Reasons Why Corporate Philanthropy Is Important, Part I
As is constantly seen in the media, many companies have been giving back to charitable organizations that are important to them. And this makes sense; it is nice that a company that is doing good by giving back to the world around them. But philanthropy is good for more than just the world around us. According to research conducted by the Harvard Law School Forum, corporate giving has a direct correlation with financial performance.
Some companies are wary of giving back, and if they do, they are concerned about sharing this information. Some may fear that they will set a precedent one year, and then not be able to donate as much the next year due to struggling financially. They also worry that there will be a scandal if they contribute to a company that ends up gaining a negative reputation. But overall, the pros far outweigh the cons in terms of corporate philanthropy. But, there’s a reason that corporate philanthropy is the right way to go.
More Recognition For Your Company
When a company’s employees donate to a charity or volunteer to help those less fortunate, this improves the company’s reputation. In fact, corporate philanthropy often causes a bigger increase in brand recognition than advertising does. While many consumers tune out advertising, consumers often pay close attention to the actions that companies are taking to help their communities. When a brand name is connected to a positive endeavor, this solidifies the brand in the eyes of the consumers while companies simultaneously promote goodwill.
It is more common now than ever before for consumers to carefully research products and services before using them. And some of the most important things consumers take into account are the values of the company. This is where corporate philanthropy can give a company many more consumers. People love to give to a company that gives to the people.