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What is the difference between philanthropy and social responsibility?

For Movimento Bem Maior

Aug 2021

The term philanthropy , in the dictionary, means love for humanity and generosity. It brings the idea that we can all exercise philanthropy, acting for the good of people. Social responsibility , despite being directly linked to companies, concerns ethical practices that contribute to a fairer society. The relationship between these two terms and their meanings can be easily confused. Therefore, it is important to distinguish how each one works and what they promote.

And do you know how to differentiate between these two terms that directly influence people's lives? So, continue reading this text and understand the characteristics of each action and its benefits.

How did philanthropy start?

Since the world has been around, solidarity and donation have been part of the history of humanity. The origin of the concept of philanthropy arose in ancient Greece through the conception of Aristotle, who saw the relationship of friendship between men 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. But in a structured way, it came to be consolidated after the Federal Constitution of 1988, with the creation of the Certificate of Entities for Philanthropic Purposes, in 1993.  

Only through law 9,790/99 , with the regulation of Civil Society Organizations of Public Interest – OSCIPs, was recognition of the importance of the third sector in the development of philanthropic activities.

Where did social responsibility come from?

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

This new way of managing gained momentum after the First World War. Because the possibility of cooperation between industry and community in the search for the reconstruction of countries was realized. And this was demonstrated by the growth of associations, such as unions, churches and other civil society movements.

Social responsibility became known as situations in which companies take actions to promote internal and external well-being . This practice is voluntary and we cannot identify it as being imposed by the government or other incentives. Thus, the benefit is collective and does not just remain 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 present differences that guide how we can classify each of them.

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

Social responsibility is a set of actions taken to improve the quality of life of a group of people. These interventions are aimed at 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 take care of society and the environment, not just others.

How to practice philanthropy?

Philanthropy is not just about giving money to those most in need. To practice philanthropy you need to be part of this process. In this way, what we can see is that donations made are made few times, without there being any interaction. However, this attitude needs to be seen as a process that involves research, choice and knowledge. Check out the step-by-step guide to carrying out this action.

1st step

To start philanthropy, it is important to choose a cause and the audience you want to serve. For example, we have needy young people and teenagers, shelters for drug addicts or homeless people. If you still don't know what the cause is, take the test and find out!

2nd step

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

3rd step

Survey the institutions you want to support. The important thing in this case is to focus on the characteristics that were considered in the first point. In this case, it is worth doing a search on the internet and even with people in the city to find out about these spaces.

4th step

Perform a site visit based on the criteria you defined. This way, it is possible to see in essence and on a day-to-day basis how the team works. Furthermore, you can verify that the actions are really happening and that the cause is being taken seriously.

5th step

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

What is strategic philanthropy?

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

Strategic philanthropy works towards systemic change, using creative planning, agile execution and monitoring to achieve objectives. The intention is to solve social problems that dialogue with what companies and people have as core values ​​and missions. Therefore, this concept is used when social investors (whether companies or individuals) make an investment to solve social problems.

The Greater Good Movement (MBM) is an example of a social organization that exercises strategic philanthropy. The organization works to identify, connect and enable social impact initiatives. Its objective is to consolidate the philanthropic ecosystem in Brazil. This direction aims to be achieved through the mobilization of leaders in the construction of a more inclusive society.

 

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