Corporate Giving Trends in the U.S. - Mexico Border Region

Today, more than ever, U.S. and other third country multinational corporations are global in their market reach as well as where they do business. This increasingly requires that companies extend their definition of the communities they serve beyond traditional national/regional/local interests to include communities beyond America’s immediate borders where they operate or have a presence. Nowhere is this truer than along Mexico’s northern border where there are over 2,750 maquiladora assembly and manufacturing operations with over 60% owned by U.S. companies. The list of Mexico’s top 100 employers in this category includes major Fortune 500 and non-U.S. foreign companies firms such as Delphi, RCA, Ford Motor Company, Tyco, General Electric, General Instruments, Johnson & Johnson, Sony, Hitachi, Medtronic, Samsung and ITT.

Without a doubt, companies operating in the U.S.-Mexico border region, with a combined population now exceeding 12 million people, stand to gain from a healthier workforce and more vibrant, livable border communities. After all, two of the biggest challenges for companies along the border are employee retention and customer acquisition. In fact, this holds true not only for the border region but for multinationals operating around the world in general. Evidence of this is supported by a survey conducted by Cone/Roper in 1993/1994 providing strong evidence that consumers are increasingly more inclined to buy products that are associated with a company that has a positive social image, and with a cause they cared about. Over 60% of consumers stated that they would switch brands and/or retail stores to support a cause they cared about. In this context, it is clearly advantageous for a company to be viewed favorably for its charitable efforts. So, why don’t more U.S. companies and multinational corporations operating along Mexico’s northern border give?

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