"Corporate Social Responsibility (CSR) is dead." You'll find that sentiment in many well respected publications including the Economist. Truth be told, the current iteration of CSR does not seem to be sustainable. How can a company, especially a publicly traded one, fulfill its fiduciary obligation to its shareholders to maximize revenue while taking on obivous cost centers like a CSR program? There's a great article in the Stanford Social Innovation Review that outlines the dillemma that managers face.
To date, CSR has involved implementing environmentally sound practices at companies, employee volunteer programs, and providing grants through corporate foundations. These are all cost centers and the market is not forgiving of practices that intentionally lower margins.
Here's where i believe Third Party Fundraising can provide a viable alternative to common CSR programs. It doesn't work for all companies but it can for many. For those who don't know, third party fundraising refers to activities that volunteers engage in to raise money for causes. This can be someone running a marathon or hosting a gala dinner to raise money for their cause. CSR programs should attempt to foster this kind of activity especially if it involves using their products in some way. Could an athletic shoe company raise money for its chief causes by providing their customers a way to raise money online on a site where they can also purchase shoes and gear? Can a beverage company run a campaign to promote using their products in parties to raise money for their causes?
The difference between this approach and traditional CSR is that it has a revenue component. CSR and revenue generation. Fulfilling your obligation to the market and the world. Like I said, its not a fit for all companies. How can Third Party Fundraisers use widgets to raise money? Sounds tough to me. But for many, it's an idea worth exploring.
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