A good number of business owners see philanthropy as something that only big and very successful businesses should engage in.
While it is difficult to give when you are struggling financially, smart businesses know that philanthropy can give their enterprises an edge.
If you are on the fence regarding philanthropy, here are six reasons why your business should give back.
1. Define a Corporate Identity
Philanthropy is one way to build a business with a positive social impact.
This can be at the core of your branding and helps communicate your trustworthiness and reliability as a business.
It highlights your company not just as one out for profits, but one big on social good and making a difference in the community you exist in.
2. Can be a Differentiator
With standardized products across the market, it becomes imperative for a business to find avenues in which it can set itself aside from its competition.
Philanthropy as a differentiator can be just as effective as using superior customer experiences and can help build a strong corporate identity.
Customers, faced with a similar set of products, look for other deciding factors to help them make purchase decisions.
Philanthropy can be that deciding factor. If your competition does not have systems for giving back, this could be the competitive advantage you need.
3. Attract Top Talent
Social responsibility can help you attract top talent in the same way it does customers.
Employees today are also keen on working for and with companies with shared interests, values, and goals.
In essence, this means that your charitable efforts have the ability to attract candidates keen on philanthropy as well.
Similarly, candidates that have shared values with a company tend to experience higher levels of job satisfaction and tend to stay with an employer for longer.
For businesses, this means lower turnover rates. This is one way through which your business can make savings.
4. Boost Morale and Increase Engagement
Big and small businesses alike have challenges in engaging with their employees.
Encouraging employees to take part in your charity activities and including them in the entire process is one way to strengthen bonds and give them a heightened sense of belonging.
In its purest form, giving back makes people feel good and gives your employees a sense of connection and pride.
Evaluate the different ways in which you can do this, from giving staff time off to implement philanthropic activities, to matching employee donations per dollar.
5. Gain Customer Support
Donating to locals and supporting your community in various ways can buy your business goodwill.
When you remain consistent in these efforts, you will undoubtedly get the attention of recipients, smaller businesses, and community residents alike.
Once this happens, it’s not uncommon for the community to want to show their appreciation by patronizing your business. You will also get more customers by way of referrals.
6. Networking Opportunities
Philanthropic activities are fertile ground for your business to meet and connect with other like-minded entities.
This also opens up more business relationships and money-making opportunities for your business.
For smaller businesses, this is one way to team up with other smaller businesses and even larger businesses to pool resources to augment your charitable cause efforts.
A byproduct of this is more impactful activities and increased visibility.
Philanthropy is not easy, especially if you want to make a quick impact. Do not let this deter you. Instead, start small and grow from there.
Similarly, look into avenues to get support from employees, customers, and the community at large, as this is one sure way to enable you to scale your philanthropic efforts.