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- CSR involves objective ethical commitments that thus become an obligation for those who make them.

- CSR is manifested in the impacts generated by business activity in the social, environmental and
economic spheres.

- CSR is aimed at satisfying and informing the expectations and needs of stakeholders.

Thus, Corporate Social Responsibility is always related with the objectives and sector of activity of the
given business, being part of its market strategy, while Corporate Phylantrophy is completely not aligned
with the company’s objectives. Notwithstanding, both succeed in improving corporative image and
attracting and retaining talent to the organization, as potential employees will become interested in the
company if its social commitment is significant.

3.3 The benefits and disadvantages of Corporate Phylantrophy

There are two clear advantages of corporate philanthropy, especially on a large scale, but also different
disadvantages.

One of the main advantages companies gain from their philanthropic practices is the support of the
surrounding communities and markets. Essentially, by using the profits derived from the community to
benefit the same (customer-filled) community, businesses can significantly increase their prospects for
future revenue streams. Supporting a community can lead to greater local economic success, creating
income that can then be used in the business. For impoverished areas or those without experience with
particular products, philanthropy can be used to create a market.

This market development can also occur through improved business reputation. The goodwill that a com-
pany can generate through corporate philanthropy can increase customer interest and favorable opinions
of the company. This can lead to increased sales, especially when philanthropy is combined with effective
advertising and branding, when companies advertise mutual participation in a cause.

On the negative side, philanthropy, due to being direct or created through pure monetary donations, can
make it difficult for a company to really change what it wants to change. A donation to a nonprofit agency
can put control of funds beyond the reach of the business. There is no guarantee that the agency will help
the community or offer any of the benefits the company can gain from philanthropy.

Source: Philanthropy (Team, 2019)