Philanthropy is one of the best ways of giving back to the community. In 2021, charitable giving reached an all-time high of USD326.87 billion. The majority of these donations went to religion (27%), support for education (14%), and human services (13%). Grantmaking foundations and public societies received 13% and 11%, respectively. As philanthropy intensifies, people focused on business success always ask, “How do you make more from this noble action?”
While the goal is to have a positive impact on society, it is also possible to use the actions to stand out from society. Here is a demonstration of how to work with society to get more from philanthropy for your company.
Consider Areas that are in Line with Your Industry
As you work with communities in your area, they can help to enrich your value chain. A company that deals with food processing might want to support farmers or communities that originate the raw materials. Therefore, you are assured of getting a steady supply of raw materials and strengthening the link with such communities.
To make the work of the supported community sustainable, consider installing structures for regular monitoring and action.
You can even empower the community to develop an emergency system to help address similar threats in the future.
Report the Philanthropic as Part of SCR or ESG
One of the best ways of getting more from your corporate activities is to include it in the comprehensive corporate social responsibility (CSR) or environmental, social and governance (ESG) plans. These plans are used by local authorities and other stakeholders to assess a company’s commitment to responsible operations. ESG and CSR require working with the selected communities to not only understand their challenges but create or be part of the solution.
When you finally prepare an ESG or CSR report, investors or other stakeholders will want data that is accurate and verifiable.
Therefore, you need to maintain some links to the community, perhaps through local leaders, for easy verification.
Build a Community around Your Activities
When your company does something good for society, it is advisable to build a community around the service. This helps to create a permanent presence of the company because the community will always remember and talk about it.
Indeed, these community members become part of the company’s network of referrals, which can result in more sales and profits.
Your philanthropic work can act as a stepping stone and create a lasting impression for your company. According to Adrian Cheng, the CEO of New World Development, philanthropy can help to create great social impacts to reduce suffering in society.
When you work with society, he adds that people can help your company to grow even faster because more stakeholders will want to be associated with it. Remember that no matter the size or industry, there is always something that you can do to give back to society.