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The Honolulu Advertiser
Posted on: Friday, March 31, 2006

Charity overseas is good strategy

By Dan Sewell
Associated Press

As director of the Children's Safe-Drinking Water Project for Procter & Gamble, Greg Allgood's goal is to purify water in developing countries where pollution is blamed for nearly 2 million children's deaths annually.

GEORGE ERWAGA | Procter & Gamble via AP

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LEARN MORE

Procter & Gamble: www.pg.com

Starbucks Corp.: www.starbucks.com

Merck & Co.: www.merck.com

U.S. Chamber of Commerce' Business Civic Leadership Center: www.uschamber.com/bclc

UNICEF: www.unicef.org

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CINCINNATI — Greg Allgood's job at Procter & Gamble Co. has taken him to diseaseridden villages in Kenya, into some of the Western Hemisphere's poorest slums in Haiti, across rebel-ridden territory in Uganda, and to scenes of tsunami disaster in Sri Lanka and earthquake devastation in Pakistan.

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

Like other major U.S. 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," 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 among consumers at home. They can reap benefits to employee morale and recruiting. And they can lay the groundwork in future markets.

"We're going into some of these countries where P&G has no presence," Allgood said. "And maybe it's 50 years from now when we have business in Haiti — but someday, we'll want to. What better way to learn the distribution infrastructures and government relationships than coming in with a product that's saving lives?"

U.S. 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 Center for the U.S. Chamber of Commerce. The center 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 overseas and works to improve education in rural China and Guatemala. Johnson & Johnson Co. programs include eye health in Asia, diabetes treatment in Mexico and fighting pediatric AIDS in China, Russia and other countries. General Electric Co. programs include support for rural teacher training in China and education for slum children in India. In most cases, the corporations partner with nonprofit agencies.

Merck & Co., based in Whitehouse Station, N.J., has been working since the 1980s with partners including former President Jimmy Carter's Atlanta-based Carter Center to donate drugs that combat river blindness in Africa. The company also provides vaccine training to African health professionals, among other programs.

American corporations often face skepticism and suspicions overseas about their motives.

Besides being sensitive to the needs of the developing world, U.S. corporations must also be sensitive to their images in the aftermath of corporate scandals such as the collapse of Enron Corp., said Noel Tichy, a University of Michigan business professor. Tichy founded the school's Global Corporate Citizen Initiative, which teaches future business leaders the importance of global responsibility.

Projects such as P&G's Pur water help employees feel good about their companies and help morale, retention and recruiting, he said.

Good works can be good for sales, too, said Philip Kotler, a Northwestern University marketing professor who co-wrote "Corporate Social Responsibility: Doing the Most Good for Your Company and Cause."

"People will associate P&G with being a good guy," he said. "That counts a lot with some people."

Meanwhile, officials of charitable organizations say partnerships with corporations bring value beyond large cash donations.

"We clearly need financial resources, but by engaging in a broader spectrum, the corporate sector can bring their business acumen, logistics support, marketing and technical expertise," said Anne-Marie Grey, who oversees corporate alliances for UNICEF.