Most of the business owners and executives find philanthropy as something extra that they would do only when they have time and money. They feel that the acts of giving may not fetch them such rewards that some marketing or advertising strategies bring along. However, business owners need to know that philanthropy can be highly contributing to their business. Following are some reasons why philanthropy would do more good to your business than just adding to your personal image.
Improved customer experience: Every business depends on its customers. Thus, it is important to meet their needs as well as develop a sense of trust in their minds. Philanthropy is a good way to show that you care. Involvement of a business in the acts of giving or charities helps in increasing their interaction with the community as well as the customers. If you are a hard-core business that concentrate on profits, then customers may not experience its soft side. Philanthropy is a way to show that soft side of your business to your customers. This helps in winning loyal customers who bond well with your brand.
Better rand image: Businesses that engage in philanthropic acts are perceived to be more trustworthy and giving. The acts of serving the community improve a brand’s image in the eyes of customers and stakeholders. This makes them proud to be associated with a business that thinks beyond profits and fulfills its responsibility of giving back to the community for which it operates.
Employee engagement: It is not only about customers who want more out of a business, but also about its employees who expect enriching growth with a business. Employees in today’s competitive business world want to be associated with such companies that can give them more than a paycheck. Involving your business and employees in the acts of philanthropy can make it a fulfilling experience for all. Your employees will be more productive and inspired when they feel happy after doing something that adds value to the lives of others.
Sense of purpose: Although the main purpose of a business is to earn profits, it gains a broader sense of purpose by engaging in philanthropic acts. Through your resources, you fulfill the responsibility of serving the community in a more positive way. It also leads to a creative culture and higher growth for your business.
Triggering positive feelings: While a business operates on the basis of hard facts and figures, it cannot create an appeal, if it does not trigger the emotions of its customers. If hard sales are accompanied by philanthropic acts, then it can generate positive emotions like enthusiasm and inspiration among customers too. Even a creative ad may not do what a philanthropic business can do to its authentic brand image.