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More businesses arc addressing social issucs through philanthropy. Companies donate a portion oftheir revenues to charitics or a specific social cause. Education is known to be the favourite object for philanthropy in which 75 percent of companies are participating. Although the donations will help a good cause, many companies use philanthropy primarily to improve their reputation or get a tax deduction. Philanthropy is not limited to the mature markets in the West. In emerging markets philanthropy is even more popular. Asia’s millionaires committed 12 percent of their wealth for social causes. While millianaires in North America only contribute § percent and those in Europe 5 percent.
Although philanthropy helps society, we should never over estimate its sociocultural impact. Recent growth in philanthropy is driven by the changes in the society. Even in a recession, 75 percent of Americansstill donate to a social cause.
But philanthropy does not stimulate transformation in the society. Transformation in the society drives philanthropy. That is why addressing social issues with philanthropic activities will have a rather short-term impact,
A more advanced form of addressing social challenges is cause marketing — a practice where companics support a specific cause through their marketing activities.
What is the main idea of this passage ?
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