Paul Saffo on dot-com greed and giving

(CNN) -- Are the tech giants greedy? Or has their self-indulgent reputation lessened as well-known execs make much-publicized gifts? Paul Saffo, director of the Institute for the Future in Silicon Valley, comments on the charitable efforts of companies that grew from high-tech start-ups to wealthy public organizations.

CNN Chat Moderator: Thank you for joining us today, Paul Saffo, and welcome.

Paul Saffo: Thanks for dropping by!

CNN Chat Moderator: Why should those making new fortunes in the tech industries give back to the community?

Paul Saffo: Well, the world can't wait for them to give back when they are old and gray.

CNN Chat Moderator: Who are some of those who have been generous in giving back and what have they done?

Paul Saffo: Many have been generous, but the most visible have been Bill Gates and Larry Ellison. Also, the youngest were the two founders of Yahoo, who funded a professorship at Stanford. But there are plenty of individuals who are less visible and very creative.

CNN Chat Moderator: What is prompting those to give back?

Paul Saffo: They are reaching middle age and realizing that they can apply their creativity to more than making money. Historically, this generation has been reluctant to give because they wanted to wait until they could do it right. Now, thank heavens, they realize that they don't have to wait.

Question from BillyBaudBuster: What do you consider "generous?"

Paul Saffo: Good question! I think "generous" means enough that it hurts a bit, but also low enough that it becomes a habit. The important part of giving is the habit part. It has to be more than a one-time event.

Question from Gripes: How does one balance charity with agenda?

Paul Saffo: That is tricky. One person's good cause is another's hot button. For example, Bill Gates has long supported population control, but only made this giving public knowledge recently.

Question from Candyce-CNN: Some might argue that these guys give back to the community by providing jobs, products and opportunities. Why do you think it's also important for them to contribute in other ways?

Paul Saffo: Of course any responsible business gives to the community by providing jobs, but the community also returns the favor by providing employees and other resources. Giving to charity is something one does above and beyond business as usual.

Question from jthomas: Is money the only form of giving these people utilize, or are there other forms?

Paul Saffo: Good observation. The fear early on was that they would only give money, copying the pattern of giving set up by Carnegie. In fact, we are seeing some creativity beyond money. At companies in the valley, there is an emphasis on giving time too. For example, companies opting to donate a day's worth of work by their employees to Habitat for Humanity instead of doing a Christmas party.

CNN Chat Moderator: How do big companies decide where to give?

Paul Saffo: It is important to distinguish between companies and their senior execs. For example, Microsoft has long given donations as a corporation, but its execs lagged behind as individual givers. Big companies typically hire professionals to manage their giving programs.

CNN Chat Moderator: Do you think that part of the problem is that the personalities of techies tend to lean toward the young and self-indulgent?

Paul Saffo: Yes, young and self-indulgent was a problem, but only until recently, and it is only part of the story. These people felt that their money was very insecure, and could disappear at any moment, so they were reluctant to give it away. Also, they were so focused on running their companies that they had no time left over to do donations and wanted to wait until (like the nerds that they are) they could really research it! So "self-indulgent" is probably not a fair characterization anymore, though it once was.

Question from Gripes: Corporations (arguably) are more self-perpetuating than their human lead associates. I meant to ask, apart from taxation, are there or can there be any mitigating legislation that thwarts self-promotional charity (limiting the intended lucrative aspects of giving)?

Paul Saffo: As Ambrose Bierce once observed, a corporation is a vehicle for collective wealth without individual responsibility. One of the key issues of globalization is how we can promote social conscience and responsibility by MNCs. I doubt legislation will work as well as clear public sentiment that they must do more.

Question from Kelly01: Don't these companies get a tax deduction for giving, money, outdated inventory and employee time?

Paul Saffo: Yes, good point. This has been controversial. Microsoft once gave away software, claiming the deduction on the full retail value, when in fact it cost them only a couple of dollars per box to ship.

Question from Gripes: How can public sentiment drive this change (creatively)?

Paul Saffo: Well, as shareholders, we can express our opinion. As purchasers of products, we can vote with our wallets. And we can compliment companies when they do the right thing. Recall that corporate PR departments are very sensitive to public sentiment.

Question from Candyce-CNN: Does the younger age of dot-com wizards make a difference in how receptive they are to involvement in giving some of their wealth to charity than previous GMs may have been?

Paul Saffo: Yes! It affects the how of what they do. When you are 50, the tendency is to do the conservative black-tie thing. When you are 20, you think like a 20-year-old, and are less formal, more hands-on and more creative.

CNN Chat Moderator: Do you have any final thoughts to share with us?

Paul Saffo: Well, the most important thing is to remember that giving isn't only for the very rich. The most important contribution by these execs is the example they set for their employees. It is up to all of us to give, not just money, but time and creativity. Even Bill GatesŐs wealth won't solve the world's problems. But if we all participate, nothing is impossible.

CNN Chat Moderator: Thank you for joining us today.

Paul Saffo: It was nice to hang out with you all.

Paul Saffo joined the chat via telephone from California and typed for himself. The above is an edited transcript of the chat, which took place on Friday, November 24, 2000.