Corporate Philanthropy

Porter and Kramer (2002) posited that organizations can utilize corporate philanthropy as a competitive advantage. They suggested that using Porter’s four elements of competitive context as a foundation would be the best method. The method is based on four key elements. First is factor conditions (Porter & Kramer). Attaining high productivity is dependent upon several factors including high-quality technological and scientific institutions, the availability of natural resources, acceptable physical infrastructure, trained workers and, efficient and transparent administrative processes (Porter & Kramer).

Second, demand conditions include the size of the local market, the sophistication of the customers in the market, and the suitability of product standards (Porter & Kramer, 2002). The more savvy the local customers are the more competitive the market is likely to be. This is because the customers are better able to provide insight that can help in innovation. The third factor is the context for strategy and rivalry. This factor is related to governance because rules, incentives, and societal norms affect competition and have influence on productivity. The final factor is related and supporting industries. An organization’s productivity can be boosted through nearby first-rate supporting industries and services (Porter & Kramer).

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Organizational Ethical dilemmas

Commonly organizational mistakes that lead to ethical dilemmas

Leadership does not model the appropriate behaviors

Leaders act entitled

Cutting corners to meet misplaced incentives or being rewarded for the wrong things

Employees feeling they must obey leadership even when they know they are being asked to do something wrong.

Fear of conflict

Defensive logic – The everyone else is doing it theory

(Ceplenski, 2013)