What’s In It For Us?

Seven reasons why charity work is good for business

We all know that being charitable is good for the soul, but there are good reasons why charity is not just for the individual. Research shows us that businesses that commit to charitable works, sponsorship and fundraising reap the rewards as well. Charity may start at home but it thrives in the market place.

Here are just seven quantifiable reasons why charity is not just good for humanity but good for business too…

1. Being a business that is recognised as charitable increases sales

Research shows that customers, particularly consumers, are more likely to buy a product or a service if being sold it by ‘a good guy’ or if, through their buying power, they can contribute to the greater good. Essentially, customers get to benefit, second-hand, from the altruism buzz. Products from which a percentage or proportion of the purchase price is donated to charity sell at a much higher rate during the charitable-giving period that they do in the months either before or after. Buying a bouquet of flowers for a loved one? Why wouldn’t you choose to order from the company who is going to donate 5% of the purchase price to breast cancer research rather than buy from the company who pockets the entirety of the profit? Looking for insurance? Wouldn’t you feel better insuring with the company who sponsors the local children’s hospice? Essentially being the firm that helps others or tries to make a difference in the world differentiates your business from its competitors.

2. Charitable giving helps create in-house positivity, increases group morale and promotes team bonding

Getting employees involved in a team or company-wide charity event or fundraiser boosts the general ‘feel good factor’ within the work place. It bonds the company or team in the pursuit of one goal. There is a very good reason (and it is not just out of the goodness of their hearts) that the global corporate relay running race “Square Mile Relay” is so heavily supported by the international corporate firms who take part. Not only does the race make a big difference to the charities it sponsors, the companies taking part reap the benefits of entering. The event builds camaraderie amongst the firm’s employee teams and the event itself markets itself with the by-line “turning individuals in to teams”. A team that sweats and laughs together works well together. And a team that works well together makes money.

3. Firms that are perceived as charitable attract the top talent

Linked somewhat with the theme of creating in-house positivity through charity work, it is also true that a company with a charitable persona attracts good employees to its doors. The perception is that a company that cares about the world will care for its employees as well (and research does show that this is most likely to be true). A company with an altruistic ethos is especially most likely to attract the best of the new crop of graduate talent (before they become world-weary). Youngsters are more likely to rate a socially-conscious approach to the world as important in their job search. However, whatever age we are, most of us would rather work for one of the ‘good guys’ rather than for a company which fails to give anything back.

4. Fundraising and charity sponsorship is the best kind of marketing

Think of all the famous marathons across the world (wherein at least 90% of entrants run for charity) — they are all linked with a household brand. Think of large scale charity drives such as ‘Children in Need’ and you immediately think of their supermarket partners. You can’t buy that kind of publicity — or rather you can, but instead of lining the pockets of an advertising agency in this scenario your money will be going to a good cause. On a smaller scale, local businesses have much to gain from linking up with a community charity and working together with them to make a difference in the local neighbourhood. The charity receives much needed funds and the business receives recognition from and exposes itself to its local market.

There are some rules however with this one. Charity-business partnerships only work when the charity and brand align. There must be a meeting of values, a logical connection between the business and the charitable cause. Without authenticity the pairing could otherwise be seen as cynical and the good intention could backfire. The public are aware when a company is not genuine in its commitment to the cause. If you are a small business thinking of linking with a cause, pick one you believe in and are passionate about. The business rewards will come but only if charity is the motivating reason for the endeavour.

5. Charity work creates networking opportunities

All good business leaders network, from those heading up large multi-national organisations to those running sole proprietorships. Networking is invaluable in building connections with customers, other business leaders and competitors. No one likes doing it! However, meet at a charity event and the ice is already broken. You and your fellow networker immediately have something to talk about, a way in to a conversation that can lead to all the other areas you may have in common. How much easier to invite all your customers and potential customers to a charity auction you have organised and to ‘work the room’ as its host, than to invite them to a seminar? Furthermore, a common interest in a charity creates an ongoing platform upon which to maintain a connection. Collaborating for charity breaks down formal barriers that otherwise stop businesses from working together.

6. Working alongside a charity can help your business reach new audiences

Through engaging in charity work a business can make itself visible in new ways. In particular charity campaigns and fundraisers often appear highlighted through social media; face book, twitter and Instagram as well as other online platforms promote charity events and campaigns in a way that provides wide-spread exposure. Charity social media coverage reaches an audience that is very often inaccessible in typical forms of business marketing (particularly without a huge marketing budget). Working alongside charities who utilise social media to positive effect can teach a business how to market itself in this new online world. Businesses have much to learn from charity organisations in this respect.

7. Being charitable enhances a company’s reputation and profile

A company that can afford to donate to charity must be doing well, right? That means a lot of other people must have bought services or products from them? The perception created by being a recognised charity player is that the business is solid, reliable, and big. This is particularly effective with ongoing charity partnerships. It creates an impression of substance and enhances the credibility of the business in the market place. Consumers like to feel they are making a safe choice. A business with a company profile that includes charity work is a business that will garner a good reputation. Charity work, charity sponsorship and fundraising all show the public that this is a business that can be trusted. And doesn’t the maxim go that “all good businesses are based on trust”?

Lucy-Ann Dale