Newspapers / Philanthropy Journal of North … / Nov. 1, 1994, edition 1 / Page 14
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Corporate Giving 14 Philanthropy Journal of North Carolina Business and philanthropy Body Shop’s green image questioned Based on a year of investiga tion, a recent article has chal lenged claims of environmen tal and social responsibility by The Body Shop, an interna- tionai cosmetics company. A subsequent investigation by a social investment firm also questioned the company’s practices. The Body Shop stands by its claims. By Ealena Callender Wake Forest Mention of The Body Shop, an international cosmetics company, brings to mind more than shampoo and skin lotion. From its start in '1976, the company’s advertising has focused on environmental and social issues, with virtually no mention of its products. Company delivery trucks are emblazoned with appeals to save the Amazon rain forests. Promotional materials announce the company’s refusal to test prod ucts on animals. And customers are encouraged to bring their own bottles to cut down on waste. Now, questions have been raised about the principles upon which The Body Shop claims to stand. In an article published in the September/October edition of A first in history Sarah “Madame C.J.” Walker, a Harlem Reinassance-era hair-care entrepreneur, is thought to be the nation’s first black female million aire. The cover of a recent issue of Business Ethics magazine features an article questioning the Body Shop's claims of social responsibility. November 1994 Business Ethics magazine, inves tigative reporter Jon Entine com pares the company’s social stance with its actual business practices. Based on a year-long investiga tion, Entine suggests that the socially responsible image that the company projects is merely a facade. Entine finds discrepancies with the company’s claims about its level of corporate philanthropy, its use of ingredients tested on ani mals, and its application of envi ronmentally sound business prac tices. He also cites franchisee complaints about the company made to the Federal Trade Commission and the House Committee on Small Business. Entine characterizes The Body Shop as “a company riddled with contradictions.” Publicity surrounding the arti cle was extensive in the United Kingdom, where the company is based. Its U.S. headquarters is in Wake Forest. “It was sort of the equivalent of Look for GREEN, page 15 .Restructuring the way we give Retired IBM executive sets si^ts Dick Daugherty, IBM Corp.’js retired top official in North Carolina, says North Caro lina’s biggest challenge is to improve its schools. By Todd Cohen A s North Carolina’s top /\ official for IBM Corp., / i Hck Dau^erty mastered the art of integrating ^s- tems and resources, both in business and in corpo rate philanthropy. Better use of resources is Daugherty’s prescription for tackling what he views as North Carolina’s biggest chal lenge - improving its schools. “As a state, as a country, if we don’t make the necessary changes obviously needed to have our students coming out and competing, we lose in global competition,” he says. Daugherty, who retired recently as vice president of worldwide Dick Daugherty manufacturing for the IBM PC Co., was one of three finalists to suc ceed former Gov. Bob Scott as president of North Carolina’s 58- campus community college system. The system’s board in October named Lloyd Hackley, chancellor of Fayette’rille State University, as the system’s new president. Interviewed before Hackley was named, Daugherty said a key chal lenge for the community colleges was strengthening the instruction of the work place and literacy skills needed to prepare North Caroinians to compete in the global market place Another chal lenge is to better inte grate the state’s public schools, university sys tem and communi^f col leges. “This should not be a turf war,” between the public, university and community college systems, he says. Small is bountiful Small businesses give bigger slice to charity Look for RETIRED, page 15 A new study by the Indiana University Center on Philan thropy shows small businesses give more of their income to charity than do medium-sized or large companies. Previous sur veys have focused on giving pat terns of large companies, creat ing an “information gap” the new study’s authors hope to fill. By Barbara Solow i^esearchers at the Indiana /^University Center on / I Philanthropy have found a silver lining to the cloud hovering over corporate giving. Despite national surveys showing that corporate giving has remained flat, the center has discovered that Indiana small businesses gave more of their income to nonprofits than did their larger counterparts. The center’s study, “Indiana Business Contributions to Community Service,” found that busi nesses of 100 employees or fewer gave 3 percent of their net income to charity, compared to 2.5 percent given by medium-sized and large companies. A recent national survey by The Conference Board showed medium-sized and large companies gave slightly more than 1 percent of their net income to charity. The Center on Philanthropy’s survey of 1,246 Indiana companies found the average annu al cash donation per employee was $264 for small companies; $135 for medium-sized compa nies and $169 for large companies. The study’s author, Dwi^t Burlingame, says the results can be gener alized to giving patterns throughout the U.S. “The message to community organiza tions is that they need to include small business in the mix,” says Burlingame, director of research and academic programs for the Indiana Center. “These contribu tions represent a relatively small per centage of the total amount of corpo rate giving, but that percentage is especially crucial to nonprofit organi zations in small communities.” he mes sage to commu nity organiza tions is that they need to include small business in the mix. DWIGHT BURLINGAME Director of research and academic pro grams, Indiana University Center on Philanthropy. Winston-Salem fundraiser Whitney Jones says little attention has been paid to giving pat terns of smalt businesses in North Carolina. “Most people who do workplace campaigns tend to ignore them. Btlt I’m sure they are capable of giving a much larger sum.” Jones, who is president of the 'Triad chapter of the National Society of Fundraising Executives, believes the key issue in corporate giving is not how much companies give but why. “A lot of larger busi nesses these days are becoming more interna tional. They don’t feel as much of an obligation to the local community,” he says. “Small businesses tend to be much more with in the local community.” Tuck Barclay, vice pres ident for resource develop ment at United Way of the Central Carolinas in Charlotte, says outreach to small businesses has been a major Look for CHARITY, page 15 BRIEFLY Philanthropist funds scholarship John M. Belk gave $1.6 mil lion to his alma mater Davidson College to establish a scholarship in his name. The scholarship will provide quali fying students from the Southeast with full cost, which currently is $22,534 annually. Belk, whose family made its fortune in the retail clothing business, graduated from Davidson in 1943. John M. Belk Coca-Cola gives Duke$l million The Coca-Cola Foundation has awarded $1 million to Duke University to create a new Center for Environmental Education and fund fellowships and research. "This generous gift...will enable us to respond more effectively and vigorously to environmental challenges and opportunities across the curriculum," says Duke President Nanneri Keohane. Charlotte schools getting IBM technology As part of its new "Reinven ting Education" program, IBM has teamed up with the Charlotte-Mecklenburg school system to equip a $2 million "education village" with the latest computer technology in the schools. IBM plans to spend $25 mil lion over five years on the project and include up to 10 school districts nationwide. Restaurant vouchers for the homeless SeveralTslorth Carolina restaurants have received federal approval to accept food coupons from the homeless for meal pay ments. Restaurants include Christophers Inc. and King's Restaurant in Kinston; Roma Pizzeria Restaurant in Ral eigh; Country Inn in Spring Hope and Blands Barbeque in Wallace. Correction A phone number tor the U.S. Commerce Department's initiative on economic development was published incorrectly in the October edition of the Journal. The correct num ber is (202) 482-5112 or 5081.
Philanthropy Journal of North Carolina (Raleigh, N.C.)
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Nov. 1, 1994, edition 1
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