Corporate Philanthropy Definition Corporate philanthropy is the act of a corporate or business promoting the welfare of oi generally through charitable donations of funds or time. ar Q. What are the benefits of corporate philanthropy? Ans: Corporate philanthropy helps support communities where companies are based, It supports corporate giving programs, which essentially lead to free money for nonprofits. Q How can corporate philanthropy help nonprofits? Aas: Corporate philanthropy helps nonprofits through various methods of support, such as Corporate matching gift programs and volunteer grants. The impact of donations and volunteering for nonprofits can be drastically increased with the help of corporate programs. Q. How can corporate philanthropy help businesses? Ans: Corporate philanthropy fosters employee engagement and generates business value, When businesses participate in corporate philanthropy, they are creating a positive public image with consumers, and creating a positive work environment. Q. What is the difference between corporate philanthropy and corporate social responsibility? Ans: While they may seem similar, corporate social responsibility describes the overall attitude of an organization toward society at large, while corporate philanthropy is a narrower form of corporate social responsibility. Types of Corporate Philanthropy 1. Matching gifts and Volunteer Grants Matching Gifts: Matching gifts are the most popular form of corporate philanthropy. ae ith atching-giit programs donate the same amount of money (or double or ce i a ‘to the same nonprofits that their employees do common parameters set ed e employee eligibility (e.g. only full-time employees), nonprofit peer oe ass institutions) match ratio (¢.g. 1:1 or 2:1) maximum and ca Rat a. uifts of $50- $2000) and deaclines (eg one year afer minimum donations mé the donation). .d only to matching gifts in popularity. i are second only < (b). Volunteer Grants: Syosset a match employee's volunteer hours with These corporate philanthropy program:Relationship of CSR with Corporate Sustainability Q. What is Corporate Sustainabi Ans: The term “corporate sustainability” describes a new corporate mans also fall under the broader term “environm Fee eet eeinent iota: Ik eat nental social governance” (ESG). Corporate sustainabili i op ity emphasizes growth and profitability through intentional business practices in three areas of society. Th i a » The goal is to provide long-ter a without compromising people, the planet or the economy ities” Let's dive deeper into the three pillars of corporate sustainability 1. a ENVIROMENTAL PILLAR: The environmental pillar is often the most talks: about of the three pillars of corporate sustainability. It includes the various actions companies can take to reduce their environmental impact and carbon footprint. Examples include reducing packaging waste, reducing water usage, recycling materials and using sustainable energy sources. 2. THE SOCIAL PILLAR: The social pillar focuses on « company seeking the approval of its stakeholders, employees and the local community. A big part of corporate sustainability is a company’s dedication to taking good care of people inside and outside of the business. Social pillar practices include eliminating child labour, offering paternity and maternity leave and giving back to the community. 3. THE ECONOMIC PILLAR: The economic pillar involves implementing sustainable business practices to promote long term profitability. After all, a company can't have a positive impact on the environment or community if it’s not profitable. Elements of the economic pillar include compliance and good corporate governance. Meaning, the values of stakeholders and management align in terms of how to spend resources. The economic pillar makes it possible for a company to strategize and invest in new corporate sustainability methods. All that said, no one pillar should overshadow caught trying to cut corners and increase profits unethically. the others. Otherwise, businesses get Q. What is Corporate Social Responsibility? Social Responsibility (CSR) is a broader cone: table — to itse sept than corporate sustainability. In een Jf, its stakeholders and the public.” short, “CSR helps a company be socially accoun4 company that engages in CSR operttes in a way that enhances a globally, CSR isa long-term strategy that is never temporary and always evoly; eth gxample sells ethically sourced coffee and happily promorss lis Global faces Starbucks also developed a ground breaking college achievement vg ement : employees, nt plan designed exclusively for GSR his mile facets and not ell organizations can invest inal of ee invest in every initiative possible, Start small by making chat pate Poe ity focus on helping companies run in a wa ‘ yy that allows them to be ethically profitable — never at the expense of others. Both CSR and corporate Sustainability help companies make a positive impact on thove ‘around them. Differences between Corporate Social Responsibility & Corporate Sustainability Below are the three main differences between CSR and Corporate Sustainability. 1. VISION © CSR often looks backward and reflects on what a company has done to contribute to society. * Corporate sustainability looks forward and develops a sustainable strategy for the future. 2. TARGET © The targets of CSR initiatives are often opinion formers (e.g., media, poli and pressure groups). © Corporate sustainability looks at the whole value chain (je., everyone from end- consumers to stakeholders). 3. MOTIVATION e The motivation and driving force behind CSR initiatives is to protect a company’s reputation. ; : a, For corporate sustainability, the drive has more to do with creating ne opportunities for emerging markets.Renetinn, Accommodation Recah Social, espowib didi, we sanbonse to pressure Toke the diniholwe + eolablish a posihive 3. Carroll Model (1991) Bea good global Qo whak in desned by ee Bbak_ ghuehaldors Philandhropic . Pespensibitity Be ethicol Do sha in erbedied by Yoook Stokeheders Bo whak io required Pod cofitabinn, * Philanthropic requirements: Donation and gifts helping the poor. It ensure goodwill & social welfare. Ethical responsibility: Follow moral & ethical values to deal with all the stakeholders. Economic responsibility: Maximize the shareholders value by paying good return. © Legal responsibility: Abiding the laws of the land.Binomeiah Capo 7. New Model of CSR Strong 8 Poor CSR(-) | Codes and Standards on CSR 1, Universal Declara ion of Human rights: Adopted by United Nations, this declaration paved way for many intemational human rights standards for all sectors entities. 2. UN Global compact: An international multi-constituent, voluntary initiative based on internationally accepted ten principles in pursuit of a more sustainable inclusive global economy. The ten principles covers human rights forced labour, child labour, environmental challenges and responsibility, non-discrimination, freedom of. associations, collective bargaining, corruption, ete. 3. Global Reporting Initiative (GRD: Since its founding in 1997, the GRI has been addressing the need for standardized approaches to corporate sustainability reporting. In 2006, GRI published Version 3.0 (G3) of its Sustainability Reporting Guidelines emphasizing performance indicators, which contain a separate section titles “Human Rights” with nine performance indicators. 4, Organization for Economic Co-operation and Development (OECD): OECD guidelines contains recommendations on core labour, environmental standards, human rights, competition, taxation, science and technology combating corruption and safe guarding, consumer rights. 5, Social Accountability $000: ‘SA 8000" standard for social accountability, created in 2000 by the Council on Economic Priorities Accreditation Agency (CEPAA). SA 8000 developed by an international coalition of businesses, trade unions and non- governmental organizations (NGOs) on the basis of International Labour Organization (ILO) conventions — the Universal Declaration of Human Rights and the UN convention on the rights of the child. The SA 8000 code of practice is broken down into nine key areas child labour, management systems, working hours, compensation, disciplinary practices, foreed labour, health & safety, freedom of association & collective bargaining and discrimination.