5 Reasons Philanthropy In Business Is Beneficial

Philanthropy

Are you a business owner? Does your business practice philanthropy in any way, shape or form? For many, they simply haven’t contemplated or researched the benefits that philanthropy can bring. In recent years we’ve seen many international brands get heavily involved in philanthropic work.

Just take sports giant Nike, they strive to keep their corporate image in tip top shape by regularly getting involved with, and supporting charities worldwide. Not only do they offer financial support to charities, they also offer a wide range of scholarships and programmes to youths. It’s amazing the difference just one brand can make to hundreds of lives of others.

So why do it? Why spend your hard earned profits on others? There are a surprising number of benefits that a philanthropic approach to business can bring. Just take a look at these:

1. Reputation Management

We all like a do-gooder. By getting involved in your local community and supporting charities, or even giving up your time to help others, you will soon build a positive reputation for your business. Not only this, philanthropic activities can often spark the interest of local press and you might find that you gain some great coverage for your efforts! It’s a fantastic reputation tool and not only are you helping others, you’re helping yourself. It’s a win-win situation.

2. Repeat Customers

As consumers we tend to view brands that help others as extremely positive. If we can do our shopping or buy into a service that will also benefit a good cause then we’re likely to stick to this brand or company. Why would you want to go elsewhere? Consumers are much more likely to find your brand more appealing if profits are going back into the community rather than all in the directors back pocket!

3. Engagement Among Employees

Let’s face it, it gives you something to talk about! It’s not only great for sparking conversation with your potential customers, and for your marketing, it can create positive engagement between your employees. Today, many employees seek more than just a pay slip from their 9-5, they want fulfilment. And by offering time off for volunteering or internally organised charity events it can result in increased enthusiasm from your team.

4. People Will Remember You

Philanthropic activities also make you memorable. Let’s just take global shoe company ‘Toms’ as a case study. Their ‘give one get one’ campaign on their range of espadrilles became a huge success and their company is globally recognised for this movement. It’s a simple idea but it’s also to the point! It gives consumers a reason to remember you, and if your message is executed as well as Toms it can be extremely successful and effective.

5. It’s Good For Brand Building

Building a brand takes time and hard work. What do you want people to associate your company name with? Philanthropy gives your business meaning to the consumer and if you resonate positively in their minds they are much more likely to do business with you as many of our purchasing decisions are made upon emotion. Philanthropy can paint you as a brand with a greater purpose than just profit and paying the bills, it shows you truly care and consumers are much more likely to trust you from this.

So next time you consider your business strategies, your marketing and your brand meaning – think philanthropy! It can really bring value to your company in more ways than you could have ever imagined.

Jane Morris

Jane Morris is a UK-based BA (Hons) Marketing graduate. She currently works for Cooleraid, one of the UK’s leading watercooler suppliers.