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WE Charity, an international charity to support that was founded by Marc and Craig Kielburger in Toronto Canada was once held in such high regard with corporations rushing to have the brothers shout their sponsors and supporters. That all changed in late June as it was revealed that the federal cabinet lead by Justin Trudeau selected WE to administer a payment program for the Canada Student Service Grant program, a $900 million volunteer program, for a contract worth $19.5 million. This news had raised questions as to the nature of the purity between the WE Charity and the Trudeau family and potential conflicts of interest and why the federal public service could not administer the funds as part of their regular mandate.
Corporations distance themselves from sponsoring We Charity
This of course has sent many corporations that have been sponsors of WE into a panic and have caused many to re-position their alliance with the charity. Corporations who have severed or paused their working relationship with WE Charity include KPMG Canada, Telus [TCO], Virgin Atlantic Airlines, Royal Bank of Canada [TCO], Loblaw Companies Ltd., GoodLife Fitness, WestJet, DHL, with more to part ways in the coming weeks.
Consumers buy from brands they trust
Brand association has become a critical part of sponsorship programs as more consumers are looking to spend their money with companies they deem to be ethical.
What is next for WE Charity?
WE Charity has announced it will be cancelling its activities for “foreseeable future,” as they announced plans to move back to international development work. There is no doubt job loss will also result from the WE charity scandal.
Story continues to unfold…