The problem with this issue usually is that company bosses and even society at large forget who owns the company's cash and, therefore, who should decide over its disbursement.
The company's cash is owned by the shareholders and should only be used by the managers strictly for the defined purpose for which it was allocated to them, that being to run a profitable company.
Companies and their managers are required to behave both legally AND ethically in running their affairs, no debate! Companies, however, are NOT charitable organizations and executives should not be put into (and should not put themselves into) the situation where they are deciding over charitable disbursements. Surplus cash should be returned to its rightful owners, the shareholders.
I am NOT arguing against charitable giving, cash and non-cash. This should be done and it should be done by those that feel it, the owners of the cash. Giving someone else's cash away, and taking the credit for it, is standard procedure for many company executives and they should not be allowed to continue with this corrupting practice.
OAM
See article:
The view that “the sole purpose of a business is to make money and provide a return to its shareholders” is usually attributed to Milton Friedman, the Chicago economist, although it is echoed in economists’ writings from as far back as the 18th century. It is one of the controversial beliefs in modern business, and attracts critics and defenders in equal numbers.
Prof Friedman and others argue that a business is the property of its shareholders. It is the duty of managers to look after the investments of shareholders and generate a return on capital invested, providing shareholder value.
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