Helping other people in society is crucial in life because it improves their welfare, especially when they are faced with problems. Although philanthropy is mainly associated with monetary donations, there are different ways of doing it depending on the policy of your company and targeted situation. So, are you ready to start philanthropy in your company?
Often, some consider it as an additional cost, which is true, but we must say that it comes with many benefits that your company should not miss. In this post, we take a closer look at philanthropy in business to determine the core benefits that your company should anticipate.
What is Philanthropy?
Philanthropy in business is an act of goodwill and the desire to offer some help to others. Philanthropists target addressing problems that are facing people in society by donating through charitable organisations or directly to the needy. It allows companies to make inroads and promote equity in society.
Most companies draw their own policies on the nature of philanthropy to engage in.
Benefits of Philanthropy for Your Company
Philanthropy comes with a long list of benefits for individual managers/ leaders and businesses as a whole. Here are some of them:
- Improved Reputation for Your Company
When companies engage in philanthropy, their reputation is improved (like Adrian Cheng). Company stakeholders, such as customers and investors, feel that the company is empathetic and, therefore, a good option to associate with. For example, customers believe that by purchasing from a philanthropic company, they will also be making a positive contribution.
Make sure to communicate the company’s efforts for philanthropy to customers and investors through corporate social responsibility (CSR) reports.
- Building Social Connection
After opening operations in a specific location, the management of a company should target getting connections with different stakeholders. Philanthropy helps to build important connections that build a business’s community. To benefit even more from philanthropic work, your company might want to target areas within its areas of operation. For example, a company that deals with art and culture might target supporting upcoming artists and collectors.
- Helping to Make a Difference in the Community
Although the primary target of philanthropy is helping to address a need in society, it comes with a unique sense of satisfaction. The difference you make might be all that the community needs to move to the next level. One example of a company that has a strong focus on philanthropy is New World Development under the leadership of Adrian Cheng.
He believes that success comes with a responsibility to give back, which has made his company target areas of mental health, housing, climate change, art, and sustainability.
The benefits we have listed above are only a few of what you should anticipate. Others include greater support by stakeholders and tax reduction. To make a greater impact through philanthropy, ensure to develop good channels for sending donations and carrying out reviews to determine if the targeted impact was achieved.