Norfolk Southern sale puts major Atlanta philanthropic force in question
Shortly after the mid-November sun set on the railroad tracks running through Forest Park, a group of Norfolk Southern executives, city leaders, donors and Hope Atlanta supporters boarded a vintage railcar.
The ride, during which they were served a three-course meal, was part of a special event marking the 125th anniversary of the Atlanta-based nonprofit fighting homelessness, which Norfolk Southern has supported for more than a year.
Last month, the Atlanta-based railroad was named Hope’s “Corporate Hero of the Year.” It has donated more than $600,000 to the organization, CEO Mark George told the crowd when the event’s programming began.
But not mentioned was Norfolk Southern’s impending departure from Atlanta through a proposed acquisition by Omaha-based Union Pacific, which could make a much longer commute for future executives to support the nonprofit.
The $85 billion deal would create the country’s first transcontinental railroad company, headquartered in Nebraska. Leaders hope to file a merger application within weeks and close the deal in 2027, pending federal regulatory approval.
Though the company has vowed to retain a “core location” in the city, for Norfolk Southern’s thousands of Atlanta employees, the fate of their jobs remains unclear.
And for the many metro Atlanta philanthropic causes that have come to enjoy its support, there are also unanswered questions about how committed a company headquartered in Omaha would be to the railroad’s former Georgia home.
Treasure, time and talent
Norfolk Southern Chief Compliance Officer Angie Kolar sits on Hope Atlanta’s board. The railroad’s management committee volunteered for the nonprofit earlier this year.
“They have poured their heart, not only with their treasure, but with their time and their talent,” Hope Atlanta CEO Julio Carrillo told The Atlanta Journal-Constitution at the Nov. 13 fundraiser.
“This is an example of true leadership that they are bringing their teams to get involved with a nonprofit … and they’re investing in our community as well.”
In response to a question about the relocation, Kolar said Norfolk Southern’s engagement extends to wherever it has trains, which won’t change if a headquarters office moves.
“Obviously, there’s a lot of things that are up in the air, but there will be a presence in Atlanta for some time,” she said.
“We still operate in Atlanta. The trains still run through the city, as they have for almost 200 years. So there will always be a partnership and a part of Norfolk Southern in Atlanta.”
In a statement, Norfolk Southern spokeswoman Heather Garcia said the company has given more than $32 million to Georgia organizations since 2021.
The company is “proud of the positive impact we’ve made across Georgia and we value our longstanding relationships with the state and within our communities,” she said.
When Norfolk Southern left Virginia for Georgia years ago, community leaders in Norfolk asked similar questions about the potential philanthropic impact. The railroad ultimately committed $5 million over five years to its former home region.
But nearly $7 million of its $18.3 million in philanthropy went to the Atlanta area last year alone.
The company recently gave half a million dollars to expand the National Center for Civil and Human Rights, another half a million to grow the Atlanta Botanical Garden and $1 million to support archival work at the Atlanta History Center. It helped fund the city’s new public safety training center.
It has given $2 million to the Atlanta Police Foundation’s @Promise Youth Centers, tens of thousands of dollars for a mural at the North Avenue MARTA station and hundreds of thousands to the Atlanta Community Food Bank this year alone.
And it’s not just money.
Norfolk Southern executives like Kolar are a frequent presence on prominent Atlanta nonprofit boards, including the Woodruff Arts Center, United Way of Greater Atlanta, Atlanta Beltline Partnership, the Georgia Chamber and Junior Achievement of Georgia.
In a statement, Union Pacific spokeswoman Kristen South told the AJC the company “has always believed that communities give us a social license to operate, and our commitments to support those communities where our employees live and work are unwavering.”
But companies often see their headquarters community as a core stakeholder, said Brian Goebel, a managing director of Emory University’s Goizueta Business and Society Institute, who teaches a philanthropy class to undergraduate business students.
“It’s where their customers operate and live, it’s where their employees live and where their leadership lives,” Goebel said. “It’s something they not only want to do, but in many ways see as a responsibility of doing business.”
The scale of Norfolk Southern executives’ board participation stands out, he said. It “probably speaks to a bit more about their culture and the fact that they’re encouraging and supporting individuals to donate their time.”
And a headquarters move can indeed have an impact on giving, especially considering where employees and leadership end up being located, he said.
However, there are examples of continued strong corporate presence after relocations if a large amount of employees remain local.
Banking giant Truist, for example, remains a prominent Atlanta-area presence even after the 2019 SunTrust/BB&T merger cost Atlanta a headquarters.
Jill Savitt, president and CEO of the National Center for Civil and Human Rights, told the AJC in a statement that Norfolk Southern has been a “critical partner” since 2009 — even before it moved to the city.
But in recent years, the railroad has deepened that commitment with leadership visits.
“We don’t always have that kind of connection with our partners. At each stage of our evolution, Norfolk Southern has been there for us — both with an alignment of institutional values and with financial support,” she said.
Regarding a possible merger, Savitt said the nonprofit recognizes that “companies invest in the communities around them,” and said they hope Norfolk Southern will “continue our partnership, as it has been so close and has made such an impact.”
“We understand that needs and priorities change, but we will be forever linked to Norfolk Southern,” she said.
Atlanta Community Food Bank spokeswoman Jean Tate called the railroad a “vital and long-standing partner.”
“We look forward to continuing a relationship with the Norfolk Southern employees based in metro Atlanta.”
‘Being part of the community’
Goebel said one key question will be whether a combined company will continue the same scale of giving.
Union Pacific gave away nearly $20 million last year throughout its 23-state network.
“Will they combine forces and grow that corporate philanthropy?” he asked, or could a broader geographic reach dilute their giving?
It is noteworthy, he said, that both railroads list the same four “impact areas” for their giving: safety, workforce development, community vitality and sustainability.
At the Hope fundraiser, Norfolk Southern CEO George told the crowd he is “really super proud of being part of this company that truly believes it’s more than just about running a business, it’s really being part of the community and helping the community where you operate.”
“We do it here in Atlanta, this is where we’re headquartered, but we do it in the other 22 states as well,” he said.
Carrillo told the AJC the company has been an immense support to Hope Atlanta, and even if the merger happens “we hope that they still have a team here in Atlanta.”
“Our community needs us, and they’re doing a really great job.”
About the Authors
As a business reporter, Emma Hurt leads coverage of the Atlanta airport, Delta Air Lines, UPS, Norfolk Southern and other travel and logistics companies. Prior to the Atlanta Journal-Constitution she worked as an editor and Atlanta reporter for Axios, a politics reporter for WABE News and a business reporter for the Arkansas Democrat-Gazette.
Savannah Sicurella is an entertainment business reporter with The Atlanta Journal-Constitution.
