University of Vaasa - Vaasan yliopisto

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It also examines the applicability of societal marketing and corporate philanthropy in
the context of the educational institutions in Singapore. Educational institutions can
be suitable alliance partners with organizations who engage in corporate
philanthropy.
Background Literature
Corporate philanthropy can assist an organization to achieve its social objectives
(philanthropy) and financial goals (profit). According to Varadarajan & Menon
(1988), this can be considered as a component of a wider concept called Corporate
Social Responsibility (CSR).
Although a familiar management buzzword these days, CSR varies in terms of its
underlying meanings. The term "corporate social responsibility" is often used
interchangeably with corporate responsibility, corporate ethics, social enterprise,
corporate citizenship, sustainability, sustainable development, triple-bottom line and
in some instances corporate governance (Harvard Kennedy School Corporate Social
Responsibility Initiative 2009). Though these terms appear different, they actually
have a similar underlying implication and that is CSR encompasses not only what
organizations do with their profits but also how they make them. Ultimately, there is
a need for organizations to undertake activity that is regarded as socially responsible.
As Moir (2001) points out, “the primary role of business is to produce goods and
services that society wants and needs; however there is an interdependence between
business and society”.
There is much cross-national evidence that the varying definitions of CSR are
because the meanings and practices of business responsibility are different for
different countries (Matten & Moon 2008). For example, in developed countries
there may be a social emphasis on environmental issues, however, in developing
countries, there may be a stronger economic emphasis in terms of financial aid or
educational scholarships. The differing schools of thought regarding CSR can be
seen to have oscillated between the two extremes of the free market concept
(classical economic theory) and the socially-oriented approach (Bronn & Vrioni
2001). For the purpose of this paper, the explanation of CSR should include both
the social and the economic (including financial) aspects. It must be inclined
towards a socially-oriented approach but not without economic gain by the
concerned parties, the donor and the benefactor. In fact, Moir (2001) highlighted the
stakeholder theory to analyze and examine the various “concerned parties”. In the
stakeholder theory, the organization deals with a series of connections of
stakeholders that the managers of the organization attempt to manage. Stakeholders
include shareholders, investors, employees, customers and suppliers, governments
and communities and individuals who influence or are affected by the organization.