Giving back to the community at large has always been a time honored tradition by those businessmen and women (and entertainers) who’ve made a lot of money over the course of their careers. Many of you who have started from nothing but have worked your way up the financial ladder to massive success know what it’s like to have nothing in the bank, and you haven’t forgotten your roots. That’s why you actively give back to your favorite causes.
But philanthropy is a heck of a lot more than just giving away cash. According to a recent article, corporate philanthropy is a benefit not only to the community, but also to your employees and to your company. This has never been more true than in these post-pandemic times.
As society makes the shift toward more environmental, social, and fiscal responsibility, the importance of corporate philanthropy has been on the rise also. What this means is, giving back is paramount for business success since it attracts more corporate benefits including a positive impact on overall job performance.
Even law firms are getting in on the corporate philanthropy action. For instance, the Barnes Firm has become one of the nations largest personal injury law firms. They have dedicated their time to assisting thousands of clients. But they are also committed to helping the community via its many local philanthropy efforts, including thousands of dollars in sponsorships to academic organizations and nonprofits throughout the Barnes Firm locations in both California and New York.
That said, here are more ways philanthropy benefits not only the community but your company.
Increase in Employee Engagement and Productivity
Statistics show that nearly 80 percent of employees wish to engage in “corporate responsibility initiatives.” Philanthropy efforts that involve employees directly can create deep community connections while increasing employee engagement.
In turn, employee engagement will then increase productivity and overall business results. Gallup research has found that business teams with high employee engagement enjoy a 21 percent higher increase in productivity than their counterparts.
Improve Reputation and Brand Awareness
There is no doubt about the effects corporate philanthropy has on improving your particular brand’s reputation with customers, prospective customers, employees, partners, and the entire community.
Let’s face it, the more good things you do, the better your brand perception is going to be. By doing good stuff and engaging in positive social initiatives, you can also expand your brand’s audience significantly.
Companies are only as good and effective as their employees. With that said, today’s employees are beginning to demand attention be paid to corporate responsibility which includes philanthropy efforts.
This is a direct result of a societal shift in which employees wish for their employers to place as much importance on giving to the community as they do the pursuit of profits. In the 21st century, employees often measure the overall success of the businesses they work for and their careers in the positive impact they have on the world around them.
Who exactly is the driver behind this societal shift? Millennials for the most part. But studies show that other generations in the workforce are also involved in changing the business focus to include philanthropy efforts.
With employees becoming more and more socially conscious, they take those new values into high consideration when deciding where to work. Studies also show that Millennials are “twice as likely to rate their corporate culture as very positive” if their company practiced philanthropic volunteer efforts in and around the community.
An Increase in Sales
Philanthropy on the corporate level doesn’t just attract new talent, but it can inevitably lead to increased sales. Research shows that customers are more likely to spend their money on brands that actively support good causes.
When translated, this means that when faced with the choice of choosing between two equal products, consumers are said to be 90 percent more likely to go with the cause-branded product.
Close to 90 percent of customers also attested to purchasing products due to the fact that a company advocated for an issue they deeply care about.
Large Tax Deductions
It can take some time and lots of effort before you begin to realize the positive effects philanthropy has on brand awareness, employee engagement, attracting new talent, and increasing sales. These are all long-term goals.
But in the short-term you will quickly realize the tax savings that goes with charitable giving. Of course, you shouldn’t give with the single expectation of fending off the tax man, but ironically, giving to charity does indeed provide significant economic rewards.
In the final analysis, corporate philanthropy is all about the old tried and true notion of “what you give is what you get.”