For years, company leaders have been told to “think global, act local”. But why is it important from a corporate standpoint to give back to the community that surrounds your company?
Corporate contributions to charities or community service organizations benefit companies in many ways. Contributions come in many forms. However they choose to contribute, corporations see a return on investment in one way or another. Most companies do not take into account the internal and external benefits of philanthropy. See the image below for a visual representation of the rewards of giving back.
Philanthropy helps to boost employee morale. It also offers an opportunity for team building and collaboration (refer to “3 Reasons to Focus on Employee Morale” for more on why inter-department collaboration aids innovation). This also plays a major role in contributing to a company’s culture. Not to mention, philanthropy offers a great opportunity to enhance a company’s recruiting efforts. It’s been said the millennial generation of employees look for companies who share their values. Thus, organizations that take part in charitable programs are more likely to find talent that is a good fit for their company.
Financial or volunteer contributions help to empower charitable organizations to reach their goals. Corporate support strengthens the community by creating a cleaner environment, boosting the economy, etc. Consider the benefit of creating a grant for an education or research-based organization. The support could stimulate innovation, technological advancement, and learning opportunities that have the potential to change the world.
The internal and external benefits both support a valid case. But at the end of the day, your company will have added value from investing in their community. Most donations and time volunteered are tax deductible. There is also a long-term return on investment from improving the quality of life for your current employees/community members and generations to come. If done right, your brand will elicit a positive image from supporting your community and can provide you the added boost you may need over your competitors.
A company’s sincere interest in helping others goes a long way internally and externally. In 2013, MPAY, its employees, and clients contributed $4,485 to charity:water. This helped to bring clean water to families in developing countries. This spring, MPAY is focusing efforts locally to make a difference in the communities in which we work and play. Each office location has chosen a cause to support and we invite you to join. Click below to find out what we’re doing in your area and how you can get involved.