Corporate social responsibility and corporate philanthropy have become synonymous concepts and buzzwords in today’s business world. While these concepts are often intertwined, corporate philanthropy is used as a tool or as a compliment to an overall corporate social responsibility mandate. The benefits apparent with a commitment to social responsibility are inherently to do good, or rather less harm. However, there are more and more positive ways that a corporate social responsibility strategy can benefit business.
What is the difference? Corporate philanthropy involves monetary donations that a company gives to the non-profit or charitable sector. Corporate social responsibility goes beyond monetary exchange; while philanthropic donations can be a part of this strategy, social responsibility is typically a set of ethical commitments geared towards engaging with community in a positive way. Corporate social responsibility is the ethical stance which a company takes and how it develops a relationship with its local or global community.
What are the benefits? As we have previously discussed, the inherent benefits are an overall social betterment, however, more and more consumers look for companies that are taking ethical stances, developing solid environmental commitments and investing in social philanthropy. Social responsibility also tends to have a ‘trickle down’ effect; while participating in betting the broader global community, it can help to boost brand image and the overall perception of your company by the consumer. Investing in philanthropic projects also has a positive marketing effect; it increases brand visibility and connects your brand with meaningful charities. While the overall concept can feel overwhelming, there are some simples that your company can take to make ethical commitments towards developing a social responsibility strategy.
Small steps for implementing a corporate social responsibility strategy: