It’s been asked before, “What is the return on corporate giving?” In today’s more socially conscious world, many businesses seem to enact change in their communities and around the world without any ulterior motive. But the truth is, corporate giving can improve your company’s financial standing at the same time it betters the lives of the people around you.
Benefits of a Good Corporate Giving Strategy
Increase Brand Recognition
Many things can help to increase brand recognition for your company, from consistent quality to celebrity endorsement. Corporate giving is one more way you can ensure your business stays in the minds of your potential customers.
It turns out customers react really strongly to evidence that a company is giving back to their community or the world in general. A recent study determined that not only do 9 in 10 people (89%) prefer to spend their money on companies with social or environmental goals, but 92% would actually switch brands in order to support that more socially conscious business.
Corporate giving is one more way you can ensure your business stays in the minds of your potential customers.
The study also showed that 65% of people hunt down a company’s philanthropic efforts corporate giving strategies when choosing where to make their purchases. This means simply doing good – and making sure to share the good you’re doing – will go a long way to making your business a family name.
Ensure Your Business’ Longevity
It’s not too surprising that increasing your brand’s recognition – and thereby improving brand loyalty – will contribute to keeping you around for the long haul. A solid corporate giving strategy can mean the difference between a quick burnout and a legacy.
This correlation was already recognized back in 2008. A study entitled Corporate Citizenship: Profiting from a sustainable business pointed out that even if an obvious ROI from corporate social responsibility isn’t available, such efforts are vital to keeping a business alive in the long run.
A solid corporate giving strategy can mean the difference between a quick burnout and a legacy.
The study, which surveyed more than 500 people in business in the United States, found that most companies put their corporate giving strategy in place for financial reasons such as “increasing profit” and “revenue growth”. These strategies must have had the desired results: half the subjects planned to increase their corporate giving budget in the coming years.
Just think of the list of global companies top-ranked for their social responsibility efforts; can you imagine Google, Apple, BMW, or Microsoft disappearing in the near future?
Improve Employee Loyalty
Corporate giving efforts don’t just keep your customers loyal, they retain dedicated employees, too. A 2014 study by Nielson found that 67% of people are happier working for companies that are socially responsible, and in a 2015 Global Tolerance survey, more than 50% of workers said they would work harder if they knew “their company benefited society.”
Employers are noticing the difference, too. In 2013, an interviewer spoke to companies about the benefits of their corporate giving strategies, and found that 86% felt they had happier employees, and 76% believed they had found better employees thanks to their ability to attract more capable people or contribute to employee personal development.
Corporate giving efforts don’t just keep your customers loyal, they retain dedicated employees, too.
Whether you’re taking donations in exchange for the right to wear jeans on Friday, donating your services to people who couldn’t otherwise afford them, or offering EDOs or donations to charities in exchange for volunteer hours, company strategies that encourage giving back and doing good are proven to impress your workers, and evidently help your workers impress you, too.
The bottom line? Yes – your philanthropic efforts can positively affect your bottom line! If you’re on the cusp of developing your own corporate giving strategy, the well-versed experts at HeartPress PR are here to help. Start giving back and doing good, and watch as your company – and your community thrive.