Charity, sponsoring, or CSR?
Corporate donation is associated with a financial contribution by a corporation to another organization or individual. The aim is to support the donor in achieving a shared purpose. For Americans, for example, the biggest success and coolness indicator is how much taxes you pay and how much you donate yearly.
A moral case accompanies the donation – whether it should be public or not. Some corporations believe it is better to do charity anonymously and not talk about it. On the other side is the theory that doing good and talking about it calls for more good and expands it. In this way, you encourage other corporations to follow your role model.
By all means, trusting the donor will manage your money well is crucial. You will look into the financial reports, check the progress and evaluate the real contribution, not just throw a colossal amount of resources at some cosy-sounding fund.
Examples of corporate donations are filling in an account for a sick person or investing in educational centers.
Sponsorship is mainly a paid presence. The support may be not just financial, but in most cases, that is what it is – at least partly. The activity is managed by another company. The idea behind sponsoring is to find a proper event or place with a concentration of your target groups and to show them the best possible side of your brand.
For example, if you are a mineral water bottling company, provide your product to an economic forum. Thus, you will literally satisfy one of the most basic needs of people. And your logo will be everywhere. Read more sponsorship options in our next blog post.
CSR (Corporate Social Responsibility) is targeted at significant public causes and usually has a longer-term effect. When a company engages with CSR, it can recognize how corporate actions improve society and the environment in a sustainable way. This self-regulating business model is a great way to raise ethical standards in the workplace. For a company to be socially responsible, it must first be responsible for its shareholders and employees.
CSR is first and foremost a strategy of large corporations. Besides, the more visible and successful a company is, the more it focuses on values as a driver for responsible action. Yet, small and mid-sized businesses also establish social responsibility programs. But they are narrow-promoted due to limited ad scope. In social responsibility activities, your company is much more involved. It leads the whole process – either on its own or in alliance with partner organisations.
An example of CSR can be the social integration of refugees or other minority groups through special employment programs; initiatives for reducing the impact of plastics on the environment. CSR is also to organize the children of company’s employees to visit the workplace of their parents to learn more about their professions – like the Bulgarian Network of UNGC has been doing for years.