Question 1: Philanthropy as a Socially Responsible Business Activity
Corporate philanthropy is a core part of every organization, yet it is not required. Philanthropic duty, according to Carroll, Brown, and Buchholtz (2018), encompasses corporate efforts that aim to improve the globe and the communities in which they operate. Many large firms, such as Alibaba, partake in philanthropy to reduce their taxable income. However, decreasing the company’s overall tax due for the year is not the sole benefit of charitable donations (Porter & Kramer, 2002). Aside from being a component of corporate social responsibility, Alibaba has shown that philanthropy fulfills the most basic human wants. These are desires that cannot be satisfied by money, fame, or success. Alibaba is supporting China in attaining shared prosperity, or the deliberate transfer of wealth from the super-rich to the rest of the populace. Alibaba is a major player in China’s e-commerce market. Participating in philanthropic events and projects is an excellent way for large corporations like Alibaba to add considerable value to their workers’ jobs.
Philanthropy and social responsibility are both widespread corporate activities, and the two concepts often overlap in practice. Because the terms are often used interchangeably, it may be difficult to distinguish between CSR and philanthropy (Marquis, Glynn, & Davis, 2007). Philanthropy is a regular component of bigger corporate social responsibility programs. Both of these suggestions are excellent for putting a company’s resources to good use in the community that it serves. Furthermore, the funds may be donated to a nonprofit organization. When the history of each activity is examined, as well as organizations that engage in both philanthropy and corporate social responsibility at the same time, it is obvious that there are substantial disparities between the two forms of giving (Stendardi Jr, 1992). Although monetary gifts are the most popular kind of philanthropy, entities such as Alibaba may also give their time and other resources in addition to money. Philanthropy is, thus, an act of working toward the objective of making the world a better place by providing direct giving, such as food for the homeless or relief to those affected by a natural catastrophe.
In the short run, philanthropy does not offer lasting solutions but, instead, seeks answers to social issues. At the organizational level, Alibaba’s generosity, for example, takes many forms, each of which serves a distinct purpose. The firm routinely contributes financial assistance to groups trying to promote good social change. Sometimes it claims credit for philanthropic acts while also connecting its brand with the initiative. In certain cases, Alibaba augments its philanthropic contributions by conducting these activities in-house or creating strong collaborations with other organizations that are in need of support (Svensson, 2021). Certain corporations, such as Alibaba, have whole departments whose only function is to administer the company’s philanthropic initiatives. Even though the meaning of philanthropy is diverse (Zhong, Zhao, & Shahab, 2022), the concept is often misunderstood as a useless business venture (Yang et al., 2019). Philanthropy, however, must be understood as an extension of a firm’s corporate social responsibility and a way to position itself in the business world.
The degree to which a firm is dedicated to behaving in a socially responsible way influences its business practices and operations. It is more than simply a benevolent gesture since it engages the company with the problems that affect the community (Eweje & Palakshappa, 2011). This is not confined to philanthropic contributions. Being a Tech giant in China, Alibaba Group, for example, must implement certain communal benefits to its immediate environment in order to reduce the quantity of pollution produced by its operations. It would be irresponsible to abandon contaminated waste once some aspect of production has been completed. As a consequence, both the overall health of the community and the health of individuals of the community would suffer. Corporate social responsibility is not always maintained or enforced, but it should be an inherent component of any large firm, since certain commercial practices may have unintended consequences. Regardless of these realities, CSR remains an essential idea (Selsky & Parker, 2005). Therefore, philanthropy does not equate CSR because the latter refers to an organization’s attempts to avoid or reduce the risk of negative impacts on the local community, as well as its search for solutions to issues caused by the company’s influence on society, the environment, and employee well-being.
Although they may seem to be synonymous, corporate social responsibility refers to a company’s overall stance on society, whereas corporate philanthropy is a subset of CSR that focuses more strictly on giving back to the community. Businesses that are driven by a sense of humanitarian duty will often contribute a portion of their profits through philanthropy. Furthermore, they shall conduct themselves in an ethical and environmentally responsible way to the best of their abilities. Many for-profit businesses make donations to other entities whose aims are similar to their own. On the other hand, some businesses make a point of contributing money to worthy organizations that have nothing to do with their industry. Some firms go so far as to form their own philanthropic trusts or organizations in order to give back to their communities. Actions for Common Prosperity is a brand-new humanitarian project announced by Alibaba to the rest of the world (Yu & Kuo, 2021). It prioritizes five areas: developing technology, economic growth, excellent job prospects, supporting the vulnerable, and the shared prosperity development fund. Agriculture modernization, the growth of small, medium, and micro businesses, and the expansion of SMEs into global markets would all benefit from the enhanced funds provided by this project. Furthermore, it will improve people’s prospects of finding respectable job (Kim & Ji, 2021). Across this way, the company goes above and beyond its corporate social responsibility duties to build a culture of caring for its surroundings and the people it serves in a wide range of work areas and industries.
Given what has been said so far, it is clear that philanthropic responsibility is a subset of, or maybe an altogether different subculture within, corporate social responsibility. Businesses like Alibaba may give back to the community in a number of ways, including sponsoring educational programs, aiding with health initiatives, providing money to deserving groups, and working with projects to enhance the town’s image. The goals of corporate social responsibility and philanthropy giving, on the other hand, are inexorably interwoven. Engaging in philanthropic giving and other types of corporate social responsibility is one approach for a firm to strive toward improving its reputation in the eyes of the general public. However, these efforts often go beyond that since corporate social responsibility and philanthropy may also help a company become more competitive. CSR and giving back to the society may be seen as tactics to add value to the company by developing and maintaining a good corporate reputation and/or enhancing brand equity, according to Alibaba (Zhou, Chen, & Li, 2018). This is one way that value may be added. Customers who shop at a firm that practices corporate social responsibility and philanthropy assume that their purchases help the company to support philanthropic endeavors. When Alibaba invests in measures to improve operational efficiency, it reduces not just its overall operating costs, but also the amount of environmental harm done (Wang et al., 2022). Employees who are aware that their business has corporate social responsibility and, more specifically, philanthropic obligation are more likely to stay with the company for a longer amount of time and to put in substantial effort to guarantee the company’s success.
In summary, corporate philanthropy and corporate social responsibility (CSR) are two sides of the same coin. Sometimes it’s hard to tell the difference between corporate social responsibility and philanthropy since the phrases are sometimes used interchangeably. Philanthropy is a socially responsible business activity and a way to augment a brand’s position in the world. CSR actions, such as philanthropy, may be a key marketing tool that may help a company position itself favorably in the eyes of consumers, investors, and regulators. Initiatives targeted at increasing a company’s social responsibility may also increase employee engagement and satisfaction, two important indicators that influence employee retention. These kinds of activities might also interest potential employees who have strong personal beliefs that are comparable to those held by the organization. Alibaba has demonstrated that CSR and philanthropy must remain to be two independent functions in a brand’s effort to add value, attract more customers, and reposition itself above other firms in an industry. Specifically, through its Action for Common Prosperity, Alibaba prioritizes five areas: developing technology, economic growth, excellent job prospects, supporting the vulnerable, and the shared prosperity development fund. The firms demonstrates that agricultural modernization in China and the rest of Asia, the growth of small, medium, and micro businesses, and the expansion of SMEs into global markets would all benefit from the enhanced funds provided by the philanthropic responsibility. By partnering with nonprofits, the government, individuals, and communities, Alibaba has gone over and beyond the definition of CSR to become a truly philanthropic enterprise. In the end, participating in philanthropic events and projects is an excellent way for large corporations like Alibaba to add considerable value to their workers’ jobs.
References
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