As a business owner, you might have noticed the rise in corporate philanthropy in recent times. Many organizations are now looking to give back to society and be a positive presence in their community, and this is fantastic to see. Businesses can use their resources to do a lot more than make money, and there are many wide-ranging benefits to doing this that could help to take your business to new levels of success. This post will outline a few of the key benefits of corporate philanthropy and why it is something that businesses of all sizes and all industries should be looking to do.
Corporate Philanthropy Defined
First, it is helpful to look at exactly what is meant by corporate philanthropy. Essentially, this involves an organization voluntarily taking action to make a positive impact on the world (including the environment, society as a whole, and local communities). Corporate philanthropy can take many forms, including investments, grants, workplace giving, volunteering, and supporting other organizations and institutions. These days, businesses invest time, money, and resources to make a direct positive impact and can bring benefits to society, the business, staff, and communities.
Improve The World
Obviously, corporate philanthropy is beneficial because it can improve the world. In a time when there are so many environmental, social and economic issues all over the world, corporate philanthropy can be an effective way to make improvements to the world and communities. Businesses often have far greater resources than individuals, so businesses can make a positive difference when they commit these resources to doing good in the world. Businesses have a social responsibility to be a positive presence in their communities and should do all that they can to give back, whether this is donating profits to a charity, supporting a local foundation, volunteering, or taking part in local initiatives.
One good example of how corporate philanthropy can improve the world is the Savage Rivera Foundation, set up by entrepreneur Michael Savage of New Canaan. This is a foundation that supports children in Honduras – one of the poorest nations in the world, with more than 66% of the Honduras population living in poverty. This is a non-profit foundation set up by Savage with a pure focus on improving the world and helping those that need it the most.
Peace Of Mind
Corporate philanthropy can also provide peace of mind for business owners and employees, knowing that they are doing good in the world. In a time when there are so many issues around the world, it is understandable that people want to help and do what they can. When you participate in corporate philanthropy, you should find it to be rewarding and provide peace of mind knowing that you are doing your part. This is particularly true when a business can have a negative impact on the environment, so many are focused on green initiatives that will help them to reduce their impact and play a part in creating a greener, more sustainable world for the future.
Appeal To Today’s Socially Conscious Consumer
Today’s consumer is one that is socially conscious, passionate, and selective of the brands that they use. Many consumers are turning away from the big brands that do more harm than good and instead seeking out brands that are green, sustainable, and doing positive work to benefit society. Therefore, corporate philanthropy can be a smart way to appeal to your target consumer and increase sales. The key is to find issues and topics that your target market feels passionate about and then start work in these areas.
Build A Positive Brand Reputation
Leading on from this, corporate philanthropy is one of the most effective ways to improve brand reputation. Brand reputation is vital for success in today’s business world, and giving back will help you to appeal to today’s consumers and should help you to achieve higher levels of success and compete with the bigger brands in your industry. Additionally, this is a smart way to increase brand awareness as the work that you do will shine a positive light on your business and could help you to reach people that you otherwise might never have reached
Attract & Retain Talent
One of the often-overlooked benefits of corporate philanthropy is that it can be used to attract and retain talent to your organization. With people more passionate and active than ever, many people will find corporate philanthropy to be an important part of the job when seeking out a new role. When deciding between two companies, it is likely that they will lean towards a business that is doing what it can to improve the world and community. Your employees should find corporate philanthropy to be hugely rewarding, especially the voluntary work that they can get involved with. This should help you to retain talent, which is key for long-term success in business.
Build A Positive Company Culture
Leading on from this, corporate philanthropy is also a great way to build a positive company culture. When you and your team are actively supporting the local community and using your time, money, and resources to do good in the world, it should help to create a positive atmosphere in the workplace and encourage staff to feel more engaged at work. When staff works together to improve the world, it can also unite your team and bring staff closer together. Positive company culture is something that benefits everyone at an organization and can be helpful in creating long-term success for your business as well as making work more enjoyable for everyone.
Create A Larger Network
Having a large network of other businesses, organizations and individuals is something that can always benefit a business. This is because a large network can help you to attract new customers, find exciting new opportunities, increase your market share and build credibility. When you take part in corporate philanthropy, you will have the opportunity to make and build relationships with different companies, organizations, and individuals and form strong connections. This can also help you to learn a lot about important causes, find new passions and drive company innovation, among many other benefits.
Create More Content
Corporate philanthropy is also a great excuse to generate a lot more content. In today’s internet-driven age, every business needs to create a steady stream of content that will help the organization to increase its visibility online. The trouble is that it can be hard to stand out from the crowd when every business is creating content, and often the topics are similar. With corporate philanthropy, you get the opportunity to create unique, interesting, and engaging content that can help you to stand out from the crowd and get noticed. Content on how your organization is reducing environmental impact, improving the lives of those less fortunate,or improving the local community will be interesting and will attract the attention of your target market (especially when it is something that they feel passionate about).
Humanize The Brand
Following this, you should also find that corporate philanthropy is a way to humanize the brand. When people see your staff volunteering in the local community, or they see pictures of the work that you are doing on social media, it gives you the chance to humanize the brand – this is helpful for creating important connections and building brand credibility. As mentioned earlier, many consumers are turning their backs on the large, faceless corporations and instead using businesses that have personality and are trying to do more than just make as much money as possible.
Tax Deductions
While it is not the sole focus of corporate philanthropy, you will find that there are financial benefits to charitable giving. Corporations can receive tax breaks when they partake in charitable giving and donations, and this is a nice added bonus to corporate philanthropy. Obviously, you need to carefully track and record all donations that the business makes, and you might find it best to work with an accountant so that you can ensure compliance and understand your tax obligations for the year.
Key Considerations
These are the main benefits of corporate philanthropy, but there are a few key considerations before you get started. First, you will find that corporate philanthropy can negatively impact the business in a few ways. Obviously, donating money will come at a cost, so you need to make sure that you are in a financial position to manage charitable giving and also weigh up the potential financial benefits against the drawbacks. Additionally, corporate philanthropy can take up a lot of time and resources for you and your employees. You do not want your philanthropic efforts to negatively impact the performance of the business, so you need to make sure that you are still able to provide enough time and energy to your primary goals. You might also find that some staff does not want to get involved with volunteering or charitable giving, and this should be respected.
Getting Started With Corporate Philanthropy
So, if you have decided that you want to enjoy all of the above benefits and make the world a better place, then you will need to consider what the best way to do this is for your organization. You should consider the best ways that you can support your local community as well as conduct research to determine what the issues and causes your target market feels the most passionate about. You do not want to spread yourself too thin by taking on too many projects, so it is a good idea to start with just one or two corporate philanthropy projects, to begin with.
As you can see, there are many benefits to corporate philanthropy, and it is something that every business should be looking to get involved in within 2022. Whether you are a startup, SME, or large corporation, you should find corporate philanthropy to be a worthwhile venture with wide-ranging benefits. With so many global, domestic, environmental, and social issues affecting the world in 2022, businesses should do what they can to give back and create a better world for all. This will allow you to make a positive difference in the world, paint your organization in a positive light, help you to attract and retain customers and improve the workplace culture. It can take up time, money, energy, and resources, but most organizations find this to be worthwhile when you consider the wide-ranging benefits and the personal satisfaction that it can provide.
