When business leaders give back to the community, they can effect positive change. Business leaders who give back are more satisfied with their work, and they have the privilege of knowing that they help to further important community initiatives. Rusty Tweed, an entrepreneur and philanthropist, explains why giving back is good for a company’s bottom line.
When a company gives back to the community, they receive well-deserved goodwill from its residents. Socially conscious customers are more likely to patronize these companies, sharing their ideals with the stated aims of the company. An increase in customers leads directly to an increase in profit. For example, when a restaurant sponsors a children’s baseball team, they win the loyalty of the families on the team. The community learns to think positively about the company, bringing more profitability and free publicity.
A 2013 study found that over 80 percent of consumers think about a company’s social responsibility when they are deciding where to shop. This presents a huge advantage for socially responsible companies.
Employees who work for socially conscious companies are more likely to be satisfied with their jobs. When companies give employees the opportunity to be involved with fundraising or support activities on company time, they have the satisfaction that they are doing good work in the community. A study by Hewitt & Associates discovered that companies who spend more time pursuing social and environmental issues have greater worker engagement and satisfaction.
This is especially important to millennial employees. According to the Pew Research Center, 21 percent of millennials place a high level of importance on supporting the community. While other demographics also enjoy giving back to the community, millennials prioritize community giving over a higher salary for themselves.
Employee turnover carries a tremendous cost for any company when training is considered, so it pays to have programs at work which keep people happy and satisfied.
Build Better Relationships with Customers
If you can’t give the lowest prices for a product or service, you need to set yourself apart in some other way to compete with other companies in your area. Socially conscious activities and charitable giving will make your bonds with your customers stronger and build a sense of loyalty.
Business loyalty is a two-way street, requiring that both businesses and customers have trust and respect for each other. Community giving is a great way for a business to build that sense of respect with its customers.
When companies give back, they are able to take charitable deductions on their corporate income tax. This can make a big difference for a company’s bottom line. Tax advantages are also available to companies that pursue environmental friendliness in their construction methods and energy choices. Rusty Tweed combined these unique benefits by including solar energy in the construction of his Kukui Solar Project.
When You Can’t Give Money, Give Time
When businesses are on shaky footing financially, it may seem like they cannot help the community. In hard times, a business can devote time to a charity rather than cash. For example, a business may allow a scout troop to sell cookies or popcorn at their location with no charge. Company executives can spend time on community initiatives like sports, recreation, healthcare, and children’s issues. This corporate goodwill can help businesses get back on their feet by increasing sales.
Give All Year Round
Many companies give back around the holidays, instituting food or toy drives, but giving throughout the year sets companies apart from the competition. The need for charitable giving does not go away when the holidays are over. When your company gives back to needy organizations throughout the year, you will be able to build important customer loyalty and build your business’s reputation in the public eye. Good word of mouth often translates directly to better sales.
Giving Benefits Everyone
Rusty Tweed reminds businesses that giving back is a risk-free endeavor which can increase a company’s standing in the community. It can also help companies build better sales numbers through an increase in community goodwill. While giving back may take time and money, it is worth the investment.