For some companies,why is it a wise policy to engage in strategic philanthropy through CSR in emerging markets?

Strategic Philanthropy

When the materials donated or the recipient organization has a connection to the core business of the company making the donation.

Building trust and reputation: By investing in strategic philanthropy, companies can build trust and enhance their reputation among local communities and stakeholders. This can lead to increased brand loyalty, customer satisfaction, and long-term business success in emerging markets.
Mitigating risks: Strategic philanthropy can help companies mitigate risks associated with operating in emerging markets. By addressing social and environmental issues, companies can minimize potential conflicts, regulatory challenges, and reputational risks that may arise in these markets.
Understanding the local context: Engaging in strategic philanthropy through CSR in emerging markets allows companies to gain a deeper understanding of the local context, including social, cultural, and economic factors. This knowledge can help companies tailor their business strategies to effectively operate in these markets.

Verified Answer

Sydney ReganFeb 18, 2024

Final Answer :

Companies that have already saturated the market in primary economies are aware that emerging and "frontier" global markets are the last places where they can grow.As such,these markets offer potentially huge rewards and returns.

Learning Objectives

Building trust and reputation: By investing in strategic philanthropy, companies can build trust and enhance their reputation among local communities and stakeholders. This can lead to increased brand loyalty, customer satisfaction, and long-term business success in emerging markets.
Mitigating risks: Strategic philanthropy can help companies mitigate risks associated with operating in emerging markets. By addressing social and environmental issues, companies can minimize potential conflicts, regulatory challenges, and reputational risks that may arise in these markets.
Understanding the local context: Engaging in strategic philanthropy through CSR in emerging markets allows companies to gain a deeper understanding of the local context, including social, cultural, and economic factors. This knowledge can help companies tailor their business strategies to effectively operate in these markets.

For some companies,why is it a wise policy to engage in strategic philanthropy through CSR in emerging markets?

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Learning Objectives

Learning Objectives

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