How Salesforce managed to become a force of philanthropic good by embracing shareholder value

Salesforce, the world's pioneering Software-as-a-Service (SaaS) company, not only disrupted traditional business models but also introduced a novel approach to philanthropy within capitalism. Under the leadership of Marc Benioff, Salesforce combined its commitment to stakeholders with its obligations to shareholders, asserting that business can, and should, indeed be a powerful platform for change in a market-driven economy:

“No matter what business you’re in, values are the bedrock of a resilient company culture (…) None of us in the business world can afford to sit on the sidelines and ignore what’s going on outside the walls of our workplaces. In the future, profits and progress will no longer be sustainable unless they serve the greater good.”

Marc Benioff, Co-Founder and CEO of Salesforce[1]

While Salesforce created the SaaS model for many companies to follow, Marc Benioff, the CEO and Founder of Salesforce, also had strong convictions about how the company should lead by example in promoting a more fair, equal, and sustainable capitalism. For many corporations, the relentless pursuit of profit often overshadows their broader societal responsibilities. Salesforce, however, aimed to rewrite this narrative. The challenge was twofold: to maintain robust financial growth satisfying shareholders while also making a tangible societal impact benefiting stakeholders.

Benioff envisioned a company that wouldn’t have to sacrifice long-term vision for short-term results by fulfilling shareholder expectations. He believed that “…business is the greatest platform for change,” [2] and that this belief would thrive in a market-driven world, with the aim of betterment for people and the planet.

Suzanne DiBianca, Executive Vice President and Chief Impact Officer of Salesforce, was tasked with leading the stakeholder strategy for the company. With this aim of making Salesforce a force for philanthropic good, DiBianca envisioned the ‘1-1-1 model’ and the ‘Pledge 1%’[3].

Through the 1-1-1 model, Salesforce pledged to continuously commit 1% of all equity, technology, and employee time toward improving education, the environment, and equality for everyone. Moreover, they sought to expand their approach to 'Stakeholder Capitalism' to other companies through the Pledge 1% movement, where other companies can join to instill philanthropic values. This way, Salesforce welcomes other companies to follow in their footsteps toward doing better for the world while remaining capitalistically for-profit.

In total, Salesforce has donated $240 million USD in grants to over 39,000 different non-profits, provided 3.5 million hours of community service, and, with more than 3,500 other companies as part of the Pledge 1%, Salesforce has managed to create a model that incites positive capitalist change in other companies as well[4]. This materializes Benioff's belief in harnessing a company's resources to give back to society.

Salesforce's strategy, while rooted in capitalism, seeks to elevate businesses beyond mere profit-making entities. Their model emphasizes that companies, even while seeking to maximize shareholder value, can be significant drivers for positive change. By bridging the gap between companies and stakeholders, Salesforce not only fulfills shareholder expectations but also champions philanthropic causes and urges other businesses to follow suit.

[1] Salesforce: ”An Inspiring Vision for Successful Companies and Careers of the Future, in Which Changing the World is Everyone’s Business”, n.d.  

[2] Barnes & Noble: Trailblazer: The Power of Business as the Greatest Platform for Change”, n.d.  

[3] Forbes: ”The Power of Purpose: How Salesforce and the Pledge 1% Model is Inspiring Silicon Valley to do Good”, 2019

[4] Salesforce: ”Pledge 1%”, n.d.