Imagine getting a pay rise, then deciding to put less in the charity collection.
That’s broadly what’s happening across Britain’s biggest listed companies. Their profits have grown, but their total charitable giving has fallen.
For business students, it raises an interesting question: when a company makes more money, should society expect it to give more back?
What’s happened?
According to the Charities Aid Foundation’s 2026 Corporate Giving Report, FTSE 100 companies donated £1.69 billion in 2025, down from £1.85 billion the previous year.
Meanwhile, profits rose by 10.7% to £212 billion.
£1.69 billion is hardly loose change. But the direction of travel is striking: profits went up while donations went down.
Whose money is it, anyway?
This is where your business studies syllabus walks into the boardroom.
A shareholder-focused approach might argue that managers should concentrate on generating returns for investors. The company could reinvest its profits, reduce debt or pay dividends. Shareholders can then decide which charities to support themselves.
A stakeholder approach takes a wider view. Businesses rely on employees, customers and communities, so their decisions should consider those groups too.
Neither approach removes the need for judgement. A finance director might reasonably prioritise investment or cash reserves. After all, accounting profit isn’t the same as money available in the bank.
But cutting donations while reporting rising profits creates a decision that management may need to explain.
Charity or business strategy?
Corporate giving can do more than fund a good cause.
Imagine an accountancy firm supporting financial education in local schools. The schools gain useful resources, employees get opportunities to volunteer, and the firm builds relationships in its community.
That could benefit both society and the business.
However, there’s a catch. If a company loudly promotes its generosity while treating suppliers or employees badly, people may question its motives.
Corporate social responsibility is bigger than a donation. It also involves how a business earns its money and treats the people affected by its activities.
Look beyond the headline
The figures don’t mean every FTSE 100 company became less generous. In fact, 53 increased their contributions, while reductions among some major donors pulled the total down.
There’s also an important reporting distinction: “did not disclose a donation” doesn’t mean “donated nothing”. Missing information makes performance harder to assess; it doesn’t prove there was no giving.
For students, these are useful reminders to question what an aggregate figure actually tells you.
Your turn in the boardroom
Suppose you’re the finance director. Profits are up, shareholders want higher dividends, and a charity partner needs more support.
Do you increase donations, maintain them or cut back?
The interesting part isn’t simply which option you choose. It’s how you justify the trade-offs and whether your decision matches the values your company claims to stand for.
