Many companies actively carry out corporate social responsibility. Which is about working for the benefit of the problems that affect society. However, there are companies that don’t always have all the resources to carry this out. And that’s why they resort to crowdfunding, to promote this initiative.

Crowdfunding and corporate social responsibility

Today we’ll talk about two topics that have much in common. Crowdfunding and corporate social responsibility (CSR). Crowdfunding, as we already know, is a financing method that relies on multiple contributions from people. And CSR is, according to Wikipedia, “is a type of international private business self-regulation.”

One of the reasons why they have so much in common is because they complement each other. Crowdfunding can be used to finance social projects, and CSR can be financed without crowdfunding. In fact, this is something that has already taken place.

Crowdfunding Campaigns CSR
Ketto is one of several crowdfunding platforms where companies can finance CSR projects. Source: Ketto

A research article by Arief Rijanto for SAGE Journals explains the combination of these two elements. The summary states that “CSR initiatives may create the opportunity to generate funds through crowdfunding (…) Crowdfunding can be used to micro fund many social activities in line with a company’s CSR goals”.

Through this statement, we can see that both initiatives can work together. Here also comes another element very similar to CSR: we refer to social entrepreneurship. And remember that social entrepreneurship doesn’t necessarily seek to innovate, but to help communities that need it.

Social entrepreneurship, companies and CSR

We have a research paper by Shaike Marom for Emerald Insight. It explains that crowdfunding platforms are a “relatively new form of for-profit business” within this industry. And therefore, “must adopt a social responsibility behavior that takes into account their different interest groups.”

This means that companies create CSR plans oriented to what they do. To your values, your audience, your work areas, your location, etc. For example, a construction company can dedicate itself to carry out CSR works for reforestation and protection of the environment.

Construction CSR Crowdfunding
According to Chron.com, “construction companies have a significant impact on the communities they build.” Hence, his concept of CSR. Source: Alice De Komodo

Another way in which companies can carry out CSR is by supporting crowdfunding campaigns. And as we mentioned before, companies have the freedom to support campaigns that fit their values ​​and way of working. In order to promote the areas that they consider relevant.

According to ZAAR, “the type of crowdfunding projects these companies will support can vary from young entrepreneurs to charity ventures to environmental projects, depending on what their own CSR policies focus upon.” This reiterates what we said earlier.

Companies Financing Crowdfunding
Companies have the opportunity to support projects and carry out CSR through crowdfunding campaigns that they want to support. Source: Civilized.life

From everything we’ve seen so far, we could see several examples on crowdfunding and RSC. These two areas cooperate with each other to allow the financing of social projects and social entrepreneurship. Always in the way that’s most convenient for the company in question.

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Related: The Development Of Archeology Thanks To Crowdfunding

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