Outsourcing of Corporate Giving: What Corporations Can(’t) Gain When Using a Collective Corporate Foundation to Shape Corporate Philanthropy
Recent years witnessed a diversification of the how of corporate philanthropy. The chapter distinguishes between in-house (direct) corporate giving and outsourced (indirect) corporate giving, bringing corporate philanthropy back to a make-or-buy decision. In addition, corporate donors can go down a collaborative path and participate in collective corporate foundations (CCFs): a corporate foundation serving the interests of multiple corporate donors simultaneously. The chapter examines the rationales of and consequences for corporations outsourcing corporate philanthropy by means of a CCF. The study entails a single instrumental case study in Rotterdam, the Netherlands. Primary data stems from 19 interviews with various stakeholders, including (former and non-) donor organizations. The study finds two rationales guiding corporate decision-makers facing the make-or-buy decision of corporate philanthropy: (1) available resources and (2) need for efficiency. Second, the study finds three consequences for corporations from utilizing a CCF for corporate giving: (1) loss of control, (2) loss of involvement, and (3) fewer organizational one-on-one residues. Third, the study identifies a trade-off between the identified rationales and consequences. The chapter concludes by relating the rationales back to a strategic management and an economic view on outsourcing and by discussing the study’s limitations as well as the implications for corporate decision-makers and beyond.
KeywordsOutsourcing Qualitative research Collective giving Corporate philanthropy
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