What is Corporate Philanthropy?
Before knowing what corporate philanthropy is, let us first define the word philanthropy.
Philanthropy, in simpler terms, can be described as the love for humans. It actually came from two Greek words Philos (loving) and Anthropos (humankind). If a person engages in the act of philanthropy, he or she is referred to as a Philanthropist.
Its purpose is to improve humans’ state of being by means my preventing and stopping social issues that may affect humankind negatively. Unlike charity, which deals with eliminating suffering due to various social problems, Philanthropy focuses on getting rid of the social problem itself.
Corporate philanthropy is basically an act of a particular corporation where they promote and invest in social causes. It is when a company decides to dedicate and allot their time for the development of various social causes or for nonprofit organizations.
Usually, corporate philanthropy is done by companies who deeply care about the world and society. The company does not gain any financial advances because it is mainly a kind of donation where they only give, and they do not receive money in return.
There are many different things that corporate philanthropy can result in, but the most evident is how it can provide a different purpose, value, and character for corporate foundation programs.
In the business world, visionary leaders often prove that corporate philanthropy, if managed properly as an investment for the whole community, actually has the capacity of becoming a strong and powerful driving force for change.
With this in mind, it would be better for society if more companies start practicing corporate philanthropy. If companies focus more on the promotion of the world’s welfare, they would be able to help a lot of people who need assistance.
Why Should Businesses Consider Corporate Philanthropy?
For starters, corporate philanthropy does not only benefit the community – it benefits the company, its employees, and its customers as well. As we all know, the current situation of the world right now can be described as skeletal.
For each business, there is a limited number of employees that are required to show up. The economy went down, and this only means that there are fewer customers than there were before the pandemic.
However, the world is trying to recover, and there is a rise in the economy nowadays. The society is now moving towards the development of environmental, economic, and social responsibilities, which means that the need for corporate philanthropy is also increasing.
Corporate philanthropy has become an essential step for a business to succeed in the 21st century.
Advantages of Corporate Philanthropy
There are a lot of advantages that corporate philanthropy brings for a corporation. Here are 5 advantages that your company will enjoy!
First of all, your company will start having a good reputation. With this, employees, prospects, customers, partners, and the society will view your company as a philanthropic corporation that does not only care about sales. You will be viewed as a company that cares about the community as well.
As a company, your act of philanthropy will draw a lot of positive attention to your brand.
Because of this positive branding, you now have the chance to maximize your engagement with your audience. Now that you have something in common with them, your target market will be more drawn to your brand.
To utilize corporate philanthropy for your company’s brand awareness, you might want to donate funds to various charities using your company’s name. Make sure that the bank account that you will use for the donation is under your company’s name.
Another thing you can do is to give your employees some rewards. By doing this, your employees will start spreading the word about your company. This will result in the promotion of your brand by word of mouth.
Corporate philanthropy does not only mean extending your company’s help to nonprofit organizations or charities – but it also means helping your employees.
Did you know that according to recent studies, up to 78% of a company’s employees were interested in taking part in various acts of philanthropy? There are actually hundreds of philanthropy programs composed of employees that help create more meaningful connections, which in turn increases their company’s employee engagement.
One research done by Cone Communications in their 2016 study proved that 74% of employees find it uplifting and fulfilling whenever they are given the opportunity to give help and promote a positive impact on issues related to society and the environment.
Another research, specifically held by Gallup, was able to identify that when a company has a high rating of employee engagement, their output, and productivity skyrockets by 21% compared to their counterparts!
It is a proven fact that a person feels better whenever they help someone in need. This is exactly how your employees will feel once they participate in your corporate philanthropy. A happy employee will yield a higher rate of productivity and accuracy when it comes to office work.
One of the key reasons why philanthropy actually exists is to create a positive social impact within the society. Corporate philanthropy will have the capacity to:
- Promote and develop social innovations
- Suggest the approval of various social issues
- Promote the success of small organizations with great visions
- Advocate for equality within the society
Good Citizens/Promote Values
Once your company participates in corporate philanthropy acts, the whole society will be moved by your act of kindness. Many people, even those who are not your regular customers, will think twice about their next actions and consider doing the same thing that you did.
Your act of kindness will trigger the good in people – your company will completely transform their point of view about the social issue that your company will take part in. In a way, your company helps in promoting the development of values in humans, which ultimately leads to the progressive increase of good citizens within society.
Types of Corporate Philanthropy
Did you know that corporate philanthropy is more than just donating money? It is also about doing volunteer work to support organizations that advocate for the betterment of the society. They can participate in outreach programs or feeding programs so that they can get hands-on experience in terms of providing assistance for the people.
The most common form of corporate philanthropy is in the form of donations. Companies often send nonprofit organizations and specific charities to support them in their advocacies. These companies act as sponsors for the organizations’ plan of action.
The companies do their best to support their chosen organizations’ programs, activities, events, and outreach projects.
The employees are also encouraged to donate to their organizations – it can be in the form of clothes, food, and even a portion of their salaries. Whenever the employees decide to donate to their chosen charities, the company will match their donations – making it a win-win-win situation!
For example, an employee decided to donate to one charity using a portion of her salary. The company will give the money to the organization on behalf of the employee, and the company will provide a gift reward for the kind-hearted employee.
Corporate Philanthropy FAQ
What are the benefits of Corporate Philanthropy?
- Employee Satisfaction
- Social impact
- Good Citizens/Promote Values
- more on Circle Acts High-impact Philanthropy