Corporate philanthropy may have declined at times over the years, but it’s on the up again, and many would suggest this is thanks to millennials. With an estimated 70% of millennials suggesting they would spend more with a brand that supports a good cause, it proves it’s a great time to investigate this area once again as a business, for multiple reasons.
As mentioned above, most millennials are behind brands who support good causes, and as millennials are the future and they also make up a huge part of social media communities, corporate philanthropy can therefore have a hugely positive effect on marketing. A company who is seen to do fundraisers, make charitable donations, and one who sponsors local events in the community, is going to be perceived better than ones who don’t, right?
There are also financial rewards that come with making charitable donations in a way too, but they should never be made on that basis alone. It is common for businesses to receive tax deductions from work they do sponsoring events or supporting charities, but as mentioned previously, it would be unethical to carry out these activities with personal gain in mind. It’s also imperative that rules are stuck to and processes are carried out properly too.
Employees are the people responsible for making a business work. They can determine whether it succeeds or fails, and therefore it’s important for them to be happy in their work. Corporate philanthropy will no doubt have a positive influence on employee morale, with employees likely to feel very proud of where they work and more determined and motivated to do their job to the best of their ability.
This has indeed been the case for companies like Intouch Games Ltd, an online gaming entity, who launched the Intouch Global Foundation in 2017. The company donated in excess of £225K to this foundation in its first year, thus showing its solid commitment in this area.
A business being involved in charity fundraising and events will also see employees come together and work as a team to help the cause too. This will lead to the workplace being a much tighter unit, helping to further develop bonds between employees, as well as employees at different levels of the business too. This will likely result in the business performing better, enabling it to turn over more profit.
Businesses in a way are part of the community they’re in, and therefore corporate philanthropy can help to bring together the community and increase its spirit tenfold. In a community there may be schools, hospitals, children’s play areas, recreational grounds, etc. All these things are important to people, and this type of development and infrastructure will, all at one time or another, need improving.
A business who is seen to make donations which can do this is likely to be held in high regard, which will ultimately mean that locals support that company, use it as and when necessary, while also speaking positively about it to others too.
Corporate philanthropy is very much a two-way street, as both a business, and the causes it is helping, benefit greatly. It’s easy to see why companies, even huge ones such as Apple, are doing their best to help good causes. It’s likely that more and more will follow suit going forward as a result.