Why It’s Good for Your Business to Do Good

Written by chicceo Published in

As an entrepreneur or senior manager, you no doubt spend countless hours every month analyzing financial results and forecasts, and planning ways to increase sales or cut costs. While this is a needed and important part of business, there are also many good reasons to set up ways for your company to give back too.

Take a look at many of the top companies around the world that have charitable partnerships or projects set up, and you’ll see that “doing good” is clearly good for business. Big organizations such as Virgin, Walmart, Amazon, GE, and so many others work with not-for-profits to help change the world.

From donating employee time to charitable organizations, to giving away boats, cars, company products or actual cash, there are many ways for businesses to make a difference to the world and also see positive results for the company. If you’re thinking of ways to give back on the job, read on for some of the top reasons your business might benefit too.

Boost Employee Morale and Attract Top Talent

Charitable giving in the workplace is a fantastic way to boost the morale of the team and engender respect. Employees tend to have much more respect for leaders and companies that do their part to make the world a better place.

Businesses can look at setting up partnerships whereby a percentage of sales or profits are donated to charity, or can donate cash or items to not-for-profits to use in their operations. Many companies also choose to give staff members hours or days off from work each year to donate time to their preferred charity, or offer to match employee donations dollar for dollar.

Working for a company that makes a difference helps staff members to feel happier in the workplace, achieve more job satisfaction, build cohesion amongst their co-workers, and improve motivation. Employees who believe their work aids the community in some way also tend to feel more of a sense of work-life balance.

Good morale amongst a team leads to many benefits for a business, including less employee turnover, improved loyalty, and all round higher productivity. This helps a company in numerous ways, from reduced costs to higher profits.

Build Respect and Reputation

On top of building the respect of staff members, supporting charities also helps to engender respect from community members, and current and prospective customers. In a competitive business environment, where the services or products sold by companies often tend to be quite similar, having a reputation for giving back can make all the difference when people decide where to spend their money.

Consumers are much more likely to remember and become emotionally invested in brands and businesses that demonstrate strong ethics. By aligning with or otherwise supporting charitable organizations, a business can generate positive word of mouth and brand loyalty. Indeed, consumers tend to support socially-conscious companies so much that they’re 85 percent more likely to buy a product that’s associated with a not-for-profit.

Bonus Marketing

The marketing advantages of supporting charitable organizations can be quite profound. By supporting good causes, companies have a way to market their brand without purely “selling” it through cash spent on buying advertisements.

For example, through sponsoring an event, a cause, or another charitable act, businesses are able to get the word out about their services or products in an environment where people are more likely to notice and in a way that seems more genuine. There are also often many free press opportunities that are presented by way of supporting non-profits.

For the maximum impact though, make sure that the organization(s) supported by the business align with the ethos and/or offerings of the company. If the firm creates pet products, for instance, then a charity that benefits animals would be a perfect fit.

Networking Opportunities

Another beneficial part of charitable giving is the opportunities to network it provides. Meeting new people and creating new contacts is a great way to drum up new clients or land meetings with the right individuals. However, standard networking can be a tricky — and often unsuccessful — business that leaves both parties feeling uncomfortable.

Breaking the ice is a lot easier though if you have something in common to talk about, or a shared passion. Through getting involved in charitable causes, company leaders can generate new contacts in a more authentic way. They also have to chance to see the same people on a regular basis and therefore develop relationships in an organic way over time.

In addition, since so many top business people get involved in philanthropic organizations, attending charitable meetings and events can provide the chance to meet people you might not otherwise ever get access to. In business it’s often “who you know,” rather than what, so connecting with those who are at the top of their game can be vital. 

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