Maggie F. Keenan, Ed.D.

Giving Makes Good Business Sense

Giving back to communities and causes is a good thing for small businesses to do. However, it's not the giving in and of itself that makes a difference.  It's how it's done that is the key to success.

We all know that company charitable giving makes a difference, some how, some way. Donations that count, charities it supports, people it helps. Besides, it’s just a good thing to do, right? But giving for the sake of gaining a bit more pr for you business or because you feel you should be the good neighbor to all charities, simply doesn't have the impact.

Giving, when done correctly and strategically can have a huge impact on your business and the causes you give to. Most of us know how donations can help organizations, but how exactly does it help the company? Numerous studies have been done on this very subject. Here are a few of the benefits from giving:

• Enhance company image in your community
• Increase sales
• Establish reservoir of goodwill
• Increase consumer loyalty
• Increase employee motivation and loyalty
• Heighten brand and product awareness
• Attract and retains employees

In a study conducted by a Boston marketing company, they found that philanthropy efforts influence consumer decisions.  Findings:

·         90% of people surveyed said a company can earn their trust by donating to charitable cause. 

·         Nearly 70% said they would pay more for a product linked to a cause.

·          85% want to see companies doing business in their community.

·         81% would be influenced to work for a company that gave.

·         74%% said they would switch retailers or brands to one associated with a good cause and recommend it to others.

·         Almost 70% had greater trust in companies aligned with a social issue and would consider investing in the company.

After reading these stats, giving seems like it makes good business sense. However, philanthropy is not a fail proof test. You have to be a straight up business owner too.  Nearly 85% of consumers care that a company treats its employees well and fairly and 83% said its executives and business practices should be ethical, honest, and responsible.

It's hard to argue that giving isn't good. What makes a difference is how it's done. Writing a few checks, donating time here and there, giving away product isn't going to make the impact for the company in and of itself. When a business implements a giving plan and when it's done correctly, the impact is grand and you feel good too.

©  2007. Maggie F. Keenan, Ed.D.  All Rights reserved.

Article Tags: Makes Good Business, Good Business Sense, Giving Makes, Makes Good, Good Business, Business Sense

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