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Difference between Externally Facing Philanthropy and Internally Facing Compassion

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Clearly, corporate leadership is a complex construct. This is amplified when values and beliefs don't seem to align with bottom-line growth. The notion of “compassion” in business often gets reduced to the simple concept of corporate philanthropy. In the 21st century, progress in corporate philanthropy and benevolence kicked into high gear. Philanthropy benefits a firm's reputation and enhances sales prospects who appreciate the charitable work. But, although philanthropy may be lauded externally, inside corporations it's often perceived as a drain on profits and an unnecessary operating expense, especially in market downturns. Further, just because a company is philanthropic doesn't mean it treats employees well.

Philanthropy communicated through corporate websites and annual reports tout externally focused “corporate social responsibility” programs. There is nothing wrong with this: doling out resources and funding to communities and causes should continue to be highly regarded. But charity alone will not help corporate culture survive the coming decades. Valuing people, not just valuing profits, is the long-term solution. Investing in the people inside our enterprises—in their education, growth, and well-being—strengthens the communities and marketplaces where businesses operate. It's also the way to strengthen the employee-employer relationships needed to innovate and drive businesses forward.

True corporate compassion can't be a separate subsidiary or a spin-off of the primary enterprise. It's not something that can be tacked on as an afterthought. Compassion begins with leadership that integrates the values of courage, inclusion, purpose, and equality into business practices as foundational to the internal business culture.

Corporations Compassion Culture

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