Revisiting the relationship of CSR and corporate philanthropy by using alignment theory

Both, CSR and corporate philanthropy are expressions of the interferences between the company and its societal environment. However, the question of the relationship between CSR and corporate philanthropy remains unclear. We apply alignment theory to shed light on the interdependencies of CSR and corporate philanthropy. The relationship may be based on alignment, misalignment, or non-alignment. Our research is based on an empiric analysis of the sustainability rating of U.S. companies and its influence on the related corporate foundation expenditures. Our main finding is that there is no clear relationship between sustainability rating and the annual expenditures of the corporate foundation. Hence, we call for further studies on the exclusive role of corporate philanthropy. While corporate social responsibility is closely related to the core business, corporate philanthropy is voluntary by nature.