Modern businesses and brands do well by strategically doing good. Charitable giving can benefit your company in more ways than one. In addition to significantly impacting the recipients of your company’s generosity, it can distinguish your company in the eyes of your employees and your customers.
Creating a company culture of giving back has been shown to boost employee morale and productivity, improve a company’s brand image, build customer relationships, and more—all of which have clear and tangible business outcomes and are backed by research studies.
What are 3 significant benefits of charitable giving?
- Positive employee engagement
- Increased brand loyalty
- Improved business performance
We’ll go over the benefits of corporate philanthropy in greater detail below.
Positive Employee Engagement
One of the most favorable outcomes of corporate charitable giving is increased employee engagement and retention. Finding talent is easier when your company has defined values demonstrated through giving programs.
Today’s employees want to make valuable contributions to society and are looking for work that means something more. More importantly, nearly 71% of employees want employers to provide opportunities to help them make an impact. Meeting these expectations is crucial if you want to find the right talent since nearly 1/3rd of senior leaders state “obtaining the right talent” as their most significant managerial challenge.
Not only can a charitable giving strategy attract potential employees, but it can also help you retain them. 75% of employees who engage in corporate giving programs stay longer at said corporations as they find their jobs more fulfilling.
Evidence suggests that companies with a charitable giving program benefit from increased employee performance. This is especially true among millennial employees, as 88% of millennials find their jobs more fulfilling when given the opportunity to make a positive impact on society and the environment.
And it’s not just millennials who seek value-driven companies. By 2025, Gen Z workers will make up 27% of the workforce, and they want their employers to make a difference. 81% of them are searching for an employer that matches their values, and 41% believe that CEOs should be judged by their commitments to solving social issues.
In short, having a charitable giving strategy in place increases your company’s current employee engagement, net promoter score, and ability to recruit new, top-tier talent.
Increased Brand Loyalty
Beyond better employee retention and engagement, corporate charitable giving can also increase your company’s consumer brand loyalty and affinity.
Over 25 years of collected data, researchers have found that the social impact of companies is increasingly changing consumer behavior. People are demanding more from the companies they support, with 55% of American consumers believing it’s important for companies to take a stand on key social and environmental issues. The companies that do so benefit greatly as 88% of consumers are more loyal to them.
Long-term commitment to social impact correlates with a positive brand image. When companies consistently support social issues over time, 92% of consumers are more likely to have a positive image of them.
Improved Business Performance
Every company wants to have great financial results. Establishing a charitable giving strategy positively affects your value, growth, and bottom line.
According to IR Magazine, high-purpose brands with positive employee engagement and strong consumer brand loyalty doubled their value 4x faster than low-purpose ones. Harvard researchers have also found that 58% of companies with a defined purpose experienced 10% more growth than those without one.
When brands stick to a philanthropic plan, they are more likely to attract and retain talent while also building brand loyalty, as 87% of consumers will purchase products because of a company’s social impact. This increase in customer loyalty has also been shown to result in a 20% increase in sales revenue, increasing brand value and demonstrating that purpose is indeed profitable.
Make a Positive Impact on Your Employees, Consumers, and the World
Charitable giving has become essential to companies’ brands, forming their core missions and identities. Employees and consumers alike seek brands that take a stand for issues.
By developing a charitable giving strategy, your company can make a difference in the world—and your bottom line. Givinga’s solutions make it easy to get started. We’ll help you transform your company’s culture, build brand affinity, and cultivate everyday philanthropy for everybody involved. With millions of vetted charities and seamless engagement tools, make your brand a high-purpose one. Schedule a demo today!