Corporate America Passes on Partying

BOSTON (TheStreet) -- Coca-Cola's(KO Quote) North American employees received an e-mail message saying the company would be making a donation to hunger-relief charity Feeding America instead of throwing a holiday party.

It's the second year in a row that Coke has opted out of paying for a holiday party, an increasingly common choice among corporations in these cash-strapped times. (Coca-Cola is allowing workers to host potluck lunches in their departments.)

In its annual survey of 100 human-resources executives, outplacement firm Challenger, Gray & Christmas reports that 62% of companies are planning holiday parties, down from 77% last year and 90% in 2007. Ten percent of companies that held parties last year are canceling them this year for budgetary reasons.

Cisco(CSCO Quote) did away with holiday parties nearly a decade ago. To celebrate the season and the company's 25th anniversary, Chief Executive Officer John Chambers on Dec. 10 will challenge employees to donate four hours of community service. Bank of America(BAC Quote) won't be throwing a party, either. "Individual lines of business or staff groups may organize initiatives to benefit local charities," spokeswoman Kelly Sapp says.

Of companies that do plan to party, 29% will spend less than they did last year, according to the Challenger, Gray & Christmas survey. Only 36% plan to hire a caterer, event planner or any other outside services, down from 57% last year and 69% in 2007. (On the other hand, in the spirit of beer-goggling the economy, 57% of those companies plan to serve alcohol this year, a spike from 48% last year and 46% in 2007.)