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Saturday 16 November 2013

Philanthropy in action - yet we still complain

In recent discussions regarding the generous philanthropic pledging of $65 million by Andrew "Twiggy" Forrest at my place of employment, I am left feeling somewhat disjointed.


A guy is giving away his riches, well half of it anyway with a $65 mill outlay just recently and is roundly criticised - how is this so? That isn't half of it, in the last two years - the Forrest family has donated close to $200 million. Normally the complaint of greed resonates around the office, yet a successful entrepreneur willing to donate substantial amounts is held in contempt.


The proposed PhD research scholarships seek to become an Australian version of the Oxford Rhodes Scholarship attracting leading international researchers to Western Australia. The recent wealth of Western Australia is based on iron ore and will remain so for the next few decades; the ability to attract research, investment and high calibre individuals to develop new industries post mining boom could drive the state economy of the future.

In Australia, the phenomenon known as the tall poppy syndrome is unfortunately alive and well practiced - resentment against those for being successful; they must be criticised and attacked for their achievements as they surely must have gained knowledge, wealth, status or position by devious and unjust means. In other words, if haven't I succeeded, they must be a crook - it can't possibly be me or my lack of endeavour.
Common conceptions or misconceptions of the Forrest family donation:
  1. It is just a tax dodge. 
  2. He gained wealth by unjust means anyway. 
  3. Rich people are no better than poor people. 
  4. He stole land and wealth from indigenous Australians. 
  5. Twiggy used his position to unseat Australian Prime Minister Kevin Rudd over the mining super tax.
Inspired by Bill and Belinda Gates, Warren Buffett and the Rockefeller Foundation, hopefully the ultra rich in Australia can be motivated to increase charitable donations by people like Nicola and Andrew Forrest. The American elite have a greater penchant for charitable donations and philanthropy by their ultra rich, hopefully this attitude can catch on in Australia by individuals and corporations.

In response to such claims:
  1. $65 million is a big hole in any set of accounts, it is a big sum to spend just to get a tax refund - better to maybe just spend the $65 million. There is of course a tax deduction involved but that is a secondary consideration. 
  2. Twiggy was a former stockbroker who became the CEO of Anaconda Nickel after studying economics and politics at the University of Western Australia - hence the association with UWA. There are some pretty angry people who held Anaconda Nickel shares, no doubt about that. Andrew was a 1980s era stockbroker in the greed is good and anything goes era. 
  3. No arguments here, there are plenty of rich people who are just horrible to deal with, my experience is self-made people tend to be approachable whilst inheritance tends to breed arrogance. However people with limited means can serve the community through volunteering, yet the people accusing Twiggy of impropriety should maybe start with looking at themselves first and start serving the community by joining volunteer bush fire brigades, old people's homes, homeless shelters, silver chain, meals on wheels and other worthwhile associations - you don't need to be rich to volunteer. 
  4. This is interesting, Fortescue Metals Group is accused of offering low, the Yindjibarndi people are split in their support for the FMG offer. One could also argue to ensure everybody is happy, paying well above the market rates is the only way. Likewise, one group is negotiating, another group is holding out for more money - sounds like most corporate negotiations. 
  5. Twiggy and Kev are on the record stating they are friends, they certainly have differing views on specific issues though, did Twiggy cause Keven to be dumped as Prime Minister? Julia Gillard, Wayne Swan, Bill Shorten and Mark Arbib were responsible for Rudd's downfall, Julia even came out stating her decision to knife Kevin was based on his political paralysis denying opinion polls were the trigger. Twiggy doesn't vote on the Labor caucus, that was all Julia and co.
Am I a fan of Andrew Twiggy Forrest? He has been linked to some questionable business ethics over the years, used lobbyists such as Julian Grill and Brian Burke, likewise, dealings with Kevin Rudd are destined to end in tears (Rudd was also linked to the disgraced former premier). He has certainly polarised a number of people, what you can't argue with is the fact that Forrest has joined the ranks of Gates, Buffett, Branson and other high profile billionaires to improve the world and our society.

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