UNTANGLING THE QUALITATIVE ASPECT OF STRATEGIC PHILANTHROPY ON MANAGERIAL EFFICIENCY AND PROFITABILITY

Abstract

The main purpose of this study is to measure the correlation by the use of qualitative measurement in relation to the impact of strategic philanthropy on firm’s profitability. This research uses Primary Data Collection Method through Questionnaire to collect professional responses from top level personnel and executives working in various industries. Questionnaires were carefully designed and sent to forty managers to seek their candid and professional opinions to the research topic. Thirty managers responded within the timeline given (response rate of 75%). The remaining 25% who failed to answer were validated with net income data from ten giants corporations who saw significant positive increase of their net income by participating in some form of strategic philanthropy within the four-year period from 2008-2011. The responses were categorized and analyses were performed on the responses and the information that were collected to determine data reliability and usefulness. The research findings reveal that strategic philanthropy have direct relationship with firms profitability as the number of years of firm’s adaptation of the strategy and managerial efficiency increases. Majority of the respondents were very much satisfied with the way their firms adopted the managerial strategy to maintain their corporate goals.