Why Companies Give Back: The Value of Corporate Philanthropy
This blog was originally posted in January 2017 and updated for relevance in March 2022.
Measuring the value of Corporate Philanthropy remains one of the greatest challenges for CSR professionals. Today, most consumers want to purchase from brands that are mission-driven and give back to their communities in a meaningful and impactful way. A study from Mintel shows 73% of Americans consider charitable giving in their spending decisions.
But the key to getting them to understand and recognize your company’s CSR efforts is to measure the value they provide.
How Does A Company Measure CSR Impact?
This can be affected by a variety of variables, including internal measures (ie: employee satisfaction), external measures (ie: number of causes supported), and financial measures (such as expected costs and benefits).
Businesses can begin measuring their internal impact by tracking key metrics such as employee satisfaction, organizational culture drivers (employee pride, motivation), retention rates, and brand reputation. Many companies overlook these metrics when assessing their CSR performance.
CSR efforts are often embraced by communities when organizations carefully measure them.
FACT: Nearly 70 percent of employees say they wouldn’t work for a company without a strong purpose.
A further 60 percent would take a pay cut to work at a purpose-driven company.
Companies have deployed brand campaigns, marketing efforts, and likely spent countless dollars representing a strategic persona to demonstrate who they are and what they stand for. For key stakeholders, from your target market to top job candidates, it’s more important to show actions that reflect your mission and values.
FACT: The number of employees who were considered highly engaged increased from 40% to 60% when their organization acted on today’s social issuesThe benefits of corporate philanthropy are numerous and @CyberGrants highlights some of them in their latest article. Read more here: Click to Tweet
4 Ways CSR Efforts and Corporate Philanthropy Benefit Companies
- It encourages engagement and retention among employees
- CSR efforts often bring positive press attention and sentiment
- Corporate philanthropy often offers additional name recognition
- Corporate philanthropy promotes team-building and collaboration
The Value of Corporate Philanthropy
You’re not wrong for wanting to know what corporate philanthropy can do for your company. CSR initiatives are often perceived as expensive, time-consuming, and difficult to execute. The good news is, the benefits of corporate philanthropy are numerous, ranging from increased employee engagement to improved public image and media coverage (all press is good press, but good news is the best!)
#1: Corporate Philanthropy Encourages Engagement and Retention
Approximately 77 million Americans volunteer their time, talents, and energy to make a difference in the communities they live in. Employees want to work for organizations that demonstrate the same moral, ethical, and caring behaviors they do.
Employees take pride in working for an organization that gives back to its community and will often have a higher level of employee engagement and retention than those that do not. In the currently tumultuous hiring environment, this can be a make-or-break detail for some of today's top talent.
What’s more, companies with highly-engaged employees had a near 52% gap in performance improvement in operating income, compared with companies whose employees had low engagement scores.
The human desire for purpose is strong and employees enjoy working for an organization that gives them meaningful work or the feeling of contributing to something bigger than themselves. Corporate giving provides employees with an opportunity to champion a cause for positive change and create a sense of loyalty and community within the organizations they work for.Corporate Philanthropy allows employees to champion a cause for positive change and creates a sense of loyalty to their employer. Find out how in the latest article from @CyberGrants here:Click to Tweet
# 2: Corporate Philanthropy Brings Positive Public Relations
Giving back to the local community is another tactic that can often be incorporated into your public relations strategy. When companies engage in CSR and philanthropy, they often receive positive press attention. The positive press coverage can be extremely valuable for a company’s image and makes your business more attractive to consumers.
The way your company is perceived by the public has everything to do with your bottom line. Today’s consumers are more socially and environmentally conscious than ever; it’s no exaggeration to say that brands have risen and fallen in the wake of this movement. 57% of consumers would purchase a product of lesser quality or efficacy if it was more socially or environmentally responsible.
Your philanthropic efforts send subtle messages about the businesses’ interest to the public every day. If those messages are positive, your business will prosper.
#3: Corporate Philanthropy Offers Name Recognition and Brand Loyalty
Organizations that give are usually opening themselves up to further advertising opportunities. Participate in local fundraising events and get further marketing for your name and business. Having your company’s name and logo printed on signage, t-shirts, or other marketing materials may not seem like much at the time, but it’s a proven way to increase name recognition within the community.
When companies give back to their global and local communities through CSR efforts and corporate philanthropy, they often see an increase in brand loyalty from consumers. This is because consumers feel good about supporting a company that supports causes that matter. In addition, customers are more likely to remain loyal to a company that is socially responsible and engaged in its community.
On a larger scale, two-thirds of millennials use social media platforms to share and engage with an organization's CSR. When people find a brand doing good for the causes they care about, they want those brands to succeed! Of course, they’re going to keep in touch, continue to support them, and tell their friends—don’t discount the value of word-of-mouth!
#4 Corporate Philanthropy Supports Team Building and Networking
Many businesses encourage employees (or even pay them) to volunteer for organizations they sponsor and have relationships with. Whether participating in a disaster relief project or volunteering at a local nonprofit, these types of experiences take the employee out of the work environment, create opportunities for collaboration, and foster team building. Now that’s a win-win (win?) experience!
If you can believe it, those are not the only benefits in your philanthropic endeavors: networking is another! We all know that networking and making connections are key components in any successful business.
Corporate philanthropy is an excellent gateway to the invaluable resources that come from networking. Philanthropic organizations and conferences are populated by some of the world’s most powerful individuals, creating the perfect opportunity for partnerships. Through networking and fostering relationships, your organization has the power to team up with others to make real, lasting change in the world.
The Value of Corporate Philanthropy: Priceless
There you have it. The value of corporate philanthropy? Invaluable. But the payout is huge.
Enjoy all of the aforementioned benefits, plus the satisfaction of giving back to your community in a meaningful and impactful way.
Let CyberGrants help guide your corporate philanthropy efforts to get the most out of your hard-earned dollar! Start by getting your free demo today.