Charity Practiced by Companies and Organizations in Transitive Economies

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Charitable giving and core factors that force people and companies to practice charity were always one of the main concerns of scientists. Under economic conditions, charity, as an activity, becomes more and more important because it can be thought of as an instrument for reallocating resources, capital and even time which belonged to those who provide charity. Making charitable giving attractive for companies and people who are responsible for cash and resources flows remains a topical issue. It is always a very disputable point since the market economy and voluntary help are the contradictions by their nature. Therefore, there is a stable understanding of charity among business persons and managers which significantly lowers the importance and necessity of implementing charitable practice into a company's strategic plans. This is reflexively expressed in a personal attitude of many people to charity. Besides, if we have a look at a typical hierarchy of a company's objectives, we will not find a charity practice there. Thus, the process of charity giving, as it is seen by the leaders, has a high level of costs and no profit, which, as it was highlighted above, contradicts principals of market. How to change this and make charity practice valuable by companies is an important issue for economic theory.