Please read the case study and answer the question
Is there any way for a corporation to meet all demands in formulating policies on philanthropic giving?
2. Who are the stakeholders in the Komen/Planned Parenthood confrontation? Who was affected by the actions of Planned Parenthood? What are the impacts of boycotts of philanthropic organizations?
3. Currently, companies that have indicated an interest in conducting, or taken steps to conduct, embryonic stem-cell research have had shareholder proposals objecting to such projects or requesting that the company adopt a policy in advance of shunning such research. The proposals, such as one for the Merck 2004 annual meeting, are often submitted by religious groups that own shares in the company. Do these companies face a different dilemma from
that of Dayton-Hudson? What makes companies take such different postures? Is it the action of their managers/executives? Are there customer demo-graphic differences?
4. Some pharmacists have refused to fill prescriptions for RU-486 (the morning-after pill) because of their religious and moral convictions. Some pharmacies have refused to stock RU-486 because of the moral convictions of their staff. How do these companies resolve their postures on right to life, abortion, and choice? What makes some companies shun RU-486, whereas others agree to sell it? Why do some companies terminate pharmacists who refuse to dispense RU-486, and why do other companies accommodate those pharmacists?
Case 3.12 Planned Parenthood Backlash at Companies and Charities
Planned Parenthood is a controversial organization that has an impact on any organization from which it obtains support and also from those organizations that withhold their support. Dayton-Hudson Corporation is a multistate department store chain. In 1990, its
charitable foundation gave $18,000 to Planned Parenthood and other contributions to the Children’s Home Society, the Association for the Advancement of Young Women, and the Young Women’s Christian Association. It had contributed to Planned Parenthood for 22 years. Pro-life groups have vocally criticized corporate foundations that support Planned
Parenthood and have persuaded JCPenney Company and American Telephone and Telegraph (AT&T) to stop their contributions to the organization. After Pioneer Hi-Bred International’s foundation gave $25,000 to Planned Parenthood of Greater Iowa for rural clinics that did not perform abortions, Midwestern farmers began circulating a flyer head-lined, “Is Pioneer Hi-Bred Pro-Abortion?” CEO Thomas Urban canceled the donation, saying, “We were blackmailed, but you can’t put the core business at risk.”75
groups raised their objections with the Dayton-Hudson foundation, the foundation’s board decided to halt its contributions to Planned Parenthood. Pro-choice supporters responded strongly by boycotting Dayton-Hudson stores,
writing letters to newspaper editors, and closing charge accounts. Pickets appeared outside Dayton-Hudson stores, and picketers cut up their charge cards for media cameras. A trustee for the New York City Employees Retirement System, which owned 438,290
Dayton shares, commented, “By antagonizing consumers, they’ve threatened the value of our investment.”76 Dayton-Hudson decided to resume its funding of Planned Parenthood, even though
pro-life groups announced plans to boycott the company’s stores.77 The backlash by those who have opposing views can affect nonprofit organizations
as well. The Susan G. Komen Foundation, dedicated to the prevention, diagnosis, and treatment of breast cancer, found itself at the center of a Planned Parenthood controversy when, because of internal foundation rules, the Foundation ended its funding from orga-nizations that are under government investigation. Such a rule is not unusual for charitable foundations. Because Planned Parenthood was, in December 2011, under congressional investigation, the Komen Foundation pulled its $700,000 annual donation to the group. Accusing the Foundation of political motivation, Planned Parenthood vowed a boycott of the Foundation’s annual Race for the Cure.
Richard Gibson, “Boycott Drive against Pioneer Hi-Bred Shows Perils of Corporate Philanthropy,” The Wall Street
The 2012 Race for the Cure found many cities missing their fundraising goals in this important annual event.78
Donations waned, and the executive director of the Komen
Foundation resigned. Members of the Foundation’s board resigned as well in protest. By 2013, Nancy Brinker, a co-founder of the Komen Foundation, which was named for her sister who died from breast cancer, had resigned. The Foundation’s contribution to Planned Parenthood was restored, but with this clarification:
Susan G. Komen Affiliates fund breast cancer screening and outreach programs at 11 Planned Parenthood centers in local communities, with grants totaling $465,000. This is far less than 1 percent of the nearly 1,300 community health grants that Komen and its Affiliates fund worldwide every year. In all, Komen has invested more than $1.8 billion in community health and education programs since its founding in 1982.
The funding to these 11 Planned Parenthood locations pays for breast health outreach and breast screenings for low-income, uninsured or under-insured individuals. These include clinical breast exams and referrals for mammograms if needed.
Komen does not and never has funded abortion or reproductive services at Planned Parenthood or any grantee.79 Pro-life groups are once again boycotting the Komen Foundation.
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