Corporate philanthropy and social responsibility is win-win for companies on many levels as well as for the community at large. Of course, it improves your brand and it’s the right thing to do, which is why more companies today are ramping up their programs and making it a more thoughtful process and a priority. There’s also a more practical side to giving that can actually enhance a company’s growth strategy. The information below sheds light on why philanthropy is good for business.
There’s a reason why companies make their philanthropic endeavors public. Consumers like to support companies that give back. In fact, consumers—especially those in the younger generations—are more likely to support companies that have hearts and give to worthy organizations. Studies show that approximately 87% of consumers will purchase from a company that supports a cause they feel passionate about. And those consumers will often stick with brands that are doing good, even if a service or product costs more.
In addition to consumers wanting to support companies that are philanthropic, job candidates prefer to work for organizations that care, providing a larger and better pool of applicants. Many professionals would choose a company that gives back over one that doesn’t. Why? A company that cares by giving back is often a good indication of how it cares about its employees.
A Better Company Culture
One of the most common ways in which companies give is by promoting or sponsoring volunteer activities. Involving employees in the community not only ensures philanthropic actions will have local impact and meaning, it will lead to happier and more productive employees. Studies have shown that employees who work for companies that have a clear mission and engage with their communities feel better about their workplace and are more engaged.
Corporate philanthropy is most effective when it is tied to well thought-out social and business objectives and when it leverages a company’s strengths, namely, its resources, services and business acumen, to support charitable causes. It is also a powerful way to reach out and connect with like-minded business leaders in a wide range of industries. Making the right connections that cultivate mutual interests and respect can be an invaluable networking resource that leads to new opportunities, business prospects and lasting relationships.
Making charitable giving a standard practice is not only a genuine way to make the world a better place; it’s good for business too. As with other areas of business, it’s best to develop a solid strategy that aligns with your current initiatives and long-term goals.