3 Positive Business Side-Effects of Philanthropy
Philanthropy and corporate social responsibility are meaty topics in the business space.
In their ideal form, it’s a way of conducting business with the intention of sincerely giving back to the community without an ulterior motive or expectation of direct financial gain. This being said, there are inevitable commercial benefits that come with giving back, beyond the feel-good effect.
Here are 3 positive side effects of giving back.
Lift Staff Morale
The happiness of your employees is a critical factor to a business’s success.. It’s your team that ultimately determines your company culture, which in turn impacts the performance of the business as a whole. An inspired, cohesive, collaborative and fulfilled team is one of the most powerful and valuable assets a business can cultivate.
Employees respect leaders that do good, and a company that gives back to its community creates a sense of pride and high regard among its employees. Greater job satisfaction and good morale enables employees to withstand the daily grind and make the workplace a more positive environment for all. This has obvious flow on effects to customers, as happy staff will have more positive interactions with their customers.
A simple way to involve staff in your corporate social responsibility efforts is to setup a custom volunteering program. This can be as simple as organising a monthly get together, during or after work hours, to give back to the community. Participating in these activities can not only be deeply rewarding for staff but always builds a closer team leading to improved collaboration, performance and support.
Expand Your Network
The collective quality and clout of your professional and personal network plays a major role in the opportunities you’re exposed to. How often has a business opportunity come about purely because of an introduction?
Moving in influential circles can do wonders for the boosting of your own influence, and philanthropic organisations are where you’ll find some of the world’s most powerful individuals. By contributing to these organisations you gain a level of access and the opportunity to meet and connect with these highly successful people.
These connections are an invaluable resource for business leaders and entrepreneurs looking to generate interest and support in their own endeavours. The truth is, we tend to look favourably upon those who support similar initiatives to us as we develop mutual respect and trust; these qualities are of course imperative to establishing and maintaining business relationships. As philanthropic pursuits tend to reveal someone’s values (e.g. environmental activism, sustainability, women’s rights, etc.) these are a positive avenue to rub shoulders with high profile individuals by bonding over shared beliefs and common causes.
Build a Positive Community Image
There’s no doubt that a good reputation amongst the general public can serve a business positively. Purchases are largely emotional transactions, and today, there is a consumer movement towards supporting brands that share in their values and social causes. If people look upon your business with good-natured thoughts and positive emotions, it’s easy to see how this can translate to improved brand advocacy and increased sales.
Building goodwill in your community can be as simple as sponsoring or donating to a local sporting club, school or arts organisation, or supporting environmental and green initiatives. Aside from the positive word of mouth effect this can have, your contribution can directly improve the lives of your community’s members, and effect a healthier and more prosperous future. What’s more, today there are countless avenues to promote your social and community involvement including your website, blog, eNewsletters and social media accounts.
Successful leaders recognise the positive far-reaching returns that philanthropic efforts and corporate social responsibility brings to their organisation. It goes without saying that if it’s a cause close to your heart, you will also reap the emotional rewards of personal satisfaction and fulfilment that comes with giving back.
TWD’s experienced advisers ensure their clients philanthropic goals are incorporated into their financial plans.
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