The Importance of Philanthropy to Business Success

It is easy to associate philanthropic acts with an activity that is carried out after immense success. The establishment of high profile charitable foundations by famous entrepreneurs and celebrities gives the impression that success and donating go hand in hand. The reality is that if philanthropic values are woven into the very fabric of a business from the outset, then it is more likely to do well in the long term.

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Table of Contents

1 To receive, you need to give
2 Employee engagement and wellbeing
3 Promoting innovation and equality
4 PR and networking opportunities

To receive, you need to give

Let’s get the ‘woo woo’ bit out of the way, but we do believe there is a lot of truth in this – in order to receive, you have to give. Giving creates a void, a space that will need filling. And whenever there’s a void, something comes to fill it. Having given, you also need to be ready to receive.

Anne Frank – “No one has ever become poor by giving.”

Given the nature of the way in which Anne Frank lived her short life, the purest altruism always shines through.

Employee engagement and wellbeing

Being involved in projects outside of the immediate work perimeters can give your workforce a greater sense of purpose and belonging. For some employees, they may have deeply personal reasons for supporting particular charities, and having the opportunity to share their experiences in their workplace helps them on an emotional level.

Beyond the individual, working with local charities can also lower the barriers between an organization and its local communities. By giving back to local charities, many of which are also serving the potential pool of future employees, an organization is creating bridges of understanding and commitment that will strengthen local present and future networks.

Ultimately, there is plenty of evidence and studies that indicate that carrying out regular voluntary work is beneficial to emotional wellbeing, so should form part of an organization’s workplace wellbeing focus.

Promoting innovation and equality

Many of the world’s most distressing issues are not caused by lack of knowledge, but by lack of infrastructure and financial support. There is an overall inequality in the world that is often driven by factors outside of your control, whether that is environmental, economic, geographical or political. For example, we have known for decades how to get water into the driest and most remote of villages, yet it takes the drive and motivation of a charity focused on building water well structures to make them happen, rather than the local governments following though on their own responsibilities.

Every business knows it takes commitment and resources to make such projects work, andcan contribute effectively to those who can make it happen and ensure the fair and equitable distribution of funds focused on achieving specific targets.

PR and networking opportunities

There is something about working with charities that can lift your normal activities over and above your normal working practices. No matter what sector your business is working in, the interest in charitable activities sparks interest on a human level.

Supporting external charities creates brilliant opportunities for networking. You will find that the more proactive you are, the more others in your industry will follow your lead. This positions you as a position of authority and leadership which not only places you at the front of people’s thoughts hen they need your services – it also gives great materials which can be used for PR and marketing activities.

If you are at the beginning of your business journey, give some time and thought to instilling a philanthropic approach to everything that you do from as early on as possible. The more ingrained it becomes for the get go, the more it will take hold and help to drive your business forward, further than you even believed possible.

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