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Corporate social responsibility (CSR) is the common term used to describe steps taken by pro-profit businesses to appraise and take responsibility for the company's impacts on environmental and social wellbeing. CSR consists not only of corporate donations to charity, but also employee engagement, environmental issues, and corporate governance. Numerous studies have shown that clients prefer to patronize businesses that show social responsibility.
When it comes to corporate donations to charity, corporations give in several ways, including grants or cash donations, cause related marketing,in kind gifts,sponsorships,and pro bono services.Companies also love to promote workplace donation through employee matching gifts programs and other endeavors that motivate their employees to give their money and/or time to charity.
Grants or cash donations are often distributed either through a company-sponsored foundation or directly through the company via a corporate giving program.
Some companies have both. The corporate giving program gives them more caution about how much to give and who to give to, since it is not subject to IRS foundation obligations. A company could also give through a donor-advised fund or organize a public charity. How a corporation arranges its giving is principally determined by tax and legal factors that cannot really impact donors.
Grant seekers should always remember when approaching corporations that, unlike foundations, they don’t operate to give away cash. Many often look to benefit in some way from their philanthropic activities. A proposal to this type of funder should highlight how funding for your project will help the company achieve its own goals.
Corporate donation is motivated by a combination of self-interest and altruism. Most companies tend to prefer:
While many individuals enjoy the glow of being a good corporate citizen, some companies are careful about revealing too much information about their philanthropic activities, to avoid:
While giving $100 to your precious charity or volunteering to help at a homeless shelter will make you feel good and provides a classical example to others in your neighborhood, there is a practical limit to the social impact and the long-term benefits we can all personally have on our neighborhood through giving.
But when hundreds or thousands of people come together and organize their giving, as occurs during a well-planned corporate giving campaign, formidable and lasting good can be done for the community. This impact is further enhanced as the corporate social responsibility program continues over months or years.
Beyond the gain to the community, nonetheless, charitable donation provides essential benefits to the business itself as well, both externally and internally.
When a company creates a corporate charity event, they will start to see positive results in the commercial world almost instantly in various ways:
The gains of a corporate charitable donation program are not only limited to external results:
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