CSR Middle East, CSR dedicated platform with 3.555 corporate members in the Middle East.
It’s hard to find a major company that isn’t talking about, writing about or reporting on how they take their corporate social responsibility seriously. However, many companies make a common mistake of misinterpreting corporate philanthrophy for CSR activities.
Here’s how to tell the difference:
Corporate philanthropy is strictly an executive decision, with only senior management deciding when and how much to donate, or to whom to award grants. Many philanthropy programs donate to specific charities or award grants to individual nonprofit groups. . It might also refer to company wide fundraising efforts or pledge drives, or to toy donation or blood donation drives, for example. The general public, and even the company's own customers, may not be directly affected.
While corporate philanthropy may be used to enhance a company's image, it is generally separate from a corporation's long-term business strategy, and has less effect on the organization's bottom line and ability to attract customers. Corporate philanthropy's primary benefit may be on creating goodwill among the community it serves.
Corporate Social Responsibility involves a clear vision that focuses on what areas a company is keen to be involved in, the kind of budgets that can be allocated ti impact this area the manner and method of getting employees involved. Unlike philanthropy, employee involvement is key to CSR. . For corporate social responsibility to succeed, every employee and every department must play a role.
Corporate social responsibility often affects a wider range of people than philanthrophy. It actually can impact the Buyer or Customer’s decision to use your company. Corporate social responsibility tells the world about a company's overall attitude toward its neighbors, customers, even the environment. For example, a company might designate a portion of all profits for charitable donations, education programs or even its own nonprofit efforts. CSR can include things like the methods a company uses to secure ingredients or materials, the way it conducts business in and with other countries or even its own employee policies.
A good corporate social responsibility program attempt to merge two goals: adhering to high ethical standards while also enhancing profits. With CSR programs, companies find a way to integrate the needs of the community with programs and features that also boost its bottom line. For example, a company may donate a portion of every item sold to a specific charity, helping the charity while simultaneously encouraging people to buy its product or service.
COOL CSR ALERTS
Nike has created a limited edition of 1500 pairs of the make believe shoes seen in the Back to the Future movies that will be sold on eBay to support the Michael J. Fox Foundation.
According to Edelman’s 2010 Goodpurpose Study, 67% of consumers say they are more likely to buy products and services from a company if they know it supports good causes,up more than 11% from the year before.
CSR is playing a central role in helping corporations to be seen as leaders. Astute corporations are allocating increasing internal resources to CSR investments that feature clear objectives and deliver measurable social outcomes.