Suggestions On Corporate Donations (2)

• Based on the donation information we have collected, as of 24:00 on January 29, there are more than 780 companies have donated funds or materials to support the fight against the epidemic, including Rmb8.11 billion yuan of funds and in-kind donations worth Rmb1.68 yuan (we only included the in-kind donations with specific values disclosed in news releases). If all in-kind donations are included, the total amount of donations made by businesses are estimated to have reached Rmb10 billion yuan. This is the largest corporate donation operation since the Wenchuan earthquake.

• Based on the donation information we have collected, companies from Internet, financial services, real estate, and pharmaceutical and biotech industries are the biggest donors. Internet companies donate Rmb47 million yuan each on average, with a median of Rmb10 million yuan, the same as the real estate companies. The median donation for the financial services industry is Rmb8 million yuan, and the median donations for the automobile, electronics manufacturing, and energy and chemical industries are Rmb5 million yuan. For in-kind donations, the pharmaceutical and biotech industry is the largest donor by industry, with more companies made in-kind donations than companies donated money. On the contrary, companies of the financial industry mostly donated funds. 

Figure 1: Statistics of donations by industry

(Unit: Rmb10,000 yuan)

Legend: Blue for donated funds, and yellow for in-kind donations. 

Note: Only in-kind donations with value specified

 in news releases are included. 

Source: SynTao Co., Ltd.

Figure 2: Average and median corporate donations by industry (Unit: Rmb10,000 yuan)

Legend: Blue for averages, and yellow for medians.

Source: SynTao Co., Ltd.

Figure 3: Number of corporate donors by industry 

Legend: Blue for donated funds, and yellow for in-kind donations. 

Source: SynTao Co., Ltd.

• As the fight against the epidemic continues, some companies are making additional donations according to the needs they have learned. For example, on January 25, Xiaomi took the lead to donate another Rmb10 million yuan; on January 26, Midea Group and Yili Group each donated another Rmb100 million yuan; and on January 29, NetEase donated another Rmb100 million yuan, and BGI donated another 100,000 diagnostic kits.

•  

• Evaluate whether it is necessary to make additional efforts

Companies that have supported the fight against the epidemic should reevaluate the evolving needs before making the decision whether and how to continue their support. 

• More targeted efforts

For many companies, the best supports are not only corporate donations, but also what they can do with their business capabilities, which often involves extensive internal and external communication and cross-department coordination within the companies. For example, ICBC announced 12 measures to fully support the epidemic prevention and control efforts, and Sina’s Rmb100 million special fund also makes more comprehensive arrangement to service the target of fight the epidemic.

• Risks of fulfilling donation commitments

There are two types of risks for corporate donors to be aware of. 1) The risk that their commitments are not implemented. For example, the logistics companies promised free logistic services should make sure their service lines are answered and free services are available for emergency supplies. And funds and materials committed by corporate donors should be used in a timely and efficient manner instead of sitting idle in bank accounts or in warehouses. 2) Risks in process control, especially the risk that the materials in short supply were intercepted or misappropriated.

• Medical supplies are still urgently needed

Temporary shortages of medical supplies are expected to persist for another week. Companies can use their capabilities to help. Foreign companies and domestic companies with overseas operations have already acted up to source materials overseas. Smaller companies can work together through business associations. For customs clearance, the donated materials need to have specific recipients. On the demand side, as materials are rushed to Wuhan and other epicenter, hospitals and other organizations should make better estimate of their needs and the supply situation in the next week to ensure the waste of supplies and logistic capabilities in urgent need. 

• Make arrangements for returning employees

The State Council notified that the Spring Festival holidays were extended to February 2. Local government in Shanghai, Guangdong, Jiangsu, Anhui and other provinces have required companies to resume work after February 9. The human resources departments should make arrangements accordingly. Including: decision and notification of date to resume work, surveys on employee health conditions and travel information, appropriate home isolation measures for returning employees from other cities, emergency procedures for employees who have fever, and the preparation of protective and disinfectant supplies.

APPENDIX

Below are selected companies with donations by sectors.

Click here to know more