May 5, 2016
3 Ways Corporate Social Responsibility Improves Business
Companies, even small businesses, can benefit from donating to causes that are related to their own missions or volunteering to help with efforts in their own communities. It's not just a case of the warm and fuzzies, either. In addition to helping for the common good of their communities, companies that give back reap some very real benefits.
1. Increased Market Share: Businesses that are active in their communities play a role in improving the lives of their customers. But did you know there is evidence to support that companies that make community or nonprofit involvement a priority actually thrive financially? A survey conducted by the Council on Foundations found that 65 percent of Americans say they would switch to a brand who gave back, if it was of equal price and quality to their current brand. More than 80 percent said they have positive opinions on companies that give back, based on their community efforts alone.
2. Advertising and Public Relations: Positive public relations stories are better than any advertising money can buy for a company's bottom line. Many organizations publish and distribute annual reports, hang banners thanking donors and volunteers, or even offer naming rights to large donors for some projects. In addition, news stories about community events or neighborhood projects typically mention businesses that have donated time, money, or supplies to the cause. TOMS, a shoe company that donates a pair of shoes for every pair purchased, has built its business on this concept. Its advertising budget is tiny in comparison to the money spent manufacturing and distributing shoes to those in need, but the positive media coverage created from its One-for-One program keeps the company near the forefront of the casual shoe market.
3. Teambuilding and Human Resources: Working together toward a common goal, no matter if it is building a community playground or raising money for a local literacy program, provides a team building experience for staff that cannot be duplicated during a normal work day. Volunteering together on a project can bring a team of co-workers closer together. There are also benefits of giving back for sole proprietors of a small business. Being active in the community is a great way to meet possible employees, as well as to network for future partnerships with other businesses in the area.
No matter how large or small your business is, there are benefits to being involved in the world around you. There are many opportunities available to work with nonprofits or community groups in your neighborhood. United Way can connect you with ways that your business can start giving back today.