The luxury watchmaker marks the 40th anniversary of its international philanthropic programme by announcing the jury for its upcoming Rolex Awards for Enterprise, to be held in November, 2016. But are luxury goods and philanthropy really compatible? Rolex provides us with an answer.

We all know that it’s good to give back. And companies know that too. Rolex, for example, has been a longstanding supporter of innovation and advancing the work of those who exemplify the vision, ingenuity and excellence that also define the Rolex brand.

One way it does that is through the Rolex Awards for Enterprise, launched back in 1976 to mark the 50th anniversary of the iconic Rolex Oyster. In preparation for the 2016 edition of the awards – and to commemorate four decades of the philanthropic programme - Rolex has announced the names of the jury which will choose the 10 winners of the 2016 Rolex Awards for Enterprise. This year’s jury members include an Olympic champion, a Nobel Prize winner, an astronaut, and a celebrated underwater photographer.

Previous Rolex Awards Ceremony at the Royal Society in London. 2014 Rolex Young Laureates Neeti Kailas, Francesco Sauro, Hosam Zowawi, Olivier Nsengimana and Arthur Zang.

Having already given vital support to 130 pioneers working to make the world a better place, this year’s awards will be the most competitive and diverse to date. Of the total 2,322 people of 144 nationalities that applied to the 2016 Rolex Awards, the highest number of applicants – abut one quarter - were from Africa, a first for the programme. Laureates each receive 100,000 Swiss francs – with Young Laureates getting 50,000 Swiss francs – in order to advance their unique and socially-positive projects.

So now that we know what the laureates receive in terms of the award and notoriety, what’s in it for Rolex? Well, of course there is the satisfaction in knowing you have done the right thing in giving back to the community in some way or another. But with brands too often looking at the bottom line, can they actually benefit from their charitable adventures?

Rebecca Irvin, Head of Philanthropy, Rolex SA.

On the balance, the answer is usually “yes”. A company with a solid corporate social responsibility programme can enhance its reputation, which can then be used to establish trust and gain support from consumers, regulators, the financial community, and even employees, according Forbes. Another survey showed that up to three-quarters of executives felt that a socially-conscious company policy can actually increase its stock prices.

But for luxury-orientated companies the benefits are not always as clear. In fact, for luxury brands like Rolex, which focuses on the pursuit of “perfection”, philanthropy can actually result in negative outcomes, because it can surprisingly decrease the worth that consumers assign to their products.

Young Laureates, Rolex Awards for Enterprise from 2014. From left Francesco Sauro, Olivier Nsengimana, Neeti Kailas, Hosam Zowawi, Arthur Zang.

So maybe luxury brands like Rolex and philanthropic endeavours are not always good for business. But of course that doesn’t mean those philanthropic endeavours should stop. Rolex has proven to be a leader in that respect as well, finishing as the top watchmaker in terms of corporate social responsibility reputation.