A spot check of big companies shows that many are giving to coronavirus response and recovery efforts, according to CECP, a coalition of corporate leaders who push for companies to spend on social causes.
Many of the companies have been cutting back on allowing their employees to volunteer and are instead thinking about new pro bono efforts to help small businesses struggling in the wake of the pandemic and its financial aftershocks.
Daryl Brewster, chief executive of Chief Executives for Corporate Purpose, said that late last week the group sent out a “pulse survey” to its members to get a sense of what actions they had taken as the pandemic spread. Just a few of the 35 Fortune 500 companies that responded by Tuesday had not taken any action.
A quarter of the respondents had started to give either cash or product gifts as part of their existing disaster-relief plans. More than one-third had started giving and had also taken other action.
Some of the companies said they were directing employees to give to the American Red Cross, developing new pro bono programs to support struggling small businesses, and reaching out to local nonprofits to determine where the needs are greatest.
Rapid Response
Some companies started giving a few weeks ago. In late February, for instance, FedEx sent 202 pallets of goods to China, which was struggling to contain the spread of the coronavirus. Shipments included more than 2.7 million masks and 440,000 gloves.
In the United States, businesses including Starbucks, Amazon, and Microsoft combined with foundations in the Seattle area to create a $9.2 million Covid-19 response fund.
And Wednesday, JPMorgan Chase announced a $50 million commitment to provide food, health care, and other services in the United States, Europe, and China.
Long-Term Impact
But it isn’t clear if corporate philanthropy will continue to step up, especially if markets continue to tumble and profits wither.
On a webinar hosted by the Council on Foundations last week, Victoria Vrana, senior program officer at the Bill & Melinda Gates Foundation, suggested the pandemic will require more attention than the rapid-response funds companies are now setting up.
“Companies are leading the way, but it’s not enough,” she said
Giving by 60 companies tracked by CECP declined during the Great Recession. The median total for gifts of cash and products declined by 6 percent in 2009 and another 1 percent in 2010.
The response from business this time will depend on how steep the market decline is and how long it lasts, said Bradford Smith, president of Candid. After an 11-year bull market, he said, corporations are sitting on substantial reserves of cash.
The impact of the virus on consumers worldwide and on companies’ employees makes a good business case for corporations to give generously, Smith said.
“There’s a lot of self-interest, which is a strong motivator,” he said.
Corporate giving could also fill a void left by the federal government, Smith added.
“We’re seeing more and more from the corporate sector as government seems to be absent, unwilling, or incapable to deal with issues like climate and the pandemic,” he said.
