Strategic philanthropy

The foundation of the good performance of the American Express is perhaps rooted on its eligibility in using the tool of strategic philanthropy in its operational activities. By its definition, strategic philanthropy means the manner with which corporations use marketing goals desired to upgrade the welfare of the consumer stakeholders and the society in general. It is a tool aimed at working towards achieving the common good of the society, which consequently increases the potential benefits of the same organization.

Since 1984, America express has been in a revolution towards corporate philanthropy through introduction of successful campaigns aimed at restoring the statue of the community liberty within the U. S. It has often done this through offering percentage donations on the charges for its cards. The basic aim has been to restore and also rebuild society liberty statue. Across the board since its conception, this campaign has helped raising huge funds, which has consequently motivated its customers towards the purchase of its cards.

The sale of such cards has since its conception of the campaign been increasing. To the corporation, business campaign alignment has been provided even to other non-profit ventures aimed at improving the status of the society. To the corporation, it uses this strategic philanthropy tool as cause-related marketing strategy where corporate executives have formulated corporate civil foundations that work closely with the corporation. Strategic philanthropy for American express has been one of its business strategic plans for service marketing.

Currently, the corporation is making more than $30 million as grants for various nonprofit organizations. This has consequently helped in the promotion of its broad corporate activities. (Karen, 1998, 4) Therefore, strategic philanthropy by American Express Foundation has been through complimentary donations to various nonprofit organizations and civil movements. This has helped to provide an increased profitability for the organization through great customer development from the motivated society.