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The entrepreneurs who succeed are able to recognize and take opportunities for success. One of these opportunities is that of being more philanthropic, such as by giving back to the community. Philanthropy has been considered great for business for decades. An article published in 1988 in the journal Taiwan Today provided a great example of how philanthropy can work for business, and it still applies today: when Taiwanese companies promoted culture and arts, everyone benefited. Philanthropy can be big business for your company and that isn't new!
Companies gained a more favorable image in the public and the artists received much-needed support. There are many good reasons why your business should be giving back to the community – and it’s not just about how the community or charitable organization benefits. Philanthropy can make your business more successful. A study by Nielsen, a global information, measurement, and data company, found that 55 percent of global consumers online across 60 countries will pay more money for products or services from a company that’s committed to social responsibility, such as by having a positive social and economic influence.
The tendency to purchase socially-responsible brands is highest in Asia-Pacific, with 64 percent of consumers wanting social responsibility, such as philanthropy, from the companies they choose to support. Here are other reasons why it’s so important for your business to be more philanthropic.
Philanthropy Puts Employees On Your Side
A global generational study by London Business School and the University of Southern California uncovered what millennials in business are looking for. The results showed that most millennial workers highly prioritize workplace culture. Having personal capabilities should be part of your entrepreneurial DNA! They crave a working environment that focuses on teamwork as well as a sense of community.
By being a company that supports the community and prioritizes charity, this can foster a sense of community in your workplace. How? When your team works together on a charitable project, this can build greater satisfaction among your employees and help you succeed. Remember that if you motivate employees to want to work for you, such as by showing that your business is more than just about making money for your personal benefit, you’ll create a more positive and productive workplace.
Philanthropy Makes You Liked As A Leader
When you and your employees work together on a charitable cause, you strive towards a common goal. However, as an entrepreneur, you have to be a leader who listens and engages with his/her team to make that happen. Encourage employees to share ideas and thoughts they may have, because this will not only ensure success for your philanthropy, but also create a strong and supportive workplace filled with higher levels of engagement.
A study by Aon Hewitt found that high levels of workplace engagement are associated with talent retention and financial performance. Now’s the time to let your employees use their skills and creativity in a philanthropic endeavor, which is a great way to boost company morale and your company’s success, while doing a good deed for the community.
So, philanthropy can be big business by helping you improve your leadership and authority inside your company!
Philanthropy Develops New Skills
When your employees are engaged in a charitable project, this might be out of their comfort zone and regular work schedule. They’re brainstorming new and different ideas and strategies, which will pump fresh energy into your company. They’ll also develop new skills, which will help to boost their self-confidence and make them better employees when they’re working on your business goals.
Philanthropy Puts Your Company On The Map
Some of the most philanthropic companies are also some of the most well-known and powerful. Based on the Hurun Report’s 2010 Philanthropy List, the top 50 philanthropists in China donated approximately USD 1 .2 billion in 2010. A good example of philanthropy is Jack Ma, founder and executive chairman of Alibaba, who donated $2.9 billion in share options to education and social welfare causes in 2016. Corporate giving in China is what mostly drives charitable donations. This varies from the United States where the biggest charitable donations are from individuals, and it’s worthwhile for business owners to jump on the trend.
When you donate to a charity or host a charity event, you help get people to hear about, and remember, your business name. However, it’s important that when you put your name to a charitable cause, it matches your company’s goals. For instance, if the charity is about giving clothing to poor children and your business is about sustainable clothing for kids. The alignment of your goals with the charitable organization’s helps to show your clients and potential clients how committed you are to your business.
The bonus: since so many charities use social media to send their followers messages about their work, you’re sure to gain some of the media coverage too, which is wonderful for business.
Philanthropy Brings International Business Home
Philanthropy and social responsibility can help you propel your brand.
According to a report published in The Wall Street Journal, many companies in China have found that employee volunteerism has instilled a sense of camaraderie in the workplace. This is good for employee morale, motivation, and overall company success, but it can also encourage business from international entrepreneurs.
In the article there’s the example of Casey Wilson, who runs an organization to help micro-entrepreneurs in China. Wilson states that many international firms based in China support his company because of how it improves employee morale. Creating positive changes in your workplace and community can have a ripple effect, bringing you more business and support from other businesses which can bolster your brand.
Philanthropy Helps You Invest In Local Business, Which Helps Your Business
China is essentially a society that has collective values, where interpersonal relationships are highly important. This is a good thing, and can extend to the community, such as when leaders boost the welfare of their local community. Entrepreneur and investor Jason A Sugarman states the importance of investing in local business.
By giving back to the community, you create jobs for more local citizens, as well as ensure that local business grows so that it can make communities in which these businesses operate much stronger.
When you invest in your local community, you encourage positive changes in the world around you, which will make it more appealing for your business to operate within that community.
It’s sort of similar to real estate. If you own a beautiful mansion but the neighborhood in which you live is really terrible, this can bring down the value of your home. In business, promoting growth in your community can highlight the greatness of your own business, making people more likely to be attracted to both. Making powerful changes to the world around you by supporting and uplifting your community also means that you can connect with likeminded people, and these collaborations can lead to lucrative business, while gaining more support from members of your community.
Philanthropy Can Be Tied To Greater Rewards Within Your Company
In 2009, there were 582 cases of different forms of corporate social responsibility in China, which is three and a half times more than what was produced the year previously! Corporate social responsibility is growing fast, but it doesn’t have to solely entail large charitable projects.
It can also work on a small scale in your workplace. An idea is to make giving back to the community part of your workplace motivation, such as by giving employees bonuses when they reach their sales quota. This amount is then also donated to a charity with a cause that’s close to that employee’s heart. These ideas work to motivate employees to work harder, while the charitable organization also benefits. So, philanthropy can be big for business by helping your employees and team members to be more effective and productive with their work!
So, How Philanthropy can be big business and help you compete on a global scale?
With an increased global movement towards more social responsibility, environmental awareness, and philanthropy, it’s no longer enough to focus solely on your business goals. In fact, leading companies in China see corporate social responsibility as being an important part of their success.
When the United Nations Global Compact studied this idea, it found that Chinese business leaders are claiming it’s not enough to be on the Fortune 500 list – maintaining competitiveness on a global scale requires corporate social responsibility. As Jack Ma stated in a letter to his company’s investors, “We firmly believe that businesses in the 21st century must take responsibility to help solve the problems of society.
This is not only a moral duty, but also the foundation of our own survival and growth.” As any business owner knows, you have to keep your finger on the pulse of the latest business trends and move with the times in order to succeed. As The Conference Board’s guide on Corporate Philanthropy in China explains, with China’s current socioeconomic inequalities, such as an increase in the gap between rich and poor, philanthropy is an important opportunity for businesses to influence and lead social change.
Don’t let it pass you by...
These days, it’s big business to bring philanthropy into your business. By being the type of entrepreneur who collaborates with charitable organizations, drives positive change in the community, and supports sustainability, you can increase your business profits while also remembering that success is much more than your company’s bottom line.
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