When it comes to corporate giving, there are a few key reasons why businesses need to get involved. Corporate giving shows that your business is committed to social responsibility.
This, in turn, can help improve your brand image and make your business more attractive to prospective employees and customers. Moreover, corporate giving can also help build relationships with other companies and community leaders. And last but not least, corporate giving is a great way to give back to the community—something your employees and customers will undoubtedly appreciate.
Let’s review the benefits of corporate giving and why it’s important.
Boosting Morale and Employee Retention
Employees like to work for companies that care more than just the bottom line. Businesses make charitable donations showing that they care about the community and the world. This can help boost morale and also help with employee retention, as people will want to work for a company they can believe in.
When employees see that their company is giving back to the community, they’ll be proud to work for an organization that cares more than just its bottom line. This sense of pride can lead to increased employee motivation and productivity, which can ultimately benefit your business.
Not to mention, happy employees are more likely to stay with your company for the long haul. In fact, according to a study conducted by the Work Institute, nearly 33% of employees who quit their jobs cite “a lack of appreciation” as their reason for leaving.
So, if you want to keep your best workers around, you must show them that you appreciate their hard work. One way you can do this is by making regular corporate donations to causes your employees care about (like a donation matching program). You can also provide your employees paid time each month to volunteer with an organization of their choosing.
Not a “Nice to Have” But a “Must Have”
While corporate giving has been around for decades, its significance has recently grown. As employees and consumers alike have become more conscious of climate change, income inequality, healthcare disparities, and gender inequity, their expectations have also grown. People want to work for companies contributing to improving the world.
For example, the following stats from the Havard Business School show how employees favor companies that care more than just the bottom line.
- 95% of employees believe businesses should benefit all stakeholders—not just shareholders— including employees, customers, suppliers, and communities they operate within.
- 88% believe it’s no longer acceptable for companies to make money at the expense of society at large.
- 92% of employees who work at a company with a strong sense of purpose say they would be more likely to recommend their employer to those in their network looking for a job.
These numbers make it clear that organizations must dedicate efforts to developing Corporate Social Responsibility initiatives and corporate giving to ensure employee satisfaction and retention. (Source)
Increasing Brand Awareness and Reputation
In addition to boosting employee morale, corporate donations can also help increase brand awareness and reputation. Customers like to do business with companies that give back, so this is a great way to attract new customers while also solidifying the loyalty of existing ones.
Furthermore, media coverage of corporate donations can help spread the word even further and put the company’s name out there positively.
In today’s day and age, consumers are increasingly interested in supporting companies that care about more than just profits.
A study conducted by Boston-based PR company, Cone Communications, found that 91% of consumers are more likely to purchase products and services from companies that support social and environmental issues.
So, if you’re looking for ways to improve your business’s public image, making corporate donations is a great place to start.
Here are some other key statistics about how customers feel:
- 77% of consumers are motivated to purchase from companies committed to making the world better.
- Most American consumers – 55% – believe companies must take a stand on critical social, environmental, and political issues. (Source)
Investing in corporate giving and social responsibility programs is a worthwhile endeavor. As illustrated in the stats presented here, stakeholders, from customers to employees, increasingly consider an organization’s CSR initiatives before making important decisions. These decision-makers include:
- Customers, before making a purchase
- Investors, before allocating funding
- Employees, before choosing an organization to work for, and
- Executives, before finalizing their corporate strategy
The benefits of implementing a corporate giving program at your business are clear. Not only can it help you attract and retain top talent, but it can also boost employee morale and job satisfaction. A corporate giving program also shows your customers that you care about more than just making a profit and allows you to give back to the community where your business operates. All of these factors can lead to a positive impact on your bottom line.