Microsoft Corporation
Essay by people • November 18, 2011 • Case Study • 834 Words (4 Pages) • 1,744 Views
The Microsoft Corporation obviously sets a high standard for employee volunteerism and community service. For the past twenty years, the company has placed a higher importance on philanthropy than any other technology based corporation. But why does Microsoft devote so much effort when they are not required to? Why do they spend literally hundreds of millions of dollars every year on donations, volunteer programs, and disaster relief?
The simplest answer to this question is that it's a good business strategy. Every major corporation in the country makes some kind of contribution to the community. Even most small businesses will sponsor a little league team or make a small donation to the local PTA. One part of a good business strategy is creating a reputation as a fair and humble corporation.
Microsoft's reputation as a fair and respectful operation is far from unblemished. After recent books, articles, and films, it is common knowledge to many people that Microsoft was founded on the ideas and inventions of other people. Microsoft's reputation suffered especially during its anti-trust difficulties from 1998-1999. During this time, the US government accused the corporation of trying to form a monopoly and attempting to force competition out of the market. Public opinion holds heavy weight in our judicial system. It has been suggested that this is the reason Microsoft has expanded their giving programs since 1998. The simple truth is that the average person doesn't care if Microsoft forms a monopoly, because it doesn't affect their lives.
However, if a flood is about to wipe out the town a person lives in or if a person can't find a job because they lack technological training and Microsoft helps them, then that person along with the thousands of others who's lives are a little bit better because of Microsoft may take an interest in how the government is treating the company. Perhaps then some of the people Microsoft have helped or someone who has heard about the good work done by the corporation see a Microsoft sponsored commercial where Bill Gates explains the rule of free enterprise and everyone's right to make an honest dollar. These people, now convinced of the raw deal Microsoft is getting, may write a letter to their congressman or fill out a petition in support of Microsoft. Although the government was successful against Microsoft in the first few anti-trust lawsuits, the decisions were soon after overturned. If public opinion had been drastically against Microsoft, this would not have been so. Ultimately, the trials had very little affect on the corporations continued earnings. At a minimum of cost Microsoft effectively ensured its continued billion dollar annual income A significant amount of Microsoft's annual donations go towards education. They provide boys and girls clubs around the country with current high tech equipment. Microsoft believes that early education
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