In an increasingly competitive global environment, businesses are challenged with demands for profitability and responsibility. To create value for all stakeholders, corporate leaders meet these demands with integrated strategic philanthropic programs. More and more companies encourage and embrace greater collaboration and cooperation between corporations and communities.
I. The competitive advantage of corporate philanthropy
In this first part, we will demonstrate that usually businesses that choose to employ corporate giving attitude benefit in many different ways from their actions. * First, these businesses could increase their reputation amongst the general public, and also begin to attract new consumers to their business as well. * Secondly, businesses that choose to help out their communities could increase their employee retention rates significantly as well. Happy employees will increase their productivity levels. * Thirdly, when companies opt to engage in this giving activity their shareholders begin to build a level of confidence in the business.
In addition to customers’ behavior vis-à-vis different philanthropy programs or CSR in general, it was also been proved that philanthropy inside a company increases the employees’ motivation and thus their commitment and productivity
A. Corporate philanthropy boosts employee morale
One of the most important components of corporate philanthropy is to provide avenues/means for employees to be personally involved in a company’s commitment to social responsibility. It is widely understood that supporting local causes is a good way for a business to develop a positive image and reinforce its relationships with customers. In the process, it can also boost morale among employees. * According to experts employees who have a favorable impression of their company's philanthropic program are four times more likely to be truly loyal employees than those who do not,...