Philanthropy allows business owners and companies to give back while enhancing their reputation. Many consider philanthropy to be a responsible business practice that can improve customer relations. In fact, in many cases, it is expected. Here is a look at how philanthropy benefits others and how essential philanthropy is in the business world.
The basics of corporate philanthropy
Philanthropy involves an act or gift that is made to benefit others. Philanthropy can involve any effort to help other people, from volunteering to monetary donations. Corporate philanthropy occurs when a business engages in philanthropy.
Business owners often choose to give to causes that are meaningful to their personal life and experiences. Philanthropic causes might arise from the needs of the local community where the business is located, or they could be set up to help a loved one meet medical expenses.
Benefits of corporate philanthropy
Corporate philanthropy assists with the cause it is set up to help, and business will often also find that giving to others brings the business many benefits.
While some executives might see corporate giving as non-essential, many savvy business owners know that corporate philanthropy often results in a variety of rewards beyond the annual tax write-off, like attracting customers and employees.
Integrating philanthropy into the core mission of your business is sure to engage customers. Businesses spend a vast amount of resources to provide excellent customer service and customer experiences, so it only makes sense for them to spend time and money on the type of giving back that results in a positive emotional response from consumers.
Philanthropy connects consumers with your business. When the public can see your business helping them, they will remember your brand positively. In this way, philanthropy covers two vital business goals: building customer relations and boosting brand recognition.
Employees expect it
If you want your business to stay competitive, you need to attract the best work force. Employees care more today about where they spend 40 hours or more per week. Potential employees usually consider the company’s core values, which is shown by corporate giving. The caring act of philanthropy is a sign that the company cares about the public and its employees.
A passion for helping others through philanthropy often fuels a greater sense of purpose for employees and managers. When you boost employees’ morale, you are likely to increase production and profits. Keep in mind that passion drives people to create, innovate, and work harder.
Companies that give back
Many companies and business owners engage in philanthropy. Here are a few examples that might be unfamiliar to you.
You might have read the news stories about the Gallery Furniture owner opening his doors to people who were fleeing flooded homes due to Hurricane Harvey. This is not the first time that this small business owner has given back. In fact, Gallery Furniture is known for being quick to respond in times of disaster and organizing efforts for charitable needs.
Olympiacos Football Club President Vangelis Marinakis often engages in philanthropy and has recently shown great compassion to refugees who are currently stranded at the Port of Piraeus in Greece. Since the Piraeus region is the home to the Olympiacos team, he wanted to help the refugees stranded there with meals, clothing, and toys. Marinakis is also proud of the staff, administrators, and players for donating their time to distribute items. The refugee children received a special treat when some of the most popular players showed up to play football with them.
Cascadian Farm Organic is a company that is donating part of consumers’ purchases to the environmental cause related to saving bees. The bee friendlier campaign allows consumers to enter a code to donate to either bee research or wildflower habitat creation.
Small businesses can participate
While large corporations appear in news headlines regularly for their philanthropy, many small businesses also give back. Small business owners might worry that giving back requires a large financial commitment that is difficult to afford when profits are already being poured back into the business to bolster growth, but the opposite is true.
Small businesses with a minimal budget can recruit a fundraising team for local events hosted by nonprofit organizations. Businesses can develop internal campaigns for employees to donate goods or volunteer at the local branch of a well-established national nonprofit.
There are many reasons that businesses of all sizes can benefit from acts of philanthropy. Standing strong in your company ethos of giving back attracts customers and highly-qualified employees. It is a general good business practice that shows how you care. Consider becoming more involved in your local community and giving to great causes to better your business.