We've mentioned the impact that CSR has had on businesses in recent years. This includes a more conscious effort to better society as you grow as a business. No longer is the sole focus on generating profits as a business. This has spread to all facets of Corporate Social Responsibility, including the element we'll be highlighting today, Philanthropic Responsibility.
What is Philanthropic Responsibility?
The wider impact that a business has on society effects their philanthropic responsibility. Taking the initiative to give back to the community that has served them by way of providing a workforce, customers & beyond.
Philanthropic Responsibility goes past the stages of legal requirements or trading standards. The actions you undertake, regardless of whether they're forced upon you by law make the difference. Consider examples such as investing in greener energy, volunteering your time as a business, charitable donations or fundraising. All of which can show your commitment to Philanthropic Responsibility.
Why is Philanthropic Responsibility Important for Business?
Showing your commitment to society is important for several reasons in business. Initially, rather than simply stating you care about stakeholders but showing you care are two very different things. Being able to prove you've delivered some form of time, effort or money can help build the positive reputation you hold in the local community. Create a more future-proof environment for future generations, investing in the planet & its' inhabitants. With all of the above, you may well attract more prospective customers & workforce.
How does Philanthropic Responsibility tie into Corporate Social Responsibility?
Philanthropic responsibility is just one aspect of corporate social responsibility, a term we've explored in detail in a previous blog. CSR is a concept, created to encompass economic, social and environmental issues. Corporate Social Responsibility involves a business taking responsibility for its' impact on the environment & society it operates within, while striving to make a positive contribution to both.
Philanthropic responsibility is often seen as the highest level of "CSR". It involves going above and beyond what is legally required as a business, meanwhile making a voluntary contribution to society. As has been mentioned here on the Spicers of Hythe blog this is what makes CSR such a differentiating factor. The fact there is no compulsory guideline too engaging in philanthropic responsibility, it is completely up to the organisation. However, philanthropic responsibility cannot be viewed in isolation from the other aspects of CSR. For example, a business cannot be considered philanthropic if it is engaging in environmentally damaging practices or exploiting its employees.