Philanthropy Is Good Business

By | March 11, 2015

Businesses that contribute to philanthropy aren’t just benefiting the human condition. Directly associating with a charity organization can benefit the company as well, whether it is a small business or a corporation. Here are some advantages to making philanthropy an active part of your business.

Identification With Your Community

Small businesses that are attempting to grow need to develop personal relationships within their community that will build their business. Familiarity within the community is also important, since most potential customers are looking for a business that has an established reputation. Becoming involved in a charity that is important to the local community is one way of developing relationships with people that can build a customer base in a non-threatening way.

Greater Motivation And Unity Among Employees

Today employees are feeling very disenfranchised from their own companies. There are a lot of reasons for the dissatisfaction, but one of the most expressed needs among employees is that they feel their company really doesn’t care about them as an individual. Companies are realizing that employee satisfaction affects productivity, and they are reaching back by trying to develop a family spirit within their organization.

Encouraging employees to become involved in a philanthropic endeavor that is sponsored by the company is one way to develop that unity, since Americans are givers by nature. They enjoy being able to contribute to their own community, but many of them lack direction on how to help. Being able to donate time or resources to a company charity gives them an outlet that can make them feel more significant as human beings. It also develops a team spirit, which can only result in increased motivation and productivity.

It should be noted that involvement in a company-sponsored charity should be encouraged, but never required. Charity involvement that is insisted upon defeats the purpose of charity giving, which comes from an unselfish desire to help others. The best way that upper level management can encourage employees to become involved in a charity is to pattern that behavior themselves. Leadership by example is a far better magnet than coercion. Such businesses as Charles Phillips Infor have greatly benefited from this type of philanthropic association.

Attracting New Employees

Job applicants often are looking for more from a business than just the rate of pay. They want a chance to use their talents, be successful at their job, and be a part of a growing organization that is firmly planted and earmarked as a success in their community.

Being involved in a charity is good advertising for a business. As more people become aware of the existence of a company in their community, more people will apply for jobs, which will result in a greater pool from which to draw local talent.

The Ripple Effect

Since many charities have a worldwide emphasis, when an organization affiliates with a charity, there is often another type of passive advertising that occurs. Even a small business can become known in much larger circles that can produce worldwide connections in philanthropy. These connections can spawn other business relationships which are directly beneficial to the growth of the company involved.

The benefits of philanthropy can outweigh the finances expended, and result in greater exposure that can be very helpful to a growing company.