Corporate Social Responsibility
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CHARITABLE CONTRIBUTIONS
Each year the Conference Board reports on the charitable contributions of large U.S. corporations. In 2006, the 189 companies that participated in the survey made total contributions of $10.21 billion, up from $9.78 billion in 2005. The reported $7.91 billion in U.S. contributions alone amounted to 62 percent of overall estimated giving of $12.72 billion in the United States. The insurance companies in the survey are major contributors to U.S. beneficiaries, with such contributions totaling $147 million in 2006. Insurers were also among the top 20 international donors, with $13 million in international contributions in 2006.
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LARGEST GIVERS TO U.S. BENEFICIARIES BY INDUSTRY, 2006
Rank |
Industry |
Number of companies |
Total U.S. contributions |
| 1 | Pharmaceuticals | 11 | $2,926,705,480 |
| 2 | Banks | 25 | 921,649,453 |
| 3 | Computers and technology | 16 | 672,253,381 |
| 4 | Petroleum, gas and mining | 9 | 589,992,374 |
| 5 | Food, beverage and tobacco | 8 | 521,911,281 |
| 6 | Printing, publishing and media | 5 | 516,204,605 |
| 7 | Retail and wholesale trade | 10 | 481,895,935 |
| 8 | Other services (1) | 15 | 353,423,498 |
| 9 | Other manufacturing (2) | 14 | 217,495,171 |
| 10 | Utilities | 22 | 162,932,408 |
| 11 | Insurance | 20 | 147,119,275 |
| 12 | Precision instruments | 9 | 101,734,465 |
| 13 | Chemicals | 10 | 98,137,384 |
| 14 | Transportation equipment | 4 | 74,989,440 |
| 15 | Finance | 4 | 67,771,687 |
| 16 | Industrial machinery and construction | 7 | 57,515,265 |
| | Total | 189 | $7,911,731,102 |
(1) Includes telecommunications, transportation and other diversified services.
(2) Includes aerospace and defense, electrical equipment and appliances, paper and allied products and other diversified manufacturing.
Source: The Conference Board. |
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TOP TEN TOTAL CONTRIBUTIONS PER WORLDWIDE EMPLOYEE
BY INDUSTRY, 2005 (1)
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CORPORATE FOUNDATIONS
The 50 largest corporate foundations, based on total giving, made donations of $2.14 billion in 2007, with insurance companies accounting for 7 percent or $149.7 million.
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THE SIX LARGEST INSURANCE COMPANY CORPORATE FOUNDATIONS, RANKED BY TOTAL GIVING (1)
Rank |
Name (state) |
Total giving |
As of fiscal year end date |
| 1 | MetLife Foundation (NY) | $31,999,651 | 12/31/06 |
| 2 | Blue Shield of California Foundation (CA) | 31,461,056 | 12/31/07 |
| 3 | The Prudential Foundation (NJ) | 24,208,333 | 12/31/06 |
| 4 | Nationwide Foundation (OH) | 23,045,166 | 12/31/07 |
| 5 | State Farm Companies Foundation (IL) | 19,656,992 | 12/31/07 |
| 6 | Thrivent Financial for Lutherans Foundation (WI) | 19,303,213 | 12/31/06 |
| | Total | $149,674,411 | |
(1) Based on the most current audited financial data in the Foundation Center's database as of September 11, 2008.
Source: Foundation Center. |
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INSURERS AS INVESTORS
The insurance industry is a key player in the capital markets, with holdings of nearly $5 trillion in government and corporate securities in 2007.
Insurance companies invest the premiums they collect in state and local municipal bonds, helping to fund the building of roads, schools and other public projects. They provide businesses with capital for research, expansions and other ventures through their investments in corporate equities and bonds.
Because their losses are more volatile than those in the life insurance sector, property/casualty insurers invest largely in high-quality liquid securities, which can be sold quickly to pay claims resulting from a major hurricane, earthquake or man-made disaster such as a terrorist attack. In 2007 alone, property/casualty insurers’ holdings in municipal bonds totaled $368.7 billion. Life insurers, whose benefit payments are more predictable, invest more heavily in corporate stocks and corporate and foreign bonds, with holdings in these sectors of $1.5 trillion and $1.9 trillion, respectively, in 2007.
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SELECTED INSURANCE INDUSTRY FINANCIAL ASSETS, 2007
($ billions)
Source: Board of Governors of the Federal Reserve System, June 5, 2008.
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IMPACT - I.I.I. publication highlighting the insurance industry's contributions to community development.
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