Does ‘Corporate’ Responsibility Apply to Not-for-Profit Organizations?

This chapter begins by exploring the different approaches to Corporate Social Responsibility (CSR) between the standard practitioners, i.e. large multinational corporations (MNCs), and the not-for-profit sector, focusing on large-scale international NGOs. While it is assumed that not-for-profit organizations, given the very nature of their existence, are likely to meet the same social standards as the corporate sector, very little research has been done as to whether such organizations are practicing what they preach. Despite the fact that most of the well-known international NGOs have the organizational layout, funding, branding, and public relations of a large MNC, the expectations of these entities are less clearly defined. Are their resources better spent on the mission of their organization, or are they to be held to the highest standards of social conduct given their position as role models? Or is the most beneficial role of the NGO that of consultant to the corporate sector, regardless of whether they conduct such practices themselves? If not, how can CSR be incorporated into the business plan of a not-for-profit organization? The attempt to initiate these relatively new expectations of socially conscious behavior into the standard daily operations of a not-for-profit organization is viewed in the context of the similarity of NGOs to the MNCs which they position themselves to lead in the dawn of the CSR revolution. Looking specifically at the World Resources Institute, the International Labor Rights Forum, and the International Fund for Animal Welfare, the study then goes on to examine the incentives behind CSR, and whether those goals are best met by current practices. Ultimately, the study revealed that the integration of socially responsible business practices into everyday operations is best met when the endeavor is in line with the central goal of the organization, and socially conscious practices which fall outside of this scope are of a lesser concern.