Inspired companies donate, boost brands
When the global pandemic forced many businesses to shutter or scale back dramatically, GoShip.com experienced an uptick in sales.
So the South Side-based company decided to give something back to help in the fight against COVID-19: all of its profits for the months of April and May. The money will go to the CDC Foundation’s Emergency Response Fund, which is providing medical supplies, emergency staffing, research and other supports.
Even as the pandemic delivers an economic wallop to most industries, businesses large and small that expect to survive the crisis have moved quickly to donate money, food, cleaning products and other resources to help those hit by job loss or other hardship.
Some businesses have reconfigured their operations to help make face masks, hand sanitizer and other supplies, while restaurants are donating meals, and other firms are offering free products and services to hospital workers and essential front-line personnel.
Corporations and their foundations accounted for 63% of nearly $7 billion in private funding channeled to global COVID-19 efforts as of April 8, according to data from Candid, an organization that tracks nonprofits, foundations and giving trends.
The largest contribution recorded was $1 billion from Jack Dorsey, chief executive of Twitter, and the next highest was $907 million from Google.
Mr. Dorsey liquidated his equity in Square Inc., a payment processing company he cofounded, and transferred the funds to a limited liability firm, Start Small, for distribution.
GoShip.com Chairman Greg Burns declined to provide specifics on sales or the amount the privately held company expects to donate but said it will likely be “in the six figures.” The company’s digital platform provides shipping options for individuals and small businesses. It’s experienced robust growth through the crisis, he said, “because it’s the ultimate no-touch solution.”
Among the most sizable commitments by a Pittsburgh company to date is $30 million from PNC Financial Services Corp., which said it will spread that total among places nationwide where it operates.
Building goodwill
Jim Weber, professor of business ethics and management at Duquesne University’s Palumbo-Donahue School of Business, said corporate altruism becomes more visible in the wake of crisis situations like hurricanes, mass shootings or a global pandemic.
“Corporations act as individuals, as they are run by individuals,” he said. “Individuals caring for others especially during a time of need is nothing new.”
Philanthropy also benefits businesses by boosting their image, he said. “Reputation can be a major stimulus for giving
donations of cash, product or time.”
For instance, when Altoona-based convenience store chain Sheetz announced recently it would provide free coffee to hospital workers, police officers, paramedics and firefighters through June 1, it sent a message that it’s in touch with community needs.
Likewise, Mazda North American Operations on April 15 said it would offer free oil changes and cleaning services for health care workers — even if they don’t drive Mazda model vehicles.
The initiative, which Mazda said could cost $15 million, was scheduled to end May 1, but has been extended through June 1.
Once the economy reopens, “Consumers often will make purchase decisions favoring those corporations with a better reputation,” Mr. Weber said.
Coffee and money
Crazy Mocha Coffee Co. has taken a dramatic hit to sales since stay-at-home and business closure directives were issued in March — it closed all 24 coffeehouses and furloughed 150 workers — but it’s still engaging in philanthropy tied to the pandemic.
The Cranberry-based company introduced an Emergency Action Blend coffee that supports the Pittsburgh Foundation’s Emergency Action Fund.
A 10% share of all sales of the medium-roast blend are going to the community fund making grants to nonprofits addressing critical needs during the pandemic. The fund also supports arts groups that have had to cancel revenue-generating shows and events.
A 12-ounce bag of Emergency Action Blend is priced at $14 at crazymocha.com where the company is also selling chai blends; oat, almond and coconut milk barista blends; and oatmeal.
To date it’s sold about $7,000 worth of Emergency Action Blend including an order from the Cranberry Township Community Response Team.
Crazy Mocha has about 10 employees handling orders and shipping.
The shutdown of its cafes “has been difficult to navigate and there has been a lot of uncertainty, but we know that this crisis has been challenging for everyone in some way,” said Zech Pobanz, Crazy Mocha’s training manager and marketing coordinator.
Two cafes have reopened for takeout only at Heritage Valley hospitals in Beaver and Sewickley.
“We are happy to provide great coffee, but most people need money right now,” Mr. Pobanz said. “We thought that sharing a portion of what we generate through our online sales would be a good way to help others.”
Non-compete project
The desire to do good during the pandemic brought some competitors in the Pittsburgh tech sector together. More than a dozen firms that provide IT staffing raised $78,000 for the Greater Pittsburgh Community Food Bank.
Synergy Staffing founder Frank Civitate got a call in mid-April from Shari Landree, owner and president of Raeder Landree, who pitched the idea that a group of firms in the same sector could raise awareness about need at the food bank by making a collective donation.
Mr. Civitate agreed to call other recruiting firms. “I’ve been in this business for about 25 years so I should be able to cold call my competitors and I knew a lot of them,” he said.
He laid out suggested levels of giving ranging from $5,000 to $10,000 per company and assured them they did not have to meet the minimum to participate.
A total 13 firms generated $78,000 for the food bank in 10 days.
“We normally compete daily against each other recruiting the best technical talent,” Mr. Civitate said. “This was very spirited. We easily found common ground.”
Rally the troops
Corporate giving during disasters can also be a way to rally employees.
Employees from Google’s Pittsburgh office raised more than $110,000 to GiveDirectly, a New Yorkbased charity that provides cash payments of $1,000 to low-income families experiencing crisis due to COVID19.
Google’s philanthropic arm, Google.org, seeded the local donation fund for GiveDirectly and matches donations by employees.
GoShip.com opted to channel two months’ worth of profits to the CDC because, “We’re fortunate to be classified as an essential business and to be in the position to help others,” said Ramesh Chalapalli, director of product for the 3-year-old firm that has 15 employees nationwide.
“It’s core to what we believe in,” said Mr. Burns, the chairman. “If the virus problem is solved, then everyone can get back to work.”