Corporate philanthropy ranges from providing financial contributions to engaging employees in voluntary projects. It provides benefits to the company, community and employees, although It implies costs for the donators.
Every year billions of dollars are invested in charity goals. According to the research done by the Committee Encouraging Corporate Philanthropy corporations’ giving numbers increased by 64% 2010 and 2013. How the companies benefit from getting involved in charitable activities? First of all, donating to the community creates a positive image for the companies regardless its’ size, and the goodwill generated by corporate philanthropy improves customer opinions and increases their interest.
Even though, one could say that companies aim only into bolstering their own success, undoubtedly all the efforts they make are effective in growing local economies. Secondly, preserving the environment that leads to reducing of pollution and waste may lead to a more productive use of resources and improve the value of the goods. Enhancing social and economic conditions in developing countries in long term can create new productive locations for company’s operations as well as new markets for its products. What is more, corporate philanthropy may influence positively both on social and economic aspects by improving a competitive context. In the long run both goals are integrally connected and philanthropy can be the most cost-effective way to obtain them.
To give an example, improving education level may be perceived in terms of social issue, but considering society as potential workforce, it affects positively competitiveness of the company. By contributing to the universities, companies may save money that would be invested in developing training in-house. The more social improvements are related to a business of the company the more economic goals are achieved.
A lot of people donate organizations due to their personal preferences and experience. Someone who has a family member afflicted by cancer may be willing to support cancer society or organization, while an employee with disabled child would be ready to give money to Special Olympics. Therefore, philanthropy is a way to fight the problems donators know from their own experience. Setting fundraising goals involve the employees and allow them to know that company they work for care about their lives outside the office.
To sum up, fundraising brings employees together in support of a common goal, build their morale and helps improve corporate image. It is an important part of business that generates bilateral benefits for donators and organizations in need. However, to manage philanthropy activities companies have to examine the competitive context in every important geographic location.
They need to know where the social investment contributes to gaining competitive advantage, how the charitable project goes on and if the goals are achieved. Companies involved in charitable activity contribute to the growth of economy and the increase of the quality of some people life. Those aims regardless the hidden intentions of improving donator’s corporate image are significant and awe-inspiring.
To learn more: The benefits of Corporate PhilanthropyThe Competitive Advantage of Corporate Philanthropy