There have been few things more talked about over the last decade than the rapid changes taking place in Asia’s economy. But as the region grows in prominence and a new breed of billionaires emerges, there are also seismic changes happening in Asian philanthropy.
For too long, as experts tell it, there was something ostentatious about much philanthropy in Asia. The largest donations came from those who wanted their name on a school or a wing of a hospital. Companies were keen to make donations in the form of big cheques handed out in front of television cameras.
“Ten years ago when the idea of philanthropy was more concentrated among the wealthy, donations were made as a status symbol to some of these donors,” said Richard Brubaker, managing director of Collective Responsibility, a Shanghai-based strategic advisory firm that promotes corporate social responsibility amongst Asia’s industry leaders.
This has started to change. Asia’s philanthropic landscape has moved far beyond just handing out a cheque to charity. Donors are increasingly concerned about the transparency of charitable organisations. They want to be sure that their money is going to help those who are really in need.
“It is no longer [like] the years when a CEO donates a big cheque, takes a picture and walks away,” Brubaker said. “People now want to know what their money is spent on.”
Perhaps more importantly, philanthropy in the region has now become more widespread — and it is often whole companies, as much as wealthy individuals, that are driving the change.
Follow the money
“I think where there is wealth there is philanthropy,” Lisa Genasci, chief executive of ADM Capital Foundation, told FinanceAsia in an interview. “Companies that have profited from Asia’s rise should be willing to give back in the communities in which they have done so well.”
The foundation helps Asian corporations achieve social and environmental impact with an aim to foster sustainable growth.
Genasci, a former Associated Press journalist, said Asia is changing the way it sees what has been traditional charitable giving. The eye-catching donations to schools or hospitals remain. But they have been joined by more charity at a company level, often among smaller businesses.
“Giving and sharing has become an important culture for many small businesses,” Genasci said. “Employees want to work with a company they feel is responsive to their community, and a strong corporate foundation helps to attract and motivate good employees.”
Corporate philanthropy has also evolved in a way that means employees are increasingly willing to commit themselves to charitable works.
Liquidnet, a privately-run global institutional trading platform, sees philanthropy as a core part of its company culture. Since 2006 the company has had an ongoing relationship with the innovative youth village in Rwanda, called Agahozo-Shalom. It is a residential community with a high school for 500 orphans and vulnerable youth in the African country.
Since then, over 90 employees have made volunteered trips to Rwanda in support of the program, and over 100 employees have competed in various events across the globe to raise over $500,000 for the campaign.
Lee Porter, head of Asia Pacific at Liquidnet, told FinanceAsia that the company’s employees are increasingly willing to commit personally to the firm’s philanthropy programs.
“Our people want to engage personally because it would be a once in a lifetime experience for themselves, and also for their families and their children,” he said.
Collective Responsibility’s Brubaker said a lot of Asian firms are committing more to philanthropy in part because they see the benefits of building a unique corporate culture.
“Philanthropy is no longer an external brand builder. It is an internal cultural driver,” Brubaker said. “It could help companies improve productivity, reduce turnover and create a sense of belonging.”
As a result, more companies are involved and are getting more mature, finding issues around the world that they really care about.
This is good news in more than one way. Increasing participation from small businesses and individuals in Asia allows more creative forms of philanthropy, according to ADM Capital Foundation’s Genasci. These groups are often willing to take more risks to make a difference.
Asian philanthropy still lags behind the Western world in some regards. A lot of countries have not done enough to encourage charitable donations with tax changes. The lack of reputable home-grown charitable organisations and corruption-related issues, particularly in China, are some of the major obstacles for philanthropy to flourish.
But Asia’s philanthropic landscape is in the middle of a tantalising transformation. There is little doubt that many Asian citizens are going to be earning more in the coming decades. The good news is that they will be giving more, too.
