“As I became older, I became more and more inspired to help rural, underprivileged children.” – Babar Ali
This morning on the BBC, I heard a very interesting story about this boy teaching his neighbor children who cannot attend school. He sounds like a remarkable young man and I wish him all the best.
Here is a link to the story about him:
http://news.bbc.co.uk/2/hi/south_asia/8299780.stm
Here is a link to a video, where school children in the UK are asking questions for Babar to respond to:
http://news.bbc.co.uk/2/hi/in_depth/8302225.stm
Virtue Capital readers may be interested in another view of how/why Wall Street failed and hurt the entire economy. Here’s the first paragraph and a link from an excellent article by Michael Lewis in a recent issue of Portfolio magazine. Portfolio has been doing some nice features as a new business magazine on the block. Thanks to Greg Griffin, our friend at The Denver Post, for nominating this piece for inclusion on the blog. http://www.portfolio.com/news-markets/national-news/portfolio/2008/11/11/The-End-of-Wall-Streets-Boom/
To this day, the willingness of a Wall Street investment bank to pay me hundreds of thousands of dollars to dispense investment advice to grownups remains a mystery to me. I was 24 years old, with no experience of, or particular interest in, guessing which stocks and bonds would rise and which would fall. The essential function of Wall Street is to allocate capital—to decide who should get it and who should not. Believe me when I tell you that I hadn’t the first clue.
Good opinion piece today in the NYT about how the gift Leona left to the dogs costs taxpayers (Link to full article here).
Dog Eat Your Taxes?
By RAY D. MADOFF
Published: July 9, 2008
“THE latest news from the Palace, that Leona Helmsley left instructions that her charitable bequest of as much as $8 billion be used for the care and welfare of dogs, rubs our noses in the tax deduction for charitable gifts and its common vehicle, the perpetual private foundation. Together these provide a mechanism by which American taxpayers subsidize the whims of the rich and fulfill their fantasies of immortality.”
“I’m just standin’ in the rain talkin’ to myself.”
– Paul Newman as Cool Hand Luke
Actor Paul Newman’s philanthropic group suggests only 11% of executives are “very effective” or “extremely effective” at meeting social goals and addressing society’s expectations of their business.
A report this month from the New York-based Committee Encouraging Corporate Philanthropy, or CECP, involved in-house research as well as research by McKinsey & Co. that surveyed more than 700 company executives around the world. They found aspects of self interest by CEOs and board members often were top considerations influencing corporate philanthropy programs. A higher percentage of the efficient philanthropists rated local community needs, high social potential and CEO/Board personal interests as the top three considerations for corporate philanthropy. Among the non-efficient philanthropists, the highest consideration was CEO/Board personal interests followed by employee interest and local community needs.
CECP spokeswoman Lindsay Siegel admits that identifying the 10% more efficient philanthropists CEO’s creates an “aspirational” effect and causes the most innovation executives and companies to become a sort-of lead steer in matters of philanthropy. One issue is for companies to look beyond philanthropy as a means to improve reputation and marketing. Rather, the smart CEOs are treating corporate philanthropy as any other business unit and as an opportunity to make real change for communities where the company operates. The right focus is “Difficult to develop at a large company if it hasn’t been there in the past,” she says. “When a CEO gets it, they can develop more authentic philanthropic offerings rather than using it as a marketing piece.”
The study also demonstrated some bashfulness on the topic by c-level executivies. A few executives were quoted (such as Merrill’s John Thain) and companies named (such as PNC Financial Services Group in Pittsburgh), but many remained anonymous. Many executives still fear the wrath of shareholders, who may think that corporate giving comes at the expense of shareholders and is not the primary role of public companies. Ms. Siegel argues that some shareholder concerns are subsiding. “Philanthropy is important to long-term shareholder growth,” she says.
Many executives wish their corporate philanthropy would help further the company’s reputation or brand (90% of efficient philanthropists and 70% of the others report this goal as the top goal). But only 13% of executives said they have been successful achieving this goal.
CECP says its membership makes up 40% of reported corporate giving in the United States. It was largely founded by actor Paul Newman among others. Mr. Newman did not attend the group’s major conference earlier this month as news came out early in June that the 83-year-old actor is battling cancer.
The actor – nominated for nine Oscars and winner of one for the 1986 film The Color of Money – has made philanthropy a focus in recent decades. He created the Newman’s Own line of organic foods from Organic Balsamic salad dressing to “Farmer’s Garden Salsa”. The company says it donates all profits and royalties after taxes for educational and charitable purposes. Paul Newman and Newman’s Own foundation have given more than $200 million since 1982.
Welcome to my blog, Virtue Capital. We will explore the world of how to make money, spend money and give money in responsible and redemptive ways. I welcome your participation! -Paul
