What is the difference between philanthropy and social responsibility?

The term philanthropy, in the dictionary, means love for humanity and generosity. It conveys the idea that we can all practice philanthropy, acting for the good of others. Social responsibility, although directly linked to companies, refers to ethical practices that contribute to a more just society. The relationship between these two terms and their meanings can be easily confused. Therefore, it is important to distinguish how each one acts and what they promote.

Do you know how to differentiate between these two terms that directly influence people's lives? Then, keep reading this text and understand the characteristics of each action and their benefits.

How did philanthropy begin?

Since the beginning of time, solidarity and giving have been part of human history. The concept of philanthropy originated in ancient Greece through the ideas of Aristotle, who saw the relationship of friendship between people as a natural bond. This idea has been perpetuated throughout the centuries by Western Christian societies, and its practice continues to this day. 

In Brazil, philanthropy and social assistance have always been related to charity, as Christian practices linked to religious institutions. However, it only became structured after the 1988 Federal Constitution, with the creation of the Certificate of Entities with Philanthropic Purposes in 1993. 

Only through Law 9.790/99, with the regulation of Public Interest Civil Society Organizations – OSCIPs, was the importance of the third sector in the development of philanthropic activities recognized. 

Where did social responsibility originate?

"Social responsibility" was first identified in a manifesto by English industrialists. The idea was to hold industry leaders accountable for balancing the interests of employees, shareholders, and consumers. It was only in the 20th century that the first demonstrations defending this idea emerged. The author Oliver Sheldon wrote in his 1923 book about the relationship between a company's position and society. His intention was to unite social ethics with administrative activities.

This new way of managing gained momentum after the First World War. This was because the possibility of cooperation between industry and the community in the quest to rebuild countries was recognized. This was demonstrated by the growth of associations, such as unions, churches, and other civil society movements.

Social responsibility has become known as situations in which companies undertake actions to promote internal and external well-being . This practice is voluntary and cannot be identified as an imposition by the government or other incentives. Thus, the benefit is collective and does not remain solely with the internal or external public of each organization.

What is the difference between philanthropy and social responsibility?

Although both concepts focus on the well-being of the people around us, they have differences that guide how we can classify each of them.

Philanthropy ,and basic necessities. Furthermore, philanthropy can be carried out by individuals or companies. Or, simply, it is private capital working for the public good, without expecting financial return.

Social responsibility is a set of actions taken to improve the quality of life of a group of people. These interventions are focused on the areas of education, environment, sustainability, company profitability, and income production and distribution. In turn, this concept brings the idea of ​​civic duty, that is, the intention to care for society and the environment, not just for one's neighbor.

How to practice philanthropy?

Philanthropy isn't just about giving money to those in need. To practice philanthropy, you need to be part of the process. However, we often see donations made infrequently, without much interaction. This act needs to be viewed as a process involving research, careful selection, and understanding. Here's a step-by-step guide to engaging in this practice.

Step 1

To begin philanthropy, it's important to choose a cause and the audience you wish to serve. Examples include underprivileged youth and teenagers, shelters for drug addicts, or homeless people. If you're still unsure about your cause, take the quiz and find out!

Step 2

Identify the region where you want to work. Many people prefer to help organizations that are nearby. However, it is possible to find organizations at the municipal, state, federal, and even global levels. 

Step 3

Make a list of the institutions you wish to support. The important thing here is to focus on the characteristics you considered in the first point. In this case, it's worth searching online and even talking to people in the city to learn about these organizations.

Step 4

Conduct a site visit based on the criteria you defined. This way, you can see firsthand how the team works on a daily basis. Furthermore, you can verify if the actions are actually being taken and if the cause is being taken seriously.

Step 5

Choose the ideal institution and start your donations. In this case, you can choose to make the donations that were mentioned, such as money, clothing, food, and cleaning and personal hygiene products.

What is strategic philanthropy?

Within philanthropy, we find what is called strategic philanthropy. This form of donation is based on evidence for the development of a plan to make a donation guided by its impact on a community.

Strategic philanthropy works towards systemic change, using creative planning, agile execution, and monitoring to achieve its objectives. The intention is to solve social problems that align with the core values ​​and missions of companies and individuals. Therefore, this concept is employed when social investors (whether companies or individuals) make an investment to address social problems.

The Bem Maior Movement (MBM) is an example of a social organization that practices strategic philanthropy. The organization works to identify, connect with, and enable initiatives with social impact. Its goal is to consolidate the philanthropic ecosystem in Brazil. This objective is achieved through the mobilization of leaders in building a more inclusive society.

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