Corporate Social Responsibility & Your Nonprofit

Also referred to as CSR, corporate social responsibility is an increasingly popular trend among businesses to conduct their affairs in a way that ultimately benefits society as a whole. And in many cases, organizations like yours can also be key players.

So what exactly does that mean for you as a nonprofit leader? How can your team make the most of corporations’ growing interest in social good? We’ll answer these questions and more in this guide.

Let’s dive in with the basics.

What is Corporate Social Responsibility?

The term “corporate social responsibility” refers to the voluntary actions and practices a company takes to improve its overall positive impact on society.

This is above and beyond what is required of a business by law⁠. Instead, it’s used as a way to give back to the greater communities it serves.

Types of CSR

Corporate social responsibility can take on many different forms, and participating companies typically incorporate multiple types of initiatives in their overarching business strategies.

These include the following…

Environmental Responsibility

Environmental or sustainability responsibility has to do with a company pursuing sustainable practices that reduce its negative impact on the environment. This might include:

Conserving energy
Reducing waste and emissions
Using renewable resources
Prioritizing eco-friendly products
Supporting environmental nonprofits

Environmental CSR continues to grow in importance to businesses, their employees, and their consumers⁠—especially as the understanding of detrimental human activities on the environment develops.

Ethical Responsibility

Ethical responsibility involves a company ensuring its practices are up to ethical and moral standards. For example, this could mean:

Providing fair employee wages
Ensuring safe working conditions
Partaking in diversity and inclusion efforts
Maintaining compliance with legal and regulatory requirements
Producing high-quality goods and services
Supporting social good causes and organizations

This type of CSR is essential for ultimately creating an overall fair and just society. By taking on ethical responsibility, businesses can contribute in real and tangible ways.

Philanthropic Responsibility

Philanthropic responsibility typically involves companies giving back to the communities in which they operate. This might include:

Providing monetary donations to charitable causes
Offering in-kind gifts of goods or services to nonprofit groups
Sponsoring nonprofit or fundraising events
Hosting company-wide volunteer experiences with local organizations
Establishing workplace giving programs that encourage employees to give back

This tenet of CSR is what ultimately produces corporate philanthropy, or “the act of a corporation or business promoting the welfare of others, generally through charitable donations of funds or time.” And when corporate social responsibility is considered, this is what often comes to mind!

Economic Responsibility

Finally, economic responsibility involves a company balancing its profitability for its shareholders in a responsible manner while also considering the greater impact of its financial practices. Take a look at a few examples here:

Creating jobs that stimulate economic success
Ensuring financial transparency through reporting
Investing in local businesses and supporting local suppliers
Giving a portion of a company’s proceeds to charitable causes

All components of corporate social responsibility should be considered in a company’s overall CSR strategy, and each type can play a significant role in nonprofits’ efforts as well.

Benefits of CSR on Key Stakeholders

The rewards from corporate social responsibility are many⁠—and they reach far and wide, as well. However, each group tends to benefit in different ways.

Let’s take a look at the advantages of CSR for each of the primary stakeholders.

For Nonprofits

Nonprofits can benefit from corporate social responsibility in a few key ways. Perhaps most notable is the increased funding and resources available to charitable organizations through CSR-driven partnerships. This allows receiving organizations to do more for their missions with a new key source of revenue.

Additionally, nonprofit groups can be impacted by co-marketing opportunities made available through corporate relations, often resulting in increased visibility and an extension of their reach.

For Companies

Companies benefit greatly from their own socially responsible efforts. And while producing a positive impact by partaking in social good can be a motivating factor, it’s certainly not the only advantage they see. Participating businesses often see strengthened brand identities, elevated employee engagement (and subsequently maximized productivity and minimized turnover), and dedicated consumer loyalty.

For Employees + Consumers

A company’s employees and consumers each benefit from the company partaking in CSR as well. After all, employees want to work for businesses for which they can be proud to make a difference. And consumers want to buy from the same types of brands!

Double the Donation research indicates that more than 71% of employees report it being of high importance that they work for a company partaking in philanthropy. Meanwhile, 77% of consumers are motivated to purchase from companies that are committed to making the world a better place, and 66% would pay more to socially and environmentally responsible businesses.

For Society

Society as a whole also gets to reap a ton of the benefits of corporate social responsibility⁠—from a healthier environment and an increasing number of fairly compensated employment opportunities to well-funded and accessible nonprofit programming and more. You might even argue that society is the ultimate beneficiary of CSR!

Leveraging CSR For Your Organization

Some advantages of CSR will likely extend to your nonprofit whether you have a dedicated strategy in place or not. However, you’re not likely to make the most of the opportunity without a plan.

Here are a few ways to set your nonprofit up to reap the full benefits of corporate social responsibility initiatives.

Find Corporate Partners that Align With Your Core Values

The best partnerships will be between companies and nonprofits that share key values. If their missions overlap in some way, even better.

For example, a pet supply company might partner with a local animal rescue to provide in-kind donations of food, toys, bedding, and other resources. That sounds like a perfect match!

Determine What Matters to Your Shared Audiences

In addition to overlapping values, another key component of an optimal corporate partnership between a nonprofit and a for-profit entity is a shared audience. For example, if your nonprofit’s target audience were comprised of young adults aged 19-29 in Central Florida, you might seek a business that’s targeting the same consumers.

And this is where employee giving programs can come in handy. Let’s say your nonprofit receives a significant number of matching gifts from one local business that employs a lot of your existing donors. Reach out to the company and see if they’d be interested in establishing a partnership. Don’t forget to use your shared audiences⁠—your donors and the company’s employees⁠—as a way to get your foot in the door!

Develop and Pursue CSR Initiatives

Once you’ve established which types of companies you’ll want to work with, it’s time to jump in with some CSR-related fundraising tactics.

This can be a limited-time campaign⁠—like Giving Tuesday or another charitable giving day⁠—or entail a longer-term partnership. You can also seek out companies that have existing CSR philanthropy programs in place (such as matching employee gifts or offering volunteer grants) or reach out with your own sponsorship opportunities that you’d like to craft.

Interested in a few more ideas? Here are some of our favorites…

Workplace giving like matching gifts, payroll deductions, annual fundraising campaigns, and more
Cause marketing ⁠campaigns that donate a portion of a company’s proceeds to a nonprofit organization
Event sponsorships offering in-kind or financial support for a specific event hosted by a nonprofit

CSR can cover many different areas, so it’s helpful to focus on the avenues that best suit your organization and make a plan from there.

Expand and Finetune Your Efforts

You’ve heard the old adages, “Practice makes perfect,” and “There’s always room for improvement.” Apply these ideas to your organization’s corporate philanthropy strategies, especially if you’re just getting started.

Perhaps you’ll want to dive in by pursuing one key CSR opportunity⁠—such as matching gifts. Then, when you feel like you have a solid and sustainable plan for matching gift fundraising, consider exploring a few new initiatives as well.

Continuing CSR Fundraising Through Economic Downturns

When the economy seems rocky, a common concern is that corporate giving programs will likely be the first to go. Luckily, though, this fear seems to be largely unfounded.

Why Companies Typically Don’t Cut CSR Initiatives Despite Budgeting Constraints

Companies that commit to corporate social responsibility typically do so as an ongoing initiative. In the past, we’ve even seen companies expanding their corporate giving efforts in the face of economic difficulty.

Why? There are several incentives for businesses to participate in philanthropy⁠—as outlined above⁠—and smart decision-makers see charitable giving as a strategic investment into long-term corporate success. And they don’t allow short-term turbulence to get in the way of employee engagement, brand reputation, and more.

Supplementing Corporate Sponsorships with Individual Matching Gifts

However, it is possible that a business would choose to reduce its corporate giving initiatives to cut costs during a difficult time. For example, a business might opt to discontinue a corporate grant it typically offers, but leave its employee matching gift program in place. In that case, a nonprofit can use individual matching opportunities as a way to supplement a lost grant.

Keep in mind that the same idea can be applied to just about any lost funding source. Matching gifts are a great way to go; and even if one employee becomes ineligible due to shifting program offerings, a ton of your other donors can help you make up that gift.

And luckily, Double the Donation and GiveWP makes it easier than ever before to identify, pursue, and follow up on available matching gifts.

Wrapping Up

Corporate social responsibility benefits just about every stakeholder involved. For your nonprofit, it provides access to much-needed funding and resources that your team can use to better pursue your overall mission and vision.

So keep an eye out for these opportunities! Consider which businesses best fit your nonprofit fundraising and engagement strategies and determine how to craft a long-term relationship that benefits you both.

Join Us for Give LIVE on April 19th, 2023

Join us on April 19th at 11 a.m. PST/2 p.m. EST for a conversation between GiveWP and Double the Donation.

We’ll be live on YouTube and Facebook to chat about corporate social responsibility and how nonprofit and for-profit organizations alike can benefit from the impact.

Additional Resources

Keep learning! Check out these additional educational resources on corporate social responsibility for nonprofits:

About the Author

Adam Weinger

Adam Weinger is the President of Double the Donation, the leading provider of matching gift tools to nonprofit organizations and educational institutions. Adam created Double the Donation in order to help nonprofits increase their annual revenue through corporate matching gift and volunteer grant programs.