Buffett Model Doesn’t Apply to All Companies

To the Editor:

Your article on Warren Buffett (“Corporate Giving, the Buffett Way,” November 13) failed to make a universal case for his plan of individual shareholder choice in determining companies’ charitable donations.

Berkshire Hathaway is a holding company with interests in many corporations. There are few employees at the corporate office. Thus, it makes perfect sense for Mr. Buffett to let shareholders make their own charitable decisions.

However, when a corporation has a large number of employees and a significant physical presence, its responsibility is very different because it consumes community services: transportation, social services, schools, etc. In this case I would hope a corporation would give directly back to the community. Corporate officers need to carry out a role of being connected to the local community.

Berkshire Hathaway happens to be in Omaha, and its presence creates little demand for services. Since Berkshire Hathaway’s wealth is created mostly outside Omaha, it’s just fine for the stockholders to select charities that represent their charitable concerns.

What the article left unaddressed are the corporations that fail to give anything back to their communities.

The Rev. James (Buzz) Hargleroad
Former Executive Director
Interfaith Council for the Homeless
Chicago