Strategic Philanthropy and Maximization of Shareholder Investment through Ethical and Values-Based Leadership in a Post Enron/Anderson Debacle

This paper discusses the relationship between strategic philanthropy and the maximization of shareholder value. It highlights such key concepts as ethics, values, corporate social responsibility (CSR), corporate social performance (CSP), corporate financial performance (CFP), organization citizenship and strategic philanthropy. It is posited that unethical behavior by firms result in three levels of costs that can ultimately leads to the firm’s demise. Finally, reflections and discussions are provided to assess if there is an optimal level of strategic philanthropy for maximizing shareholder value. The conclusion is that increasing shareholder wealth is positively correlated to CSR and that a firm’s investment in CSR is a function of the collective ethics and value set of the firm’s leaders and followers.