The importance of corporate philanthropy – Stelios’s tips
Charity may seem a relatively new concept in the world of business, but corporate philanthropy has actually existed for quite some time now.
Corporate philanthropy refers to the activities that companies voluntarily initiate and aim to manage their impact on society. Most companies with corporate philanthropy programs achieve the primary goal of a positive social impact by strategically and generously using their resources. Typically, corporate philanthropic activities include financial investments, donations of products or services, donations in kind, employee volunteering programs and any other business procedures aimed at supporting a social purpose.
Why should companies donate to charity?
The team’s morale is boosted
It's a simple fact – when you're doing good at work, you feel good. And when you feel good at work, you're more likely to have a positive mindset about your role and your company. It’s no secret that having a good mood increases your productivity and the quality of your work – a study shown that happy employees are 12% more productive.
This is the essence of why the philanthropic business model works. It forces companies to look beyond achieving their KPIs and generating profit to create a more generous, positive work environment. Your employees will feel proud to be part of a team that makes a real difference in the lives of those in need. Volunteering in the workplace makes millennial employees twice as likely to rate their corporate culture as very positive according to a study. Cultivating a productive and cheerful office culture also improves your chances of retaining your current workforce and attracting new employees. All these good things contribute to a successful business – a happy, excited and productive team that believes in the company.
The company’s reputation is improved
The corporate offering makes your business look good to the public as well. Think of it as another marketing channel – being a philanthropic business is a great way to improve your organization's profile and improve your reputation among your audience. According to a study, millennials spend 70% more on brands that support causes that interest them. The Charities Aid Foundation found that 51% of British adults are more likely to buy a product or use a service if a company donates to charity.
Corporate philanthropy is also an abundant source of public engagement, especially in younger generations that are more likely to work with brands on social media to discuss social responsibility issues. By being a vocal ally in disadvantaged groups or causes that you are passionate about on social media, you will clearly convey the values of your company to everyone. It, also, shows that your support is genuine, advocating for a cause, even when it's not trendy to do so.
What you don't want to happen is to rally behind a cause that doesn't align with your company's brand values, simply because it's popular or opportune. This approach often attracts public scrutiny for piggybacking in a movement to improve your business profile. For example, during Pride 2019 various companies were accused of "clothing" their trademark using the international celebration of LGBT rights as a PR trick. M&S was heavily criticized after releasing an LGBT sandwich for the event, which resulted in their targeting. Corporate philanthropic offering will only improve your brand's reputation and awareness if your commitment is genuine and you aim to make long-lasting changes under the public eye.
How donating to charities can help your corporate organization?
In addition to the impact of community and employee recruitment and engagement, corporate philanthropy has a number of benefits that enhance your business and everyone around you.
Customers, especially the younger workforce, want to support businesses that have a heart.
Studies show that even if a product costs more, most customers will stick to brands that do good. If two products cost the same, almost every customer will buy from the business that promotes their philanthropic efforts.
You will receive a larger group of job candidates because people want to work in places that show an interest in social contribution.
Your employees will benefit as well, especially when they’re actively involved in your company's corporate philanthropy. Employees will be more productive and will want to stay.
Better corporate culture:
When companies have a clear community-focused mission, everyone who works there is more engaged.
A larger network of partners:
Corporate philanthropy and giving means reaching out, meeting people and connecting with your community. It's an amazing way to make new connections, learn about your community and inspire the company's innovation. Corporate philanthropy can lead to increased sales, customer loyalty, better recruitment, happier employees, a better corporate culture and larger networks for your business and everyone around you.
Corporate philanthropy can transform disadvantaged communities either directly or through charities. While businesses improve the lives of the people around them, there are consequential benefits for donators. Your business can reap the benefits of charitable donations while contributing to a better world.
By Stelios Kassios, Αccount Manager of our super team!
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