Compassionate companies? The emergence and development of corporate foundations in Switzerland (1930-1960)

• In Event: Images and perceptions of philanthropy

Abstract

The research presented is part of a monograph project, which is the first-of-its-kind to analyse the historical dimensions of corporate foundations (CF) in Switzerland. Although CF have grown both in number and importance worldwide in recent years (Roza et al., 2020), there is still a gap in the understanding of why companies initially started to set up foundations. Thus, the research aims to provide an overview of Swiss CF and their main funding areas over the 20th century, with a focus on CF giving to science and education (1930-1960).
Gautier and Pache (2015) describe corporate philanthropy as an oxymoron, as it runs counter to the purpose of profit-oriented companies. Although there is comprehensive research on the hybridity of CF (Rey-Garcia, Sanzo-Perez and Álvarez-González, 2018; Gehringer, 2021), studies on the motivations of establishing CF are still limited (Brønn and Vidaver-Cohen, 2009; Chao-Lan Wang, Ching-Hsuan Lu, and Te-Tzu Kuo, 2022). Therefore, using case studies of early foundations in the pharmaceutical and industrial sectors, the author aims to respond the following research question: Can CF be interpreted as a response by the companies to social criticism (Boltanski and Chiapello, 2018)? In addition, the position of the foundation in society and its public image will be also examined.
The systematic search for Swiss CF is difficult due to the lack of transparency in the foundation sector, the restricted access to private archives and the quality of preserved documents. Therefore, qualitative research methods are used for this research. First, desk research is conducted on CF for the period between 1930 and 1980. Second, archives are contacted and existing records in the archives are studied. The data collected (work still in progress) allows structuring by two main funding areas: science and education (1930-1960); arts and culture (1960-1980).
Preliminary findings show that the 1940s and 1950s were a unique time period for CF: While some companies established more than one foundation, others joined forces to co-establish one foundation together (a collective corporate foundation). While setting up foundations show diverse solutions, almost all CF were set up with the aim to support science and education.
CIBA Foundation from 1934 is the starting point for a whole series of foundations set up in the pharmaceutical industry in Basel. It is noteworthy that several foundations were established during the Second World War – some of them as a joint venture between different companies like the Stiftung für biologisch-medizinische Stipendien (founders: CIBA, Hoffmann-La Roche, Sandoz, Maggi, J.R. Geigy, Nestlé, A. G. vorm. B. Siegfried, Wander A.G., Verbindung der Schweiz. Ärzte) in 1942. It is also striking that a company often sets up several foundations within a short time, for example Georg Fischer AG between 1943 and 1948 or the Basler Kantonalbank in 1950. The latter is a state-supported bank. For future research, it is also worth looking more closely at government-owned companies setting up CF.
Among other reasons, this work is relevant for the third sector to contribute to the limited research on the history and the initial motives of CF.

References

Archival Sources
Konzernarchiv Georg Fischer AG (no date) ‘EBA 9 Stiftung Eisenbibliothek (Bestand)’.
Novartis Firmenarchiv (no date) ‘Firmenarchiv CIBA, RE 15.00 Stiftungen’.
Novartis Firmenarchiv: (no date a) ‘Firmenarchiv CIBA-GEIGY, RE 11 Stiftungen’.
Novartis Firmenarchiv: (no date b) ‘Firmenarchiv Sandoz, A 906.006 Stiftung für biologisch-medizinische Stipendien’.

References
Boltanski, L. and Chiapello, È. (2018) The new spirit of capitalism. New updated edition. Translated by G. Elliott. London New York: Verso.
Brønn, P.S. and Vidaver-Cohen, D. (2009) ‘Corporate Motives for Social Initiative: Legitimacy, Sustainability, or the Bottom Line?’, Journal of Business Ethics, 87(S1), pp. 91–109. Available at: https://doi.org/10.1007/s10551-008-9795-z.
Chao-Lan Wang, Ching-Hsuan Lu, and Te-Tzu Kuo (2022) ‘Corporate Foundations: Tax Avoidance or Corporate Social Responsibility.’, Journal of Accounting Review, 74(1), pp. 103–150. Available at: https://doi.org/10.6552/JOAR.202201_(74).0003.
Gautier, A. and Pache, A.-C. (2015) ‘Research on Corporate Philanthropy: A Review and Assessment’, Journal of Business Ethics, 126(3), pp. 343–369. Available at: https://doi.org/10.1007/s10551-013-1969-7.
Gehringer, T. (2021) ‘Corporate Foundations as Hybrid Organizations: A Systematic Review of Literature’, VOLUNTAS: International Journal of Voluntary and Nonprofit Organizations, 32(2), pp. 257–275. Available at: https://doi.org/10.1007/s11266-021-00318-w.
Rey-Garcia, M., Sanzo-Perez, M.J. and Álvarez-González, L.I. (2018) ‘To Found or to Fund? Comparing the Performance of Corporate and Noncorporate Foundations’, Nonprofit and Voluntary Sector Quarterly, 47(3), pp. 514–536. Available at: https://doi.org/10.1177/0899764017750492.
Roza, L. et al. (eds) (2020) Handbook on Corporate Foundation: Corporate and Civil Society Perspectives. Cham: Springer International Publishing (Nonprofit and Civil Society Studies). Available at: https://doi.org/10.1007/978-3-030-25759-0.

Author

• Anja Rogenmoser