Why Philanthropy is Good for Business

Businessmen and women holding hands

Corporate philanthropy can actually be great for business.
Image: Shutterstock

Of course it feels good to give, but did you know there are actually professional business benefits as well? As corporate giving increases, the positive outcomes for both businesses and the community continue to grow. Here’s a look at just a few.

Building relationships

When a business dedicates time and money to a cause, it shows a drive for positive change. This can be a great way for a business to build relationships—often relationships that lead to future customers and business opportunities. When a business shows outstanding dedication to Corporate Social Responsibility (CSR), they are proving to customers, both potential and current, that the future of the community matters to them. This can lead to an increase in brand loyalty down the line.

Building a brand

Big name partnerships between philanthropic organizations and businesses lead to more exposure for both. The United Way, for instance, has a variety of notable partnerships with businesses such as the NFL. And according to the CSR Branding Survey 2010, 75% of those who read about a company’s social responsibility agenda said it made them more likely to purchase from that company in the future. They also said they were more likely to tell a friend about the business. That’s a great way to spread the word about what your company offers!

Building employee engagement

Corporate philanthropic giving can also be a great way to engage employees and create a sense of community, with everyone working toward a larger goal. Many companies now encourage their employees to volunteer, which can add to a worker’s energy and drive. Not only does getting involved make your business look good; it also helps the people within that business get motivated and feel good about working together toward a larger goal. And of course it’s great for the outside community your employees are helping, too!

Bill Gates, an avid philanthropist as well as businessman, once said, “As we look ahead into the next century, leaders will be those who empower others.” More and more, businesses are proving their abilities and the quality of their services by getting out into the community and showing an interest helping with the problems of the larger world around them.

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