Corporate Social Responsibility & Philanthropy

This assignment delves into the concept of corporate social responsibility (CSR), examining its key components such as moral values, business ethics, and environmental concerns. It emphasizes the role of philanthropic activities as an integral part of CSR, highlighting the benefits organizations gain from engaging in socially responsible practices. The assignment encourages a utilitarian approach to philanthropy, considering both the costs and benefits involved in contributing to nonprofit causes. It also underscores the positive impact of CSR on organizational reputation and image within society.

Running head: FINANCIAL, SUSTAINABILITY AND INTEGRATED REPORTING
Financial, Sustainability and integrated reporting
Name of the university
Name of the student
Authors note

1
FINANCIAL, SUSTAINABILITY AND INTEGRATED REPORTING
Introduction:
Corporate social responsibility and corporate philanthropy are closely related concepts
and philanthropy is a part of social responsibility of business or organization. Both the concept
have the potential of creating positive impact on the overall performance of company. A
corporate social responsibility (CSR) is a program that is built by company based on shared
experience. Corporate philanthropy is the dimension of corporate social responsibility
(Kozlowski et al., 2015).
Discussion:
The concept of corporate social responsibility can be referred to as voluntary soft
regulations that organizations adopt for improving several aspects of company such as issues
relating to environmental, labor and human rights. There exist ambiguity in defining the
corporate social responsibility concept despite several efforts to bring an unbiased definition.
Employment of programs of corporate social responsibility is about companies taking actions
and having responsibilities that is beyond their economic, business and legal obligations. On
other hand, one of the specific type of activity involved in the CSR program of business is
corporate philanthropy. It is the actions on part of corporations donating resources and profits to
nonprofit companies. Corporate giving or philanthropy can either be done through corporate
foundation or handled directly by corporation (Beare et al., 2014).
Philanthropy is the primary and first CSR activity of many organizations and the
charitable actions is done using corporate resources for engaging in activities such as charitable
activities and donations and voluntary working by engaging personnel. Such activities does not
seek any direct benefits to business and they take place outside the immediate business of

2
FINANCIAL, SUSTAINABILITY AND INTEGRATED REPORTING
organization. However, organizations or corporation are able improve their reputation by
minimizing invasive public policy. Employment of activities of corporate social responsibility
leads to collaboration and integration of shareholders with other group of stakeholders for
building credibility, managing potential risks and trust creation in society. Philanthropy is
considered as social and voluntary dimension of CSR activities as these activities are not
prescribed by laws and it is more a voluntary actions of organization.
CSR is understood by business activities that helps in addressing philanthropy that can be
a source for non-government organization. From the perspective of company, philanthropy is
about donating charities that leads to taking efforts for assisting distressful people by funding
them. Some of the example of corporate philanthropy involves donating funds or money to
orphanages, charities, old age homes, financing clothing and food to people hit by Tsunami and
to countries that are hit by natural calamities.
CSR activities adopted by organization is about the integration of economic, social and
environmental considerations into the processes and decision making structures of business.
Employment of such programs helps in producing direct benefits for the bottom line. Some of
the examples of CSR activities of organization is recycling of materials and reduction of waste.
An organization can have economic and environmental benefits simultaneously by adoption of
co efficient actions (Ioannou & Serafeim, 2014). This would help in generating positive
profitability by contribution to stronger financial performance.
Organizations are able to derive ample benefits for engaging in CSR activities. Such
benefits involves development of better relations with stakeholders and communities, improved
branding, innovation and productivity. CSR is becoming part of strategic behavior of
increasingly small, medium and corporations operating at international level. Organization

3
FINANCIAL, SUSTAINABILITY AND INTEGRATED REPORTING
should not behave in a socially irresponsible way by dumping waste and chemicals into water
bodies and creating pollution. The factor at core of CSR activities is performing business in an
ethical and legal way.
With regard to the concept of philanthropy, there are two types of such activities that is
traditional philanthropy and strategic philanthropy. Former involves organization to devise and
set strategy and outcome measurement in relation to company’s interest (Milne & Gray, 2013).
On other hand, strategic philanthropy is designed in such a way that it taps company’s expertise
and bringing specialized knowledge to company.
Carroll’s social responsibility pyramid:
(Source: Carroll et al., 2016)
An organization can be called socially responsible if all the four level of responsibilities
are met that is philanthropic responsibilities, ethical responsibilities, legal responsibilities and
economic responsibilities. Philanthropic responsibilities of corporations is on the top of pyramid

4
FINANCIAL, SUSTAINABILITY AND INTEGRATED REPORTING
and according to this pyramid, every organization should incorporate philanthropy in their
business policy as a part of their responsibility towards serving wellbeing of community. Nature
of philanthropic activities is discretionary or voluntary in nature (Janek et al., 2016).
Participation in such activities are guided by desire of business activities to engage in social
activities. For fulfilling perceived philanthropic responsibilities of organization, an organization
or corporation engage in variety of giving activities such as service and products donation,
gifting monetary resources, community development, volunteerism by management and
employees and other contribution to the group of stakeholders that make up the community.
Most of the times, business engage in philanthropic activities for augmenting reputation of their
business and sometimes it is a utilitarian decision. Establishment of philanthropy as a part of
strategic activity of company in socially responsible framework provide organization with
immaterial importance, valuable and competitive advantage. Competitive position of
organization is ensured by building reputation and image of company by performing
philanthropic activities and overall activities of being corporate socially responsible (de Villiers
& Maroun, 2017).
For promoting the aspects of being socially responsible and contribution of incorporating
philanthropy, it is required by organization to explore more as it is depicted by trends that profit
of organization is increased by social responsible economy.
Conclusion:
Corporations has the responsibility towards serving community and society besides
thinking about probing return to shareholders and creating satisfaction for customer and
employees. Some of the integral part of corporate social responsibility involves moral values,
business ethics and environmental concerns. Philanthropic activities forms the integral part of

5
FINANCIAL, SUSTAINABILITY AND INTEGRATED REPORTING
organization being socially responsible. When an organization decides to contribute for any
nonprofit cause by engaging in philanthropic activities, utilitarian calculation should be done by
making comparison of benefits and cost of decision (Kozlowski et al., 2015). Social
responsibility of organization can be met through philanthropic ventures that would help in
enhancing reputation and image of company.
References list:
Beare, D., Buslovich, R., & Searcy, C. (2014). Linkages between corporate sustainability
reporting and public policy. Corporate Social Responsibility and Environmental
Management, 21(6), 336-350.
Carroll, R. J., Primo, D. M., & Richter, B. K. (2016). Using item response theory to improve
measurement in strategic management research: An application to corporate social
responsibility. Strategic Management Journal, 37(1), 66-85.
de Villiers, C., & Maroun, W. (Eds.). (2017). Sustainability Accounting and Integrated
Reporting. Routledge.
Ioannou, I., & Serafeim, G. (2014). The Consequences of Mandatory Corporate Sustainability
Reporting: Evidence from Four Countries. Harvard Business School. Working Paper, 11-
100, August 20, 2014. Retrieved July 12, 2016 from http://www. hbs.
edu/faculty/Publication% 20Files/11-100_7f383b79-8dad-462d-90df-324e298acb49. pdf.
James, M. L. (2015). THE BENEFITS OF SUSTAINABILITY AND INTEGRATED
REPORTING: AN INVESTIGATION OF ACCOUNTING MAJORS'PERCEPTIONS.
Journal of Legal, Ethical and Regulatory Issues, 18(1), 1.

6
FINANCIAL, SUSTAINABILITY AND INTEGRATED REPORTING
Janek, C., Riccerib, F., Sangiorgia, D., & Guthrie, J. (2016). Sustainability and integrated
reporting: A case study of a large multinational organisation.
Kozlowski, A., Searcy, C., & Bardecki, M. (2015). Corporate sustainability reporting in the
apparel industry: an analysis of indicators disclosed. International Journal of Productivity
and Performance Management, 64(3), 377-397.
Milne, M. J., & Gray, R. (2013). W (h) ither ecology? The triple bottom line, the global reporting
initiative, and corporate sustainability reporting. Journal of business ethics, 118(1), 13-
29.