
The Business of Giving
Exploring philanthropy, non-profits and socially motivated business, from the Gates Foundation to your donation. A fresh look at the economy of good intentions.
April 24, 2009 11:27 AM
Amazon.com's surging profit -- time for giving back?
Posted by Kristi Heim
It's a question being asked more often of the online retail giant, a 15-year-old company that reached a recession-defying jump in profit last quarter to $177 million. Amazon's quarterly sales rose to nearly $5 billion. Annual profit was $645 million last year. The company's share price of $85 today is up 74 percent since October, with a market capitalization 30 percent higher than Boeing's.
Good news for shareholders. Maybe it's enough to reward them with robust earnings and employees with good jobs. But at a time when social service organizations are struggling, some critics are asking why isn't Amazon donating more? Any thoughts from readers on this topic are welcome.
It may be useful to take a look at some of Amazon's peers. Many retailers said they are planning to increase their giving to charity despite sales declines, according to the Chronicle of Philanthropy.
Here is Amazon.com's Giving page, which shows the retailer donating about $35 million to disaster relief programs through the years, and supporting various programs for authors and publishers.
A recent Taproot survey of business professionals attempted to measure the mood around corporate philanthropy during the recession. About 75 percent of the 4,000 business people surveyed said they would be proud of their company if it gave time and money to charity right now, and they also called on executives to give more of their own personal time and money.
In an interview last year with Portfolio, Amazon.com CEO Jeff Bezos hinted that he is at least thinking about the question of philanthropy. Here's what he said:
Q: You've become a very wealthy man. What are you going to do with your money?A: Good question. I don't know. My parents are running the Bezos Family Foundation, and they're focused on education. I'm still focused on Amazon, but I have some ideas. I'll keep them to myself for now.
Q: So you won't tell us?
A: No.

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