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« Whole Foods & CEO Pay | Office Re-Model »

February 1, 2007

Giving vs. Advertising

Posted by Brad Abare | Filed under: Research

In a Wall Street Journal article (subscription required) earlier this month, Gene Epstein of Barron's magazine, highlights some recent studies that show corporate generosity has its rewards. To the tune of 200% to 300% return on investment. Wow.

In addition to including some of the same research we mentioned in our entry earlier this week, Epstein takes it a little further in reporting the findings from the professors out of NYU's Stern School of Business and University of Texas at Dallas School of Management.

What these same firms spent on advertising alone was more than 50 times greater. For the rate of return on the charitable dollar to do as well, it need return only one-fiftieth as much. And, with a 200% to 300% return, according to the researchers, it does a lot better than that.

Epstein concludes his piece by suggesting that investors, fund managers and CEOs should not be asking if they're giving away too much, but rather if what they are doing is enough.

I love it when stories like this emerge that prove doing good really works.


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Comments

FYI - You can access those Wall Street Journal articles for free with a netpass from: http://news.congoo.com

My daily free tip!

Posted by: Katie at February 3, 2007 12:18 PM

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