Most companies are looking into methods through which they can support their communities and assume responsibility for their societal impact. And one of the most popular ways of fulfilling these goals is through corporate philanthropy. In the past few years, business philanthropy has become increasingly popular, and consumers now expect a certain level of transparency and accountability from these corporate entities. If you are wondering what corporate philanthropy is, this article will help you and inform you about its various benefits.
What Is Corporate Philanthropy
Those activities that companies voluntarily participate in to manage their impact on society can be termed corporate philanthropy. These can include monetary investments, donations, volunteer programs, or other arrangements to support any social cause.
Benefits Of Corporate Philanthropy
Let us look at some of the advantages of corporate philanthropy.
Increases Productivity and Employee Engagement
Studies suggest that more than 78% of employees wish to participate in philanthropic practices. Those programs directly involving employees help create deeper connections and improve employee engagement. That, in turn, improves productivity and the overall business. Research by Gallup found that teams with high employee engagement have 21% more productivity than their counterparts.
To reap these benefits, you must create strategic corporate philanthropy programs that encourage employees to get involved. For example, you can allow your employees to select those charities they wish to donate to or create crowdfunding campaigns and use paid volunteering to enhance their impact. If you can allow your employees to choose those charities they wish to help, they will become more invested in the process. Eventually, you will find a direct correlation between greater engagement and better productivity.
Improves Brand Awareness and Reputation
Corporate philanthropy can also help improve a brand’s reputation with its customers, partners, prospects, employees, and the community. The more you contribute, the better your brand perception will be. Business philanthropy can also maximize those opportunities where your audience would like to connect with your brand due to your positive social initiatives.
In order to improve your brand reputation, you must consider donating funds under your company’s name. You can donate via a central account that will ensure your brand is connected with those corporate donations. Offering employees crowdfunding tools and matching gift programs can also increase your impact. These will create a buzz among them, thereby promoting your brand through positive word-of-mouth. Crowdfunding campaigns can also bring other individuals and businesses. They are useful for increasing your donations and helping people connect your company with charitable initiatives.
Helps Attract the Top Talent
Employees have gone through a significant change in the past few years. Nowadays, they are persuading companies to pay attention to their corporate responsibilities, including philanthropic practices. These days, employees are balancing their successful careers, the business they work for in advancement as well as their positive impact on the world.
While millennials are the most crucial cause of this shift in perception, people from other generations are also involved. When an employee becomes socially conscious, they consider those values before deciding where to work. In comparison, more than half of the employees are not willing to work for a company that does not have a strong CSR commitment. Hence, by making your company socially and environmentally responsible, you can attract and retain the top talents in your field.
You will need to market your programs as an employee benefit if you wish to achieve these corporate philanthropy benefits. For example, if you have software that informs you about pre-tax contributions and matching gifts, you can include that in your job descriptions, advertisements, and postings. You can use the same tactics for current employees to encourage them to engage with your company. If they can become more involved and find out the impact your company makes, they are more likely to stay.
Apart from attracting the right talent, corporate philanthropy can also get new customers. Studies suggest that people tend to spend more on brands that stand for some noble cause. When choosing between two equal-value brands, 90% of them will switch to that brand that supports a cause. Similarly, 87% of people feel like purchasing a product from a company that advocates an important issue.
You need to market your corporate philanthropy activities to the people to see this benefit. You can use any of these approaches, from advertisements to social media posts that highlight contributions to any other awareness-level activities. You can also link your products directly to such charities. When those products are purchased, your company can donate a specific amount to charity.
While most of the benefits of corporate philanthropy tend to take time, one thing that you will notice much earlier is the tax savings associated with donations. While most companies do not donate just for financial gains, helping a charity can gain you some economic rewards. Usually, companies receive tax deductions because of their donations. However, one must consult with finance professionals to gain maximum benefits.
While corporate philanthropy can be one of the most time-consuming and management-intensive CR strategies, you must track and record your donations if you wish to handle your tax needs properly. You can take the help of corporate philanthropy platforms that can help you streamline your programs. The best ones can also provide you with a list of approved charities so that you do not need to worry about the authenticity of the organizations.
These are some of the most important benefits of corporate philanthropy within a company culture. If you can use strategic corporate philanthropy practices, you will find a boost in employee engagement, more productivity, better sales, greater tax savings, and better employees. Hence, business owners must look for opportunities to contribute to society.
Leave a Reply