Corporate Social Responsibility: Corporate Foundations versus Normal Foundations
Anneke Zwart, Student (University), Netherlands, Premium Member
Due to increased awareness of the social and environmental effects of economic and other activities (among other reasons), many for-profit businesses have started to include CSR-activities in their business activities. In general, the CSR activities are managed either by the organizations itself, or transferred to a so-called "Corporate Foundation" (CF).
In for-profit organizations, a CF is the instrument through which benefits of CSR-activities can be managed. Minciullo and Pedrini (2015) elaborate on the main characteristics that distinguish CFs from normal foundations. The following characteristics apply:
- CFs have closer ties due to financial resources: A normal foundation usually is not financially dependent on a single firm. Rather, they are funded independently.
- CFs have closer ties due to dependence: A CF is also dependent in a non-financial way on the founder firm. This includes dependence in terms of employees, know-how and relations/networks. Dependenc (...) Read more? Sign up for free