How do philanthropy and strategic CSR differ? Provide an example.

• A. Philanthropy involves voluntary giving without direct business returns; strategic CSR aligns social initiatives with core strategy to create shared value.
• B. Philanthropy is when a company repurchases its own stock; strategic CSR is when it donates to charity.
• C. Philanthropy is illegal in some jurisdictions; strategic CSR is always legal.
• D. Philanthropy is about marketing; strategic CSR is about outsourcing.

Answer: (A)

The main idea is that philanthropy is charitable giving with no direct business payoff, while strategic CSR ties social work to what the company is trying to achieve in its business, creating value for both society and the company. For example, philanthropy would be a company donating to a local museum or disaster relief fund—good for the community but not tied to the company’s operations. Strategic CSR would be a company investing in energy efficiency and sustainable sourcing because it lowers costs, reduces risk, and strengthens its competitive position while also delivering social benefits like lower emissions and better working conditions.