Many large companies sought to take measures to support the affected parties and reduce the negative impact of the coronavirus. Well-known giant technology companies, Facebook, Apple, Amazon, Microsoft, and Google (FAAMG), were among the few that benefited from the pandemic. While these firms have made their philanthropic contributions, their giving back actions are less than might have been expected with the success they have gained.
The spread of COVID-19 forced countries to take measures for the population’s safety, including restrictions on movements and personal meetings. The need to stay at home and avoid face-to-face communication has boosted the demand for technology and services from tech companies. Distance learning, working from home, and leisure changes made people pay attention to video conferencing, streaming platforms, shopping delivery opportunities, and similar services. Each FAAMG company received excess profits, and their total market value increased by 46% in 2020 (Torpey et al., 2021). The ten wealthiest people in the world, including FAAMG directors and owners, have increased their combined capital by 57% (Torpey et al., 2021). The success of big tech firms gives them significant opportunities of helping out.
FAAMG focused on several directions in philanthropy during the pandemic. In particular, Amazon and Google’s parent company, Alphabet, supported health research and small businesses (Ghosh, 2020). Facebook donated to relief efforts but, at the same time, had a negative impact due to the spread of fake news about COVID-19 on the network. The company introduced fact-checking to reduce such a harmful effect and supported the media (Ghosh, 2020). Apple donated to relief efforts, and Microsoft supported health care and its research (Ghosh, 2020). However, big tech has devoted only a fraction of its revenue to philanthropy. According to Tiku and Greene (2021), Amazon spent only 0.26% of the profit, Facebook – 0.36%, and Alphabet – 0.24%. The co-founder of Microsoft, Bill Gates, made the most generous donation of more than 7% of the profit (Tiku & Greene, 2021). Thus, their contributions and efforts are less significant than expected.
Giving back is primarily aimed at helping those who are less fortunate. Companies also benefit from such actions, receiving advertising and sometimes tax incentives (Torpey et al., 2021). Nevertheless, philanthropy, including the situation with big tech and the pandemic, is ambiguous. On the one hand, help is undoubtedly a virtue that can bring relief to the population. Since FAAMG have made profits and the gap between rich and poor has widened during the pandemic, these companies could make a more considerable contribution (Tiku & Greene, 2021). On the other hand, Torpey et al. (2021) believe that private donations are undemocratic, and only the state can reasonably allocate resources during such crises as a pandemic. While they could have done more, I think FAAMG helping out measures still had consequences and contributed to the improvement. Although with less philanthropy, companies saved jobs, and Amazon has even welcomed new employees (Tiku & Greene, 2021). While big tech’s help is limited, they still seek to support the population.
Thus, the pandemic has brought economic losses to many companies and a significant part of the population. However, technology giants FAAMG received excess profits since the need for their technologies and services increased. These firms helped out small businesses and healthcare and contributed to the relief efforts. Their donations, in comparison with the profit received, seem very insignificant. However, in crises, such as a pandemic, the allocation of support resources is quite tricky, and therefore the assessment of FAAMG’s contribution is ambiguous. Their philanthropic actions still have positive consequences for the population and recovery from pandemic influence.
References
Ghosh, I. (2020). What is big tech contributing to help fight COVID-19? Visual Capitalist. Web.
Tiku, N., & Greene, J. (2021). The billionaire boom. The Washington Post. Web.
Torpey, J., Brockmann, H., & Hendricks, B. (2021). Excess profits, taxpayer-subsidized philanthropy, and the coronavirus crisis: Charitable giving of the tech elite in response to the pandemic. Sociologica, 15(2), 95-116. Web.