5 Ways Companies that Focus on the “Social Good” also Help Themselves  

These days, philanthropy is becoming an integral part of a business plan. While in previous years money would be directed to a marketing department, product development, technology, and so on, today many businesses of all sizes are also investing into philanthropy.

There are many benefits to philanthropic business, and it’s definitely something your business should be considering, if it hasn’t already. In today’s highly competitive market, it’s important to stand out, and those companies who have embraced philanthropic business practice can have the edge over those who are slow to adopt this movement.

So what is philanthropy in terms of a business practice?

Philanthropy is all about giving back, becoming active in the community and volunteering with worthwhile causes. It can do amazing things for your business, and your brand.

It Builds Your Reputation
If you’re seen to be doing well within the community and supporting important causes, then this can only be a good thing. It will help you to build a strong reputation and generate positive emotion towards your business from outsiders including potential customers, suppliers and investors. Many of our decisions are made based on emotion and a well-executed philanthropic approach can resonate with consumers. 

It Can Enhance Engagement
This encompasses not only employee engagement, but engagement within the local community and with customers. Employee engagement is especially crucial, as employees seek more from their jobs than just the 9-5 and a monthly wage. The conversation and relationships it can create with customers are also important.

In addition, a philanthropic focus can build stronger team relationships, in that it can offer much-needed inspiration and enthusiasm for your team to get involved beyond the day-to-day “cubicle mentality.” This can be either through volunteering or overseeing local projects and charity work.

It Can Improve Customer Loyalty
Customers are much more likely to return and repeat purchase with a company that they deem to be making a positive impact, as they are also directly supporting this. Why would they want to shop for the same product elsewhere when they can buy it from you, and also feel good about it? It allows the customer to be a part of your mission and this is often a major selling point.

It Can Build Your Brand
When people think of your brand, and they associate it with positive work and charity then this is fantastic. It gives your brand extended meaning, and puts you beyond whichever product or service it is that you might sell. It shows that you aren’t just about profits, and have a sense of greater purpose. 

It Makes You Memorable
This is true especially if you have a quirky and/or strong strategy, as is the case with Toms, a shoe company that donates a pair of shoes to underprivileged children every time a pair is sold. They call it one for one. It’s simple, but it’s a bold message and extremely successful, memorable and effective. You get the point.

Businesses of all sizes are beginning to see the benefits of philanthropy and how it can give them the edge over competitors. One great case study, and an early adopter of a philanthropic strategy was Cooleraid, a U.K.-based supplier of water coolers, dispensers and boilers, whose motto is “Water with Integrity.” After a visit to Malawi, the founder of Cooleraid was shocked by the poverty and the widespread problem of orphans. Determined to make a change, they set up the Lifeline Fund, with a percentage of profits from Cooleraid to be donated to the fund. In 2015 the company reached a total donation amount of 5 million pounds! This is just an example of how much difference just one company can make for the lives of others.

So, What Can you Do?

Here are a few pointers; obviously, the level at which you can dedicate yourself to this philanthropic approach relies largely on the size and capability of your business. But a few ideas to consider include the following:

• Volunteer for a local charity
• Hold regular fundraisers
• Support a charity financially through your profits
• Get involved with aiding community events