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 July 5, 2008, 5:07 pm
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  Ahmedabad.com

Companies see benefits in charity initiatives

Greg Allgood’s job at Procter & Gamble Co. has taken him to remote, disease-plagued villages in Kenya, into some of the Western Hemisphere’s poorest slums in Haiti, across rebel-ridden territory in Uganda and to tsunami-devastated Sri Lanka and earthquake-ravaged Pakistan.

While most people who work for the Cincinnati-based company sell consumer products such as Crest toothpaste and Pampers diapers, Mr Allgood is the director of the Children’s Safe-Drinking Water Project. The charitable program aims to curb the nearly 2 million child deaths attributed annually to polluted water with a water-cleansing product called Pur that the company donates or sells at cost.

Like other major US companies with international interests, P&G sees long-range business benefits in charitable projects in developing countries, what some call "strategic philanthropy." "We’re not a for-loss company," Mr Allgood said. But there is strong backing among P&G’s leaders for the charitable project. "This is something we should do." Companies that work to improve health and education overseas also can improve their images in foreign countries and among consumers at home. They can reap benefits to employee morale and recruiting. And they can lay the grou-ndwork in future markets.

US corporate donations overseas have been increasing in recent years, highlighted by the more than $566 million in contributions to tsunami relief, according to the Business Civic Leadership Centre for the US Chamber of Commerce. The centre hasn’t compiled statistics on ongoing charitable projects but says they are on the increase, too.

A sampling: Starbucks Corp. provides support to coffee- and tea-growing communities around the world and works to improve education in rural China and Guatemala. Johnson & Johnson Co. programmes include eye health in Asia, diabetes treatment in Mexico and fighting pediatric AIDS in China, Russia and other countries. General Electric Co. programmes include support for rural teacher training in China and education for slum children in India. In most cases, the corporations partner with nonprofit agencies.

"I think there are various ways you can engage in these kinds of activities; there are a lot of different models out there," said Brenda Colatrella, senior director for Merck’s office of contributions. "You try to create the least amount of bureaucracy and get the most done with your partners." (AP)

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