CSR vs Donation

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 distinctionCSR in IndiaDonation
 MeaningTargeted social spending for a particular project under Schedule VII of the Companies Act, 2013Merely a cheque issuing activity with the intent to do good
 NatureMandated by law in IndiaVoluntary act and personal decision
 TypeNot only financial in nature but also involves time and resourcesUsually in the nature of financial contribution
 DonorEligible companies as per the Companies Act, 2013Usually individuals and private organizations
 ScopeBroader scope as it addresses the overall attitude of an organisation towards its stakeholders and the society at largeNarrower and more limited scope with a focus on addressing a specific problem Eg: Disaster relief
 FundingFunded through resources of the businessFunded through private donations
 FrequencyOngoing processMay or may not be recurring in nature
 InvolvementHands-on approach to solving social and environmental issuesSimple 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.

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