It is important to note that CSR and corporate philanthropy are not synonymous. CSR is broader in scope and encompasses many ways that corporations contribute to social good, one of which is corporate philanthropy. Where corporate philanthropy seeks to address social change through the allocation of time, financial, and other resources, CSR takes the practice one step further to strategically align philanthropic efforts with business objectives (Lazarri, 2018).

Definitions and models attempting to explain the CSR phenomena have evolved significantly over the years. Early analysis focused on the obligation of businesses to consider how their decisions impact surrounding communities and meet public expectations (Davis & Blomstrom, 1966). Archie Carroll’s (1999) CSR Pyramid sought to reconcile four categories of business responsibilities — economic, legal, ethical, and philanthropic — stating that organizations’ philanthropic responsibility didn’t begin until profitability occurred. Newer models attempt to situate CSR and market value within a single conceptual framework (García-de-Madariaga & Rodríguez-de-Rivera-Cermades, 2010).

Another recent approach by Tracee Keys, Thomas Malnight, and Kees van der Graaf (2009) is to use McKinsey & Co.’s matrix, which pinpoints CSR’s primary objective: to align successful business practices while pursuing benefits to society. Ultimately, this model leads to “strategic” CSR that results in high benefits for society and for business, recognizing that organizational practice’s range and subsequent benefits to society and the organization also vary accordingly.

The matrix demonstrates that some efforts have a higher benefit to society than to business. At the low-impact, “pet projects” level, employees may ask those in the workplace to adopt a family during the holidays. More significant giving occurs in “philanthropy,” where the organization may identify a charitable cause to support throughout year. These examples could be classified as corporate philanthropy.

Read the full article about corporate philanthropy by Patty Janes and Olivia Rau at Johnson Center.