It was reported by Jinhua News that on May 22, Wang Laoji, a top herbal tea in China has been sold out in the market. The reason for this explained by dealers is that WangLaoji' s generosity in donating 100,000,000 RMB to the disaster area earned people's respect and stimulated their interest in the tea. The biggest donation for the earthquake by Wang Laoji was done at the charity performance named as “A Dedication To Love” held by CCTV that was broadcasted nationwide.

Charity donation can improve the public image of a company, win the favors of consumers, and thus enhance the value of its brand. The social effect brought by donation for charity is more than that of advertisement. Bill Gate took out 54% of his money to set up the “Bill Gate” Charity Foundation. This act helped software to secure bigger market share by winning favors of consumers. A calculation has been done by an organization that every dollar Gate put into charity won 1.1 to 2 dollars back.

WangLaoji' s generosity in donating has presented the image of enterprise with strong sense of social responsibility. As a result, its brand has also been improved. On the contrary, Wanke, a top real estate company in China that just donated 2,000,000 RMB have been criticized by netizens, suffering the degradation of company image.

---by Yang Xin, FFL, NBU