Companies are always on the lookout for ideas that make for good business. This is the reason why leading companies invest millions of dollars in marketing, product innovations and technology advancements. It's clear to management how these investments can help improve profitability, grow a larger customer base and fulfill other core business needs.
What isn't always apparent to senior executives is why philanthropy is good for business too. To some business leaders, corporate giving and philanthropy may seem like an "extra" or something you engage in only if there is sufficient time, money and interest to do so. In today's highly competitive market, this couldn't be further from the truth. Companies who have embraced philanthropy as a core business practice have found they reap rewards far beyond what they thought was possible. This has turned philanthropy, corporate volunteering and employee giving into corporate imperatives that can't be ignored and are an essential part of doing business.
Philanthropy gives a great meaning to the company. It's understood that companies exist to make money. Beyond this practical aspect, a company should also have a deeper vision and goals that move beyond making money. A mission of corporate philanthropy not only benefits those you give back to, it provides inspiration for employees, customers and even your shareholders. Employees realize that they work for a company that cares about more than just turning a profit, and this increases enthusiasm. Customers and investors also are more inspired to invest and buy if the company has an active philanthropy plan.
Engaging your employees is everything. People want much more out of a job than simply a paycheck and some sort of retirement account. They need this, but they also need a source of inspiration and a feeling that they work at a company that is making a difference in the world in some way. Employees who believe in the company mission are far more engaged and energetic.
Customers Are at the Core of Your Business Whether you realize it or not, your business has an unwritten social contract with the community. Meeting your customers' needs is the key to running a successful business, and this is why companies focus so many resources on customer service and improving the customer experience. Philanthropy initiatives lead to greater customer engagement by making the connection between your company, the customer experience and community building. Like employees, customers want to feel good about the companies they interact with. By showing your customers that you care about more than just selling your products, you end up with a more loyal customer base and a stronger bond with the community.
Executives are not trained to make emotional decisions; they make changes in the company based on facts and figures, not feelings. This is fine, but it doesn't always apply to consumers. Customers often base their decisions on emotions and fix their loyalty on companies that put customers and community at the forefront of their operation. For example, if you purchase computers for a local elementary school and then send employees in to help set up the new system and show kids how to use various software programs, people see this concrete example of giving, and it affects them in a positive way. It builds loyalty and improves the image of your corporate brand, and they will soon spread the good word about your company.
What isn't always apparent to senior executives is why philanthropy is good for business too. To some business leaders, corporate giving and philanthropy may seem like an "extra" or something you engage in only if there is sufficient time, money and interest to do so. In today's highly competitive market, this couldn't be further from the truth. Companies who have embraced philanthropy as a core business practice have found they reap rewards far beyond what they thought was possible. This has turned philanthropy, corporate volunteering and employee giving into corporate imperatives that can't be ignored and are an essential part of doing business.
Philanthropy gives a great meaning to the company. It's understood that companies exist to make money. Beyond this practical aspect, a company should also have a deeper vision and goals that move beyond making money. A mission of corporate philanthropy not only benefits those you give back to, it provides inspiration for employees, customers and even your shareholders. Employees realize that they work for a company that cares about more than just turning a profit, and this increases enthusiasm. Customers and investors also are more inspired to invest and buy if the company has an active philanthropy plan.
Engaging your employees is everything. People want much more out of a job than simply a paycheck and some sort of retirement account. They need this, but they also need a source of inspiration and a feeling that they work at a company that is making a difference in the world in some way. Employees who believe in the company mission are far more engaged and energetic.
Customers Are at the Core of Your Business Whether you realize it or not, your business has an unwritten social contract with the community. Meeting your customers' needs is the key to running a successful business, and this is why companies focus so many resources on customer service and improving the customer experience. Philanthropy initiatives lead to greater customer engagement by making the connection between your company, the customer experience and community building. Like employees, customers want to feel good about the companies they interact with. By showing your customers that you care about more than just selling your products, you end up with a more loyal customer base and a stronger bond with the community.
Executives are not trained to make emotional decisions; they make changes in the company based on facts and figures, not feelings. This is fine, but it doesn't always apply to consumers. Customers often base their decisions on emotions and fix their loyalty on companies that put customers and community at the forefront of their operation. For example, if you purchase computers for a local elementary school and then send employees in to help set up the new system and show kids how to use various software programs, people see this concrete example of giving, and it affects them in a positive way. It builds loyalty and improves the image of your corporate brand, and they will soon spread the good word about your company.
About the Author:
Sebastian Troup likes blogging about philanthropic solutions for businesses and non profit organizations. For additional details about the importance of business philanthropy, or to find help setting up employee volunteer programs, please check out the Truist.com site now.
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