So how should a CFO devote corporate resources to doing good? An innovative approach proposed by Harvard management gurus Michael Porter and Mark Kramer advises companies to treat philanthropy as akin to spending on research and development — an investment in the future. Just as well-run companies know they cut back on R&D at their own peril, so they should be reluctant to reduce their philanthropy if they believe it has long-term bottom-line benefits.

Echoing Porter and Kramer, Klaus Schwab, founder of the World Economic Forum, considers "global corporate citizenship to be a long-term investment. Because companies depend on global development, which in turn relies on stability and increased prosperity, it is in their direct interest to help improve the state of the world."

Well, maybe. But how can companies weigh the value of a philanthropic bent? With the "triple bottom line" or "blended value," to name just two of many tools now available. Top accounting firms can now furnish a consolidated picture of financial, social, and environmental performance. Admittedly, this is still more art than science, though the trend may soon give science an edge. Alert CFOs measure what they can and confirm internal verdicts with independent audits, particularly when reputational risk hangs in the balance.

Is doing good really worth doing? Plenty of critics express doubts about companies that seek credit for good citizenship. Charges range from putting lipstick on a pig to brazen betrayals of shareholders. Yet, good corporate citizenship has shades other than black and white. With ample resources, the ability to innovate, and a sound sense of balance, CFOs can help direct healthy companies toward significant roles in solving the big problems facing the world.

Matthew Bishop is chief business writer of The Economist. He is co-author (with Michael Green) of the book Philanthrocapitalism: How the Rich Can Save the World, to be published by Bloomsbury Press on October 1.

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