Corporate Social Responsibility (CSR) and Donation are two different concepts, although they are both aligned towards meeting a common objective of doing social good.
CSR refers to the efforts made by a company to address social, environmental, and economic issues that affect its stakeholders, including employees, customers, suppliers, and communities. It is an ongoing commitment that companies make to operate in a way that benefits society as a whole, while also taking into account their impact on the environment and the local communities where they operate.
Donations, on the other hand, are monetary or non-monetary contributions to support specific causes or organizations. Donations can take various forms, including cash donations, in-kind donations, sponsorships, and volunteer work.
While they share similarities in terms of their goals, there are significant differences between the two approaches in the context of philanthropy in India:
|Point of distinction||CSR in India||Donation|
|Meaning||Targeted social spending for a particular project under Schedule VII of the Companies Act, 2013||Merely a cheque issuing activity with the intent to do good|
|Nature||Mandated by law in India||Voluntary act and personal decision|
|Type||Not only financial in nature but also involves time and resources||Usually in the nature of financial contribution|
|Donor||Eligible companies as per the Companies Act, 2013||Usually individuals and private organizations|
|Scope||Broader scope as it addresses the overall attitude of an organisation towards its stakeholders and the society at large||Narrower and more limited scope with a focus on addressing a specific problem Eg: Disaster relief|
|Funding||Funded through resources of the business||Funded through private donations|
|Frequency||Ongoing process||May or may not be recurring in nature|
|Involvement||Hands-on approach to solving social and environmental issues||Simple contribution of money or items|
While both CSR and donations aim to create a positive social impact, CSR is a more comprehensive approach that involves integrating social responsibility into a company’s core business strategy, while donations are more focused on providing financial or other types of support to specific causes or organizations.
In summary, CSR is a long-term commitment to operate in a socially responsible manner, while donations are a way to provide support to specific causes or organizations. Both approaches, with their own unique strengths, aim to create a positive impact on society.