Businesses often disregard philanthropy from their business plans due to several reasons. Many even consider philanthropy to be a waste of time and valuable business resources and as a result, philanthropy often comes last on the list of priorities of most businesses. However, incorporating philanthropy as a core concept of your business could actually be a very wise idea especially as a broader strategy for your business. In fact, many businesses are slowly making philanthropy a part of their core business strategy. If you are still in doubt, here are some of the benefits you can obtain for your business from philanthropy.
Appeal to your consumers emotionally.
It is no longer about pushing product down the throats of the consumers, instead, what matters now is building relationships and driving sales through these relationships. In such an environment, nothing can help garner the appreciation of your consumers better than getting involved in charity. This will not only inspire people to help the society, but they will also be proud to be associated with your products and your business. In a world where every industry is polluting the environment and adding to global warming, if your business does something to help the cause of sustainability, you would certainly appeal to the emotions of your consumers and they would instantly back you up.
While this may not give you immediate results, it will definitely help you in the long run. This is something that has been demonstrated perfectly in the poor economic conditions that prevailed during 2008. Studies and surveys have revealed that consumers supported the companies that involved themselves in philanthropic efforts more than those that did not involve themselves in similar initiatives. In fact, corporations began associating themselves with nonprofits that are likely to add more value to their brands and also enhance the perception of the brand within the community.
Reputation and market development.
Aligning your philanthropic initiatives with your business is also a very good way to help improve your reputation. In a world where emotions and sentiments matter more than ever, reputation is something that can make or break your business instantly. The goodwill that you would be generating through your philanthropic efforts will definitely garner favorable opinions for your brand. You can also directly drive sales by strategic advertisements and co-branding initiatives with the cause-driven non-profit. If this isn’t enough, building your reputation will also have a great impact on your work environment and act as a natural motivator for your employees.
Acquire talented and dedicated employees.
While philanthropy is certain to appeal to your consumers, aligning your business with suitable nonprofits that help your brand and its perception will certainly improve your brand image and also drive sales. However, what you may not have expected is the fact that this can also make your organization more desirable to prospective employees. Studies have shown that businesses which involve in practices seen as responsible in the context of social, environmental and economic impacts appeal to strongly prospective employees, as they feel proud to be a part of a giving organization.
Studies have also revealed that a large number of younger employees look forward to work environments that allow them to get involved in numerous social activities and community issues. This will not only help boost their morale but will also motivate them to work for your business with a renewed vigor.
Grow with strategic partnerships.
Finding the perfect non-profit allies for your business will help you win the trust of your consumers while also promoting the growth of otherwise under-funded non-profit organizations. Donating money may certainly help the nonprofits to a great extent, but working with them to share resources such as technology and manpower can prove to be more beneficial than anything else. You could also motivate your employees to get involved in community services through reward programs and other fringe benefits. This way, you will be sending out a message to the community suggesting that your business genuinely cares about the cause so much so that you are willing to offer more than just monetary relief.
Finally, you should also make sure that your money is spent wisely. You must make sure that your money is spent in a manner that has a positive impact on your business along with the community. When you are planning a philanthropic campaign, you need to make sure that the project and the marketing or the branding efforts that come along with your philanthropic efforts are profitable in the long run. However, at the same time looking at direct benefits from philanthropic events may not be a good idea. As this does not help your reputation in any way; rather, it makes your efforts seem shallow, and your organization seem less worthy.
The challenge in philanthropy is to sincerely support a cause, while striving to bring about a perceivable change in society, without compromising the interests of your business. It requires you to dedicate your resources, both financial and others, for the larger good of society. Quantifying the results of your philanthropic efforts is just as important as quantifying the performance of your business. It helps reveal loopholes in the approach adopted and signifies the need to rethink methodologies before a substantial amount of time and effort goes wasted.
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