Advice from a Toronto Audit Firm: How Giving Back Can Help Your Business
There are many reasons for a business to engage in philanthropy: showing gratitude to the community that has contributed to your success, addressing an issue or injustice that is close to your heart, or simply to share your financial resources or time with those less fortunate, among others.
However, there is a myth that philanthropy is just another expense that ‘costs’ a company. In this post, we will identify why this simply isn’t true. Philanthropy is actually a fiscally responsible business practice that not only enriches the community and the cause it chooses to serve – but also makes good business sense.
Effects on Employee Morale & Public Image
Philanthropy does more than just raise awareness and funds for a cause; a positive side benefit is that it also builds your reputation as a fair, ethical, and moral business.
Workplace satisfaction company Great Place To Work recently conducted a survey of 357,000 employees, showing that employees who have had a positive experience ‘giving back’ at work were four times more likely to go the extra mile to get the job done on a major project. That increased productivity should provide a huge incentive to build philanthropic activities into the fabric of your company.
Philanthropy is also a draw to prospective new employees, making it much easier to attract top-tier talent in such a competitive market.
The Math Behind Philanthropy & Your Bottom Line
In addition to the benefits of improved employee morale and greater attractiveness to prospective talent, a positive shift in public image can drastically improve the perceived quality of your product or service. In fact, Forbes studies have shown that consumers are more willing to support philanthropic and socially responsible businesses that care about more than just the bottom line.
Increased Market Value = A Win/Win
Additional studies have suggested that corporate social responsibility increases not only the perceived value of your products, but the overall market value of your company, by enhancing attractiveness to investors. Research has also shown that companies who engage in philanthropic and socially responsible activities can charge a premium of up to 20% on their product or service offering, which could translate into increased profitability.
To learn more about how philanthropy can help your business, or to formulate a strategy to work community involvement programs into your current budget, contact us today for a free consultation.