How Corporate Philanthropy Impacts the Bottom Line
Mar 28, 2016
The evidence that corporate giving programs improve a company’s performance has been increasingly recognized over the past decade. More employers today than ever understand it is a critical aspect of leading a successful business. However, the scope is too narrow on the benefits of corporate giving programs, often focusing only on the impact they have on employee engagement strategies. Today’s employers deserve to know the whole story so they can decide if their current corporate philanthropy strategies are providing them with results they’re fully capable of getting. It’s only fitting that we begin with employee engagement…
Corporate philanthropy meets engagement. More like makes engagement.
Gallup reports that only 32.5% of U.S. workers are engaged. Discouraging, considering the many benefits of engaged employees — increased job satisfaction, lower turnover rates, higher performance. Corporate philanthropy gives employers a chance to engage employees in a unique and fulfilling way. That’s why over 50% of employers leading the pack are already taking advantage of philanthropy programs that foster employee development through skills-based volunteering. And, 59% of employers are strengthening their teams through company-wide days of service. The evidence positively correlating corporate philanthropy and employee engagement are myriad.
More opportunities for employee development? Check!
Employers with corporate giving programs are in a unique position to develop the talents of their employees. There is a growing trend towards pro bono and skills-based employee volunteering. In fact, according to America’s Charities 2015 Snapshot report, 50% of surveyed companies offer pro bono and skills-based volunteer opportunities and 25% are already tying these opportunities into employees’ professional development plans. Another 30% of surveyed companies are planning to implement these types of employee giving programs in the next two years. Giving employees a new outlet to build on their strengths, and for the greater good of the world no less, verifiably impacts a company’s bottom line through engagement, development and community involvement. It’s perhaps the most resourceful way to utilize the strengths of your workforce in order to achieve organizational success.
Improved financial performance anyone? Yes, Please!
According to the 2015 Giving in Numbers report, a study that examined the corporate philanthropic endeavors of 271 of the world’s largest companies from 2012-2014, found the impact of societal investment was positively correlated with financial performance. “The companies most deeply invested in society were also the ones that saw the most robust financial performance,” the report highlights. Keep reading for an even more intimate breakdown of how corporate philanthropy impacts business goals.
Corporate philanthropy achieves business goals.
Corporate philanthropy has the potential to impact your bottom line in areas that are at the root of organizational success. The 2015 Community Involvement study conducted by Boston College’s Center for Corporate Citizenship found that a growing number of employers are prioritizing community involvement goals that align with their company’s operational strengths. Over 85% of respondents said corporate citizenship enhances their reputation, almost 75% said it improves their ability to recruit employees and nearly 70% said it improves their ability to retain employees. How do you like them apples?
Employees who give may cost you less money.
As part of the employee engagement revolution, more and more employers spend money on wellness programs. Healthier, happier employees tend to be more productive, have better performance and are just plain good for morale. What if your company could give back to society while improving the health of your employees? It can! 61% of employees who volunteer outside of work feel it enhances their wellness. Further, studies have shown employees who volunteer believe it lowers stress levels, improves their health and overall mood and provides them with a greater sense of purpose. That’s wellness all wrapped into one, single activity: employee volunteering. Yes, it can be that easy.
So, what are you waiting for?
If your company has yet to dive into a corporate philanthropy strategy that drives organizational success, put together a plan of action today. Better yet, let CyberGrants help construct your roadmap to philanthropic success. With over 2 million charities in our database, expert vetting consultants, compliance services and an easy-to-use platform that engages your employees in the philanthropy programs you offer, we’re your one-stop-shop to successful corporate philanthropy.