The sheer number of worthy issues that deserve corporate attention and investment can often seem endless. There’s infrastructure, health, food, clean water and much, much more. In this context, it’s perhaps easy to understand why education, key to pulling people out of poverty, often falls by the wayside.
Global education faces an annual budgetary shortfall of $26bn, according to Unesco. While governments, foundations and nonprofits can help with various aspects of this problem, education spending is certainly also a business issue. After all, educated workers are better equipped to become gainful employees – and profitable consumers. But education spending among the world’s largest companies isn’t nearly enough to meet the shortfall.
From 2011 to 2013, Fortune Global 500 companies spent $2.6bn on education annually, $1bn of which went to hardest-hit areas such as the Asia Pacific, Africa and Latin America, according to a study released by the Varkey Foundation on Wednesday. These companies spent 13% of their corporate social responsibility (CSR) contributions – and 10.4% of their grants – on education.
Those funds were closely connected to the companies’ immediate interests. Businesses tend to spend the majority of their money in their host countries, followed by projects in countries connected to their supply chains.
Here are the top 10 companies that are spending their sustainability budgets on education:
1. Banco Santander
Educational spending: $196.5m
Percent of CSR budget: 79%
Noteworthy program: Among its other programs, Spanish-based Banco Santander was involved in the Becalos project, which gave ATM users the option of donating 5 pesos to education – and then matched the funds. In 2012, Santander customers donated $15.9m.
2. IBM
Educational spending: $144m
Percent of CSR budget: 72%
Noteworthy program: One of IBM’s programs, KidSmart early learning, is a partnership with the United Way, the Bank Street College of Education and the Center for Children and Technology. It aims to use technology to help beginning students around the globe.
3. Telefonica
Educational spending: $129.9m
Percent of CSR budget: 65%
Noteworthy program: Spanish-based telecommunications provider Telefonica’s EducaRed portal is designed to integrate information technologies into classrooms around the globe.
4. ExxonMobil
Educational spending: $115.5m
Percent of CSR budget: 39%
Noteworthy program: US-based ExxonMobil was a founding sponsor of the National Math and Science Initiative, which works to improve math and science education in the US.
5. Target
Educational spending: $95.2m
Percent of CSR budget: 37%
Noteworthy program: In 2015, US-based Target plans to spend $1bn on education – double its 2009 contribution.
6. GlaxoSmithKline
Educational spending: $86.6m
Percent of CSR budget: 54%
Noteworthy program: UK-based GlaxoSmithKline funds educational projects around the world, including India’s Ashirwad School for children with intellectual disabilities.
7. Microsoft
Educational spending: $86.5m
Percent of CSR budget: 9%
Noteworthy program: Microsoft unveiled its YouthSpark program, which is designed to help create educational and economic opportunities for children around the world, in 2012. According to the company, it has served 227 million young people since then.
8. Toyota Motor
Educational spending: $83.5m
Percent of CSR budget: 41%
Noteworthy program: Toyota’s Family Literacy Program, in operation since 1991, works to help underserved children – and their parents – become better readers.
9. Rio Tinto Group
Educational spending: $81.6m
Percent of CSR budget: 27%
Noteworthy program: Since 2004, UK-based Rio Tinto has provided early literacy materials to 250,000 Australian families. The company has also invested deeply in aboriginal education, science education, scholarships and other programs.
10. Wells Fargo
Educational spending: $81.6m
Percent of CSR budget: 24%
Noteworthy program: In 2013, Wells Fargo donated $81.6m to 8,000 educational programs in the US.
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