Analysis of Corporate Giving Trends by U.S. Companies and Multinational Corporations

Without question, the border region’s needs in the areas of education, health, community development, and the environment are great and so, too, is the opportunity for corporate giving in support of charitable organizations working to make a difference. Here, it is important to put the maquiladora industry in context.

For the most part, U.S. and multinational corporations operating maquiladora facilities in the border region are good corporate citizens. These companies provide critical employment to border communities, pay their taxes, and some also contribute to charitable causes in the communities where they have a presence.

However, it can be argued that the growth of the maquiladora sector has contributed to a decline in the quality of life in the border region over time. It can also be said that this declinehas more to do with a lack of long-range planning on the part of municipal, state, and federal governments than with the growth itself. These agencies have simply failed to make the necessary investments in public infrastructure (schools, health care facilities, roads, and sewage treatment facilities) to accommodate the industrial and population growth that has come to the region.

As with most public companies, senior executives for major maquiladora operators are accountable first and foremost to their shareholders, whose focus is on cost containment, maximization of efficiency, and profitability. Simply doing the right thing is no longer a sufficient rationale for corporate giving. So, why does a company give?