Tuesday, October 28, 2014

Week 3 EOC: Making Money for Good

Companies that create shared value adopt operating practices and pursue policies that enhance the competitiveness of the company while simultaneously advancing the economic and social conditions in the communities in which it operates. Shared value creation is different from corporate philanthropy and social responsibility programs, which are often tangential to a company's core operations. A shared value approach, instead, entails reconceiving a company's product and markets, reinventing its value chain, and strengthening the productivity of the communities in which it operates.

For example, when senior GE executives directly engaged with the health problems of the world's poor through GE's new approach to philanthropy, they saw the tremendous range of opportunities for their business. The company couldn't sell the same products it sold in developed markets, but it could design new products that would meet the needs of the developing world. Innovations based on GE's core technologies, like an inexpensive ultrasound scanner that transmits its pictures over the Internet without a computer, are already changing the lives of women in rural villages across the developing world.  

The GE Foundation, the philanthropic organization of GE, has a rich history of building a world that works better. They empower people by helping them develop the skills they need to succeed in a global economy. They equip communities with the technology and capacity to improve access to better health and education. They elevate ideas that are tackling the world’s toughest challenges to advance economic development and improve lives. The GE Foundation is powered by the generosity and talent of their employees, who have a strong commitment to their communities.
GE has been working with many different charities and foundations since 1950. The GE Foundation and the wider GE family played a integral part in addressing natural disasters like Hurricane Katrina and the 2004 tsunami that devastated Indonesia. The GE Foundation also led the response to 9/11 with a $10 million contribution to the Twin Towers Fund.                                       http://www.gefoundation.com/about-ge-foundation/   

After the GE cut its donations by 6 percent due to the sale of its NBC unit to Comcast, GE say s its stepping up its pro bono work. It made $17.5 million in grants to 72 health clinics in regions that don’t have adequate medical services. GE donated $144,100,000 in cash and $1,900,000 in products in 2011.                                        http://philanthropy.com/article/10-Companies-That-Gave-the/132991/

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