Myer-ed in Depression

Why are some businesses still giving to the arts?  This was the subject of a recent Time Magazine article profiling how some businesses are making the tough choice to stick by struggling arts groups even in these troubling times.

In a depression, it’s only natural for business leaders to tighten their pursestrings to a chokehold.  But what of the few mad rogues who choose to spend more?  For some perspective, consider the case of Australia’s Sidney Myer, the owner of a small chain of department stores at the outset of 1930’s Great Depression.  As he saw the suffering of his community, he wrote the following exhortation in local papers:

Myer then put his money where his mouth was.  At a time when all other construction in Melbourne had halted, he undertook a complete renovation of his store against the advice of his board of directors.  He convinced his wealthy colleagues to float levies to the local government for relief programs.  Though most philanthropy had dried up, he stepped up his personal philanthropic efforts, making both public and private donations to universities, arts groups, health groups, and sports clubs.

What came of these efforts?  Other small department stores, the ones that clenched their teeth and aggressively cut costs, simply dried up and died.  Meanwhile, Myer’s acts of generosity made his department store a staple of the community, to such an extent that people declared “Myer is Melbourne.”  His store rode this wave of popularity to become a national success.  Seventy year later, Myer’s is the largest department store chain in Australia, and his philanthropic foundation continues to build goodwill in his community to this very day.

Yet another reason why to give.