Differences between Corporate Philanthropy and CSR

When I first began learning about corporate social responsibility, I thought it just meant companies giving money to charities and helping out those in need over the holidays. After researching more in depth over the past few months, I discovered this is not the case. There are distinct differences between corporate philanthropy and corporate social responsibility. What are those differences?

Corporate Philanthropy 
Corporate philanthropy is when companies provide funds and resources towards social causes they feel are worthy. The way companies decide to distribute funds and resources through corporate philanthropy is typically decided by senior management. The employees are not involved, and may not even be aware their company is donating money. Another difference to note, corporate philanthropy is not typically advertised by a company. Companies involved in giving to charities and philanthropies do not want to appear as though they are bragging. With that said, the social cause receiving the donation can choose to disclose a company's generosity. Although corporate philanthropy is very generous of companies, is there a better alternative?

Corporate Social Responsibility
Corporate social responsibility is integrating responsible behaviors into a company's business for the benefit of society as a whole. This is much more than giving to a philanthropy. CSR (Corporate Social Responsibility) is a great way to get the entire company involved. Whether employees are being encouraged to lower their carbon footprint by riding their bike to work, or making more sustainable purchasing decisions, employees are engaged in CSR. As I mentioned above, it is not good practice to display corporate donations, but it is important to be very transparent when it comes to CSR. Stakeholders want to know how a company is benefiting society and what steps they are taking to improve the sustainability of our world.

Ideally, companies are involved in both corporate philanthropy and corporate social responsibility. However, involvement in corporate philanthropy and CSR can cause financial stress to a company. Companies need to wade into the water, instead of diving in. By starting off small, companies will not be at risk for backing out of socially responsible practices that have already promised to stakeholders.

What are your thoughts regarding the differences? Leave your comments below!