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Corporate cash feeding in to the bush PDF Print E-mail
Jill Stark, The Age,
 
January 22, 2007

IT'S a gesture that seems almost too good to be true. Tomorrow, in a move expected to generate more than $3 million, every cent of profit earned in Woolworths and Safeway supermarkets will go to drought-ravaged communities throughout Australia.

Has the retail giant become the people's champion or is it simply cashing in on the feel-good factor such free publicity undoubtedly buys?

As drought and bushfires wreak economic havoc throughout the country, corporate Australia is increasingly sinking cash into the bush.

The big banks, supermarkets and telcos are promoting themselves as citizens of the community.

"We're just an organisation made up of lots of people who are part of the community, people who shop at our stores, or may be part of a union or a community group," said Woolworths communications manager Clare Buchanan.

Days after the Woolworths announcement, Coles pledged a minimum of $100,000 to the Salvation Army's drought appeal and promised to match the sum donated by customers in all the chain's supermarkets.

Corporate social responsibility has become a key factor in the way big business operates in Australia during times of crisis.

Most big banks now offer relief such as interest-only facilities, fee waivers and loan restructuring to drought-affected customers.

"Clearly when those communities are enjoying success we're enjoying success and when they're hurting we hurt with them," said Rob Goudswaard, ANZ's managing director of regional, rural and small business banking. ANZ recently announced $1 million of cash grants for farmers in drought-stricken areas.

But Michael Schwartz, associate professor and expert in business ethics and corporate social responsibility from RMIT, believes the big companies are unlikely to be motivated by philanthropy alone.

"It worries me a lot that it's simply a PR exercise but because the wider community are more aware it makes it more incumbent on corporations to behave in ways that they might not have liked to behave but have it forced upon them."

 
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