What is corporate philanthropy?

Corporate philanthropy refers to a company's charitable donations and community support activities. This includes financial gifts to nonprofits, product donations, employee volunteer programs, and foundations established by the company. Unlike regular business expenses, these contributions are specifically intended to benefit society rather than directly generate profit.

What is ESG investing?

ESG stands for Environmental, Social, and Governance criteria that investors use to evaluate companies beyond just financial returns. The "Social" component includes how companies treat their employees, suppliers, customers, and communities, including their charitable giving. ESG investing aims to generate positive returns while also considering a company's impact on society and the environment.

How does corporate giving potentially benefit stock performance?

When companies give back consistently, they may build stronger brands, increase customer loyalty, attract top talent, and signal good management. These factors can contribute to long-term financial health and stability. Additionally, as more investors seek socially responsible companies, firms with strong giving programs may attract more investment dollars, potentially supporting their stock prices.

What is the 1-1-1 model mentioned in Salesforce's description?

The 1-1-1 model is a corporate philanthropy approach pioneered by Salesforce that commits 1% of a company's equity, 1% of its product, and 1% of employees' time to charitable causes and community service. This integrated approach means philanthropy is built into the company's structure from the beginning, rather than added later as an afterthought.

What are dividend yields and dividend payment dates?

Dividend yield is the annual dividend payment divided by the stock's current price, expressed as a percentage. For example, a stock priced at $100 that pays $3 in annual dividends has a 3% dividend yield. The dividend payment date is when the company distributes these payments to shareholders. Companies that prioritize giving back often also maintain consistent dividend programs, sharing their success with shareholders.

17 handpicked stocks

Companies That Give Back

Channel your investments toward companies that make philanthropy a priority. These stocks have been carefully selected by our analysts for their commitment to giving back while building sustainable businesses that could deliver long-term value to investors.

Han Tan | Market Analyst

Updated 2 days ago | Published at जून 17