Recently, I read an article by Edward J. Larson in the Harvard Business Review. In this piece, he argues for the need to increase corporate social responsibility. The author rightly points out that corporations have an interest in promoting social responsibility on the part of businesses because doing so will create a higher profile, making it easier for businesses to seek funding from various philanthropic groups. Further, the philanthropy is likely to produce tangible benefits to the company. Therefore, increasing corporate social responsibility through programs like corporate social responsibility planning could not only provide additional funding to organizations, but also positive long-term effects.
Larson also makes a number of excellent recommendations for corporate social responsibility planning, one of which is providing support for small businesses. As he notes, “There are limited opportunities today for smaller firms to engage in social responsibility.” He goes on to explain that it’s important for philanthropic agencies and organizations to find ways to support these firms. The reality is that most such philanthropies fail because of lack of effective communication between the business and the organization. Businesses need detailed reports detailing their social responsibilities and how they will be accomplished.
There are many issues that must be addressed when it comes to corporate social responsibility. First and foremost, Larson recommends that companies provide an annual social responsibility report that clearly outlines their social policy objectives, programs, and initiatives. He goes on to point out that these reports should detail both short-term and long-term goals, and timelines for accomplishing them. He further recommends that companies detail how their activities support local, regional, and global communities. Finally, he encourages business to consider how their products and services can help people. He recommends providing examples so that customers can see how these actions enhance the company’s bottom line.
Larson stresses that the corporate social responsibility report should not just be a marketing or public relations ploy. Rather, it should be a legitimate assessment of how each company has fulfilled its obligations in terms of its social responsibilities. Additionally, he argues that corporate social responsibility should be measured not by the amount of funding given to it, but rather the number of employees dedicated to these activities.
Corporate social responsibility does not only apply to businesses that have been involved in charitable activities in the past, but also those that are planning to participate. He points out that non-profit organizations frequently receive generous funding from both governmental and private sources. These sources then use the money to support their programs and activities. Unfortunately, not all businesses will openly discuss how their philanthropic giving works or what programs and activities they plan to participate in. This can lead to confusion for businesses and potential philanthropists, which can undermine their own efforts to participate.
Unfortunately, some businesses choose not to participate in philanthropic endeavors simply because they do not feel that they can separate themselves from the business and its products. However, it should be noted that philanthropy is not just about giving to charity. The true goal of philanthropy is to ensure that a business does its part to improve the world. Participating in a charitable event can give a business an opportunity to demonstrate its commitment to social change, as well as generate media coverage highlighting its contributions.
Another concern for some businesses when it comes to corporate social sponsorship is the perception that a business is using the funds for its own benefit, rather than providing funds that would help a charity. However, as previously mentioned, many businesses consider supporting a charitable organization after they see how the funds will be used. In addition, charities typically provide training for those who participate, which can benefit the business as well. As a result, these participants often receive raises and other perks from their employers, which can make corporate social sponsorship quite valuable for small businesses.
One of the primary benefits of corporate social sponsorship is that it allows a business owner to expand into a regional community, providing employment for local people and boosting the economy. When a business chooses to participate in a charity event, it demonstrates its commitment to the community and shows that it cares about the lives of others. A business that has contributed towards a charity event can greatly improve the community’s economy by attracting new residents and new businesses. A business’s philanthropy can be nearly double that of a traditional non-profit organization, resulting in a significant impact on a charity’s services and programs. Indeed, corporate social sponsorship is a key factor in any successful and effective charitable organization.