June 15, 2013

Charitable contributions, In–house and Collaboration

The most importance decision is to determine which governance structure is the most effective one for the firm, in-house, outsourcing or collaboration. According to Husted & Allen (2011) firstly the company should start with making decision on governance structure for social activities, the take blow shows the different between each approach.

Charitable contributions

Financial support for non-profitable organisations that undertake charitable, social, educational, community or scientific work.

The benefit is that the firm can directly resources to those community and other social organisations that are experts at a particular problem.

The company's managerial involvement is minimal.


The firm need to participate in the plan, execution and evaluation of the social activities, they take these actions alone without assistance of out-side non-profit organisations.

The company allocate financial and other resources to the project, which is implemented through an organisational unit within the firm.

The benefit is that the social project can it can be designed to meet specific needs of the company or community.


Form a partnership with other firms and a non-profit organisation, transfer resource or finance the carry out the social project together.

They able to maximize the contribution for the society and the costs can be shared by corporate sponsors.

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