DoIP PhD Spotlight: Puck van Ipenburg-Hendriks

Corporate Foundations: The Battle between Competing Institutional Demands

In a monthly interview series, the Dynamics of Inclusive Prosperity Initiative turns the spotlights on one of their PhD candidates. We learn more about their research projects, their link with inclusive prosperity and their long term goals. This edition features Puck van Ipenburg-Hendriks who studies corporate foundations.

What is your research about?

My research focusses on corporate foundations, an institutionalized form of corporate philanthropy. Corporate foundations are on the rise and are expanding their presence globally. In 2020, 80% of 200 of the world’s largest companies had a corporate foundation, and 20% more than one (CECP, 2021). Corporate foundations have the potential to contribute to achieving our most urgent societal goals such as quality education, combatting climate change, and reducing poverty. For example, the Ikea Foundation donated 193 million euros in 2020 alone to charities that work on topics such as climate action and emergency response.

Whether the full potential of corporate foundations regarding their societal aims is unlocked, will likely depend on a wide range of factors. These include the corporate foundation’s relation with its affiliated company, as corporate foundations are strongly linked to, and in most cases dependent upon, this company for funding. Affiliated companies set up and support these corporate foundations to pursue their own ethical and/or commercial interests. Without their financial support, corporate foundations would likely not exist.
At the same time, corporate foundations are separate legal entities with a charitable purpose, and are generally expected by law to solely focus on addressing societal challenges. Researchers who study foundations suggest that it is in fact their independence and freedom that enables corporate foundations to create societal impact, as this allows them to take up controversial topics and set their own agenda.

Thus, corporate foundations have to balance their purpose to overcome societal challenges with the affiliated company’s market-oriented goals. This ‘split personality’ makes them a unique and complex phenomenon, but may also lead to confusion about who is in charge, to whom they are accountable and even about their true purpose.

A Dutch media report on the work of the AH Foundation (related to the Dutch supermarket company Albert Heijn) revealed the complexities of corporate foundations’ split personalities. Albert Heijn and the Foundation used a photo of a Ghanese’s farmer for marketing materials without his consent or compensation. The photo was accompanied by the message that Albert Heijn’s suppliers and the AH Foundation contribute to a higher standard of living for the local community. An evaluation of the foundation’s projects, that were set up to support the employees and communities of the company’s supplier in Ghana, showed mixed results.

My research aims to address these complexities by uncovering whether in different corporate foundations business or societal benefits have the upper hand and to establish how corporate foundations can improve the balance between the business and societal demands to yield social change.

How are you progressing so far and what are your main findings?

Over the past year, I studied the current academic literature on corporate foundations and related fields, and developed my research proposal. I observed a strong bias in the literature towards a business perspective on corporate foundations. Research almost exclusively focusses on the potential business case for this form of corporate philanthropy (e.g. improved reputation). I am currently working on a paper that investigates whether this bias towards business benefits also exists within corporate foundations. In my second paper, I will study the legal context of corporate foundations in Europe and how, through legal frameworks, countries aim to influence the dominance of corporate foundations’ societal or business purpose.

In what way is your research project contributing to inclusive prosperity?

Corporate foundations, with their main purpose to address societal challenges, have the potential to contribute to increasing prosperity for the marginalized in society. However, because of the current focus of (academic) research on the benefits for the company we know little about what corporate foundations actually aim to achieve, their philanthropic activities and their actual impact on the community. In light of the growth of this phenomenon it is crucial that we understand whether and how corporate foundations can have a positive impact on society. I contribute to research that creates insights in the role corporate foundations can play in reducing poverty and inequality.

What is the added value in doing your PhD at the Dynamics of Inclusive Prosperity Initiative?

It is very inspiring to be surrounded by academics who, each from a different perspective and in their own way, aim to contribute to a more sustainable and inclusive society. Because of the strong focus on current societal challenges, I also feel supported in my ambition to produce academic research with strong societal relevance.

What are your ambitions for the future?

My ambition is to bring academia and practice closer together. I aim to achieve this by facilitating collaborations that can increase the impact of corporate foundations, for example, by organizing brainstorm events for representatives of corporate foundations. I made the transition from practice to academia myself only two years ago and as a manager of a corporate foundation I highly valued the efforts of academics to translate their research into practical insights. I therefore hope that through my research and as a lecturer, I can also contribute to research and education that has a meaningful impact on both the scientific community and practitioners, with the ultimate goal to help corporate foundations reach their societal goals.

More information

Promotor: Prof. Lucas Meijs (RSM)
2nd Promotor: Prof. Liesbeth Enneking (ESL)

Starting date of PhD: July 2020
Expected end date: July 2024

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