Supermarkets lead the FTSE 100 by giving a higher percentage of their profits to charity than any other companies, and have increased donations while others cut back.
Research by the Charities Aid Foundation found Tesco gave more as a percentage of pre-tax profits than any other FTSE 100 company in 2023, donating 11.9%, up from 4.4% in 2022. Sainsbury’s was second, giving 10.6% of its pre-tax profits last year, up from 4.5%.
The two led the way by better maintaining donations in cash terms despite pre-tax profits falling. Tesco’s pre-tax profits halved from just over £2bn to £1bn, but the supermarket increased annual donations by £30m to £119m at the same time.
The £30m increase “came during a period of rampant inflation between February 2022 and February 2023 and included increased contributions to FareShare and the Trussell Trust food banks”, according to CAF’s Corporate Giving 2024 report.
Sainsbury’s pre-tax profits fell even faster, from £854m to £327m, but it did not cut donations at anywhere near the same rate, giving £38.4m in 2022 and £34.5m in 2023.
The two supermarkets have bucked a trend across the FTSE 100 of donations not keeping pace with profits over the past decade.
While the FTSE 100’s combined profits have increased by 49% since 2014, total donations dropped by 13% in the same period, representing a 34% decline in real terms, according to the report.
“As the largest listed companies, FTSE 100 businesses can lead and drive a responsible corporate culture throughout the UK’s business sector,” said CAF CEO Neil Heslop.
“Donating at least 1% of pre-tax profits should be the starting point, demonstrating a commitment to social purpose and delivering positive impact for both people and planet.
“The government has a crucial role to play too. A national strategy for philanthropy and charitable giving would help to renew a culture of giving throughout society, unlock vital charitable funds and ensure these reach the causes and areas that need it most.
“Our experience tells us that when charities, the private sector and government all play their part, we can work towards building a resilient and thriving civil society for the future.”
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