Most company owners think that philanthropy in business comes after success. Few realise that philanthropy should be incorporated into the business to achieve more success. They should be applied and success will soon follow.
A study conducted by Nielsen found that as much as 55% of global consumers are willing to pay more money for services and products from a company with a well-known social responsibility. As much as 64% of consumers from the Asia-Pacific region believe in purchasing from socially responsible brands.
Why Philanthropy is Good For the Business
Companies who engage in philanthropy gain a favourable public image and have a higher tendency to be more successful. The success of the business depends on how much the company does for its employees and its contribution to the world as a whole. By having some sort of philanthropy in your business will help:
Bring Employees Together
Working on a charitable project can help foster a sense of community in the workplace. This will encourage your employees to gain satisfaction that will keep them motivated to work for your business. Businesses are known to exist more than about making money have employees that are more dedicated to their jobs. When this happens, your business can have a productive workplace and earn more profit in the long run.
Enhance Leadership Skills
As you work with your employees on a charitable cause makes you stand out as a leader. As a leader, you will encourage your employees to contribute their ideas about the project and this will help make you a better leader, which will create a workplace with higher levels of engagement.
When you engage your employees, you will retain them and make good use of their talents, leading to better financial performance for your company. Additionally, boosting company morale through philanthropic endeavours whilst serving the community is a great background for your business.
Develop New Skills
Asking your employees to work on a charitable cause will enable them to develop new skills they did not know they had. Working on a project outside of their expertise may bring them out of their comfort zone and regular work schedule and this will help them come up with fresh ideas and strategies to make the project work. Allowing your employees to develop a new set of skills will boost their confidence and morale making them better employees.
Boost Your Company Popularity
Ever noticed why most philanthropic companies are popular? Alibaba, for one, is one of the most popular companies of today despite being in the business for only several years. One of the contributing factors in Alibaba’s popularity is the company’s thrust towards philanthropy. IN 2016, Alibaba and its founder Jack Ma, has donated over $3 billion in share options to social welfare and education.
It is easy to remember a company who took part in a charitable event. The event should match the company goal. There should be an alignment with the charitable organisation and your goals as a company so more people will see authenticity in your mission.
It is also a good help that most charitable institutions broadcast their events and projects using social media as this can cause a needed exposure for your company.
Bring International Investments
Philanthropy has no boundaries and this is evident in the number of investments brought about by charitable causes to local businesses. When international businesses see that your charitable causes and business intentions are aligned with their mission, they are more likely to invest in a local company. This will bring in more capitalisation and international recognition. Aside from that, it will also boost employee morale. Even small positive changes within the businesses can have a ripple effect such as bringing in more financial support for your business.
Encourage Business Tie-Ups
In Asia where interpersonal relationships are sacred, working together as a community creates a great impact. Businesses who share the same passion can work together in a charitable project, which can eventually result in a business tie-up. Companies working together will bring in more jobs and economic stability, allowing your business to become stronger and more profitable.
Promote Greater Internal Rewards
A company committed to social responsibility has more credibility. When a company gives back to the community, it exudes a more honest and credible reputation. This is especially true when companies sell products aligned with their cause. Many consumers will choose to buy from a company committed to a charitable project even if it costs more because they believe a large part of the profit goes to the project. In a way, consumers feel they contribute to charity as well though indirectly.
How Philanthropic Should Your Business Be
Doing good in business brings more rewards than often realised. Philanthropy in a business increases global movement towards more inclusive social responsibility and awareness. Leading and managing a business is no longer about the business alone. It must be towards corporate social responsibility. For example, businesses in China with strong social responsibility. Leaders believe that belonging to the Fortune 500 list is not enough to say a company is successful. Being socially responsible will promote global competitiveness. Jack Ma, a Chinese magnate and philanthropist, claims the 21st-century businesses have a responsibility to solve societal problems and issues. It is no longer a moral duty but also a means to survive and grow.
One of the basic tenets of keeping a business is its awareness of trends. Today, philanthropy is at the core of this trend. It serves as an opportunity for business to impart a positive influence that will help lead social changes. For this reason, big businesses are now incorporating charitable works into their organisation. No matter how big or small, it will go a long way. Supporting sustainability will increase the company’s profits but more than that, recognition for doing good amidst all the negativity in the world today.
How philanthropic should your business be? It depends on your capacity and willingness to contribute to the greater good.