Reputation Gurus

Clients frequently ask us about corporate giving, and what the guideline is for how much a company should put towards its CSR intitiatives.  The general rule of thumb is about 1% of profits — at least in the US.

However, it’s interesting to note that some governments either currently mandate or are trying to mandate how much a company should give, as well as where they spend their money.  In the UK, the foreign secretary recently tried to launch a drive to ensure that British business is “socially responsible” in its international dealings, noting that the way British business behaves impacts the reputation of the entire nation.  I also learned last week that the small country of Slovakia mandates that Slovakian businesses donate 2% of their profits to a Slovakian charity.

I’m not sure if this is a trend, but global businesses should sit up and take notice.  I’m sure that there are no American businesses that would want a government mandate on CSR, nor would most companies.