There are plenty of ways companies can give back to their community and the world. Two main areas many tend to focus on is corporate philanthropy and CSR (corporate social responsibility). Did you know that both terms are different even though they tend to overlap in execution? Let’s take a look at the differences between the two.
Corporate Philanthropy
Philanthropy on any level is a way to bring social change by donating funds and sometimes time. CEO Magazine describes a philanthropist as a “capitalist in the not-for-profit sector.” Investments made by philanthropists are either completed by sharing time, knowledge, or donating a portion of their wealth. Corporations do the same thing; they look to find long-term solutions to issues in any number of areas like homelessness, disaster relief, education, and world hunger.
It’s not uncommon for companies to have entire departments dedicated to philanthropic efforts. They will work to partner directly with a cause or donate to a number of them. Involvement depends on the corporation, but, many times they choose to support from a distance. Just as an individual philanthropist will want to check-in on progress made, a large company will as well. Companies like to see the impact their contributions made for a specific cause, but they typically won’t get more involved than that.
Corporate Social Responsibility
CSR or corporate social responsibility is a hands-on approach to giving. Companies that practice CSR will design their business model or practices with a specific cause in mind. They will work directly with the surrounding community to help with specific causes. According to Chron “CSR means that the corporation is working to mitigate potentially negative effects on the community and also to solve for the effects it has socially, environmentally and on general public health.”
A good example of this is a large chain restaurant helping the fight against hunger and food waste. The company may set up a program to feed those in need throughout the community by providing free meals or bringing meals to the hungry. CSR programs are directly involved with the programs working to combat social issues. It shows that corporations care about the problems they create from everyday practices.
