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Advantages And Disadvantages Of Philanthropy

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The most common form of philanthropy in the CSR pyramid (Economic, Legal, Ethical, and Philanthropic) is cause-related marketing, where a charity donation is tied to a commercial exchange. Next most common are donations of cash in which donations are not tied to a sale of a product. These donations can also be matches of fundraising for a cause. Another common form of philanthropy is community involvement, usually coupled with employee volunteerism. Other less common forms of philanthropy include awareness campaigns and promotions of social issues, donations of products, licensing, event sponsorship, and customer donations. (Peloza & Shang, 2010).
As the most common form of modern philanthropy, cause-related marketing can be defined as a marketing strategy whereby the firm makes a financial or other type of contribution to a nonprofit organization, contingent upon the customer engaging in a revenue- providing exchange that satisfies both the business and individual objectives. This …show more content…

However, stakeholders can be defined as including employees, shareholders, and consumers. CSR is a growing trend that is important to consumers, especially to the millennial generation. It is actually investing in the future of the company to conduct CSR and to formulate long-term, profitable relationships of trust with millennials, who are the consumers of the future. Proper CSR can also attract future talent to support and work with the organization. A 2002 study conducted by Net Impact found that more than half of the 2,100 MBA students surveyed indicated they would accept a lower salary in order to work for a socially responsible company. (Kotler & Lee, 2005). CSR can be a means of not only building a positive brand image and respected corporate philosophy, but also attracting young working talent and developing the company’s market share with the upcoming millennial

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