It’s not unusual for a company to take on a social mission, or involve some kind of philanthropic work in the context of their business. The company Toms sells shoes at a reasonable price – not a huge diversion from the rest of the shoe industry until you realize that they give one pair away for every pair they sell.
This type of philanthropy endears customers to a company in a way that few other aspects can. They buy from this business not just to receive a good or service, but because in doing so, they also support charitable efforts as well. In this way, philanthropy greatly improves their respective bottom line.
But that’s not the only way that charitable giving can help businesses. Here are a few other.
- Recruits Better Talent
While customers may be more apt to buy from a company based on their philanthropic efforts, it’s also true that high-quality employees may be drawn to that as well. “People, planet, and revenue” are the so-called “Triple Three” that millennial employees are drawn to, according to one manager.
Nevermind the fact that nearly 78% of customers said they would refuse to buy a product from a company that had a vision that contrasted with their personal beliefs, if a company wants to attract top talent, they’ll have to have a clearly-defined social mission as well.
- Make Important Connections
Charity is the one big intersection where people from all different worlds collide. The Buffets and the Gates and the Bezos all operate within the world of philanthropy, even if their respective businesses may not overlap very much.
What this means for individual business prowess is that if a company wants to get face time with influencers, one of the best ways they can do so is by establishing a corporate social responsibility. By doing this, they’ll boost their brand, create partnerships, and piggyback off of each other’s efforts.
- Create Future Opportunities
A business doesn’t just need to give resources to a cause simply because they’re passionate about it; they can also do so because it helps create more opportunities in the future. A coffee company may decide to help local farmers in South America by providing microloans. While this will undoubtedly improve the quality of life for those farmers, it can also reap the benefits of forming a better product for their company. It’s not always about what a company gives as much as it is about how and where they give.