The same thing that gives any person the right to do whatever they want with their money. Contrary to popular belief, companies don't have the obligation to restrict themselves to a particular business nor do profitable things. They can donate the amount they want to the charities they want. If, as a shareholder, you don't like it, vote the board of directors out.
> Also I'd imagine the only reason any major company donates to charity is to strengthen its brand in some way.
Not everybody who bites their nails does so because they are sexually repressed. Not every bourgeois makes organized and self-conscious efforts to push down the workers' revolution. Not all people feign compassion and altruism, but are just jealous of the strong-willed nobles.
The way I see companies is a machine that is specially built to accomplish a specific purpose or purposes.
A public company is usually not one person's property so what charities its assets go to support should not be dictated for the shareholders by giving to one specific charity. This would be underutilization of its assets if it were donated because a company usually isn't formed for the purpose of handing out money
In other words, why not leave the company to do what it's best at doing and let its shareholders who profit off the company donate or utilize the profits as they see fit. If a company chooses to donate to Red Cross for no specific practical business reason then it is essentially robbing a shareholder the right of choosing to donate his share of the profits to another charity, or of his right to spend it on strippers.
Unless the company is donating to further its goals (such as enhancing corporate image or brand), I do not see a place or purpose for arbitrary corporate charity.
The 1% equity however can be seen as a contribution from the founder's personal shares, but even then it makes little sense to commit to that early on vs later on especially if the founder plans on not failing.
> Also I'd imagine the only reason any major company donates to charity is to strengthen its brand in some way.
Not everybody who bites their nails does so because they are sexually repressed. Not every bourgeois makes organized and self-conscious efforts to push down the workers' revolution. Not all people feign compassion and altruism, but are just jealous of the strong-willed nobles.