Microsoft co-founder and billionaire Bill Gates is not just known as a living legend in computing. He is also a highly-regarded philanthropist. Now that he’s no longer the head of Microsoft, he is using his time to make the world a better place.
Although Mark Zuckerberg’s Facebook (now Meta) has been embroiled in a barrage of criticisms over the past several years, the tech billionaire and CEO, with his wife Priscilla Chan, continue to use their money and influence to help less-privileged communities.
Philanthropy is common in the business landscape. And studies show that it is becoming not just an act of charity, but also a way for companies to boost their image and boost revenue.
Research has shown that money spent on corporate philanthropy goes beyond the altruistic act of doing good for its own sake; it also brings about concrete positive effects on the bottom line. There are several reasons why companies donate millions to causes, and while some might say they do so just because it’s nice to be altruistic, statistics have proven otherwise. Philanthropic earnings can have a direct impact on revenue generation.
Here’s why.
It Creates a Positive Image of the Company
Philanthropic contributions demonstrate that a company is involved in its community and connected to local causes. It shows that it cares about its customers, employees, the environment, and the world at large. And this is something that can positively affect sales because people know they’re doing business with a company that has good intentions and works for the betterment of all.
It Helps Staff Retention
Engaged employees are critical to business success. They’re also less inclined to leave if their employer engages in socially responsible behavior, such as volunteering or donating money or time to charitable organizations.
People want to work for companies that are doing good. If an employer doesn’t offer these benefits, it can be difficult to compete with companies that do, so people are more inclined to work for a company that shows it cares about issues beyond its bottom line.
Money spent towards philanthropy often comes back tenfold when you look at how many times it helps retain talent by making your workers feel valued and appreciated.
It Encourages Employee Volunteers
It’s no secret that people want to work for companies they feel good about. When a company contributes to the well-being of its own community, it is also encouraging employees to volunteer their time as well. Having employees make personal sacrifices is a great way for businesses to show how happy the company is with the work ethic and values of its staff.
When you consider all these factors together, it’s easy to see why there has been a growing trend in companies getting involved in charitable causes. It benefits both parties: Not only does it help improve communities where business happens, but it also helps boost revenue and makes your business appealing to potential customers who care about supporting socially responsible brands!
It’s a Chance to Market Products and Services
A lot of companies choose to tie their philanthropic efforts to the core mission and values of their brand. This way, it’s easier for customers who see these messages to recall and recommend these products and services.
For example, there’s a popular foundation by Apple that does philanthropic work in developing countries. The same way this foundation works with iOS devices to bring about technological advancement in the form of iPads and iPhones, Apple chooses to get involved with projects that help address challenges related to education and healthcare. Not only does this give them an opportunity to promote their products and services by association, but it also helps them get closer to customers who care about giving back.
A dentist clinic new in town can create a word-of-mouth campaign by generously providing free dental services such as dental implants and tooth extractions to the impoverished population. This way, they can promote themselves as a socially responsible brand that cares about people.
By highlighting the foundation of their business, they can help inspire customers to follow suit
In short, there are several reasons why businesses choose to do good for the world around them-whether through volunteerism or through direct contributions. And while yes, these efforts might be costly at first, they have been shown by studies to have a positive impact on revenue generation because it not just benefits the company or community, but it also helps with staff retention and inspires employees to participate as well.
If more and more companies make this part of their business plan, the world will be a better place.