Why Philanthropy Is Important for Corporate Executives

Businesses are frequently created to solve problems, so aligning humanitarian efforts can often be a logical extension of your company’s mission. Corporate philanthropy is the social conscious mission and behavior of a company. This typically incorporates direct charitable giving, such as with matching gifts, volunteer grants, establishing in-house foundations, or working alongside existing nonprofits.

There are other reasons to give, let’s learn why philanthropy is important for corporate executives.

The Positive PR

Generosity aligned with the goals of a business can be truly transformative. Aligning with a cause a company cares about positively impacts the community and creates a synergistic relationship for all parties involved. Thus, corporate philanthropy can generate mentions on social media and be a source of favorable reporting about the company. The latter has the added benefit of being considered a highly trusted source. This means that you can share the news articles about how your company benefits communities on social media, and it will be given more weight by search engines when people search for information about your company.

The Impact on Morale

Charitable donations by the company or its leadership can have a tremendous impact on morale. Employees aren’t working to make you rich, they’re helping the community. The morale-boosting effect can be amplified if the donations are truly a team effort. Whether the company’s leadership matches employee donations to charity or everyone comes together to work on a charitable project, it shows that everyone is working together for a good cause.

The Financial Benefits

When you have a demonstrated positive relationship with the community, you may earn recognition, loyalty, and trust. This type of trust can lead to an increased chance consumers will choose your company, thus resulting in an increase in revenue. Research has shown 7 in 10 consumers noted that socially conscious concerns are important for trusting a brand. In fact, 8 in 10 consumers believe that trusting a brand to do what is right is a deciding factor in a purchase decision.

Not to mention, when you donate money to a non-profit, you may also earn tax deductions.

The Benefits to the Community You Serve

Philanthropy can be aimed toward meeting a specific need in the community. For example, many companies donate time, money and material to food banks. A good example is Plexus President of Operations and International, Christopher Pair. Plexus is a company renowned for its high-quality, nutritional weight loss supplements, they are known for their partnerships with Feeding America and Mary’s Meals. Partnerships with these nonprofits reflect Christopher Pair’s personal desire to end malnutrition in the United States.

The philanthropic effort can even indirectly aid the company’s objectives. For example, investing money into the local schools or higher education can result in more qualified job applicants down the line. The classic case study is when a hospital donates money to a nursing program so that they can train more nurses.

The Increasing Impact of Philanthropy on Recruitment

Philanthropy is becoming ever more important when it comes to recruitment.

Millennials, who are a major portion of the current workforce, are far more civically oriented than prior generations. Many of them want to work for companies that donate to causes they support. Research indicates two-thirds of Millennials won’t work for a company that does not prioritize corporate philanthropy efforts. They value company values over money, for better and for worse. This means your philanthropic efforts aid your recruitment of young talent.

Author Bio

Christopher joined Plexus Worldwide in March 2018 as President of Operations and International. In this role, he oversees the company’s distribution, manufacturing, logistics, finance and accounting departments, information technology department, legal, compliance – quality, project management department, and international. Christopher is a recognized expert in global operations and international expansion. His career includes more than 15 years at Herbalife, where he led the organization’s successful international expansion, eventually taking the role of President and CEO of the multi-billion-dollar company.

Christopher Pair holds an MBA and BS from University of Redlands. He has served on numerous boards, including his role as a former Vice-Chairman and a Director of The Direct Selling Association, as well as a former Director of the Consumer Health Products Association. He was also a Founding member of the Eagle & Badge Foundation and was a member of the Council for Responsible Nutrition.

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