Corporate values have changed in the past decades: no longer are big businesses caught in the eighties mentality of ‘What’s yours is mine’. Instead, we are seeing a positive shift to corporate giving and business to community partnerships.

This change has arisen for many reasons. Not only has there been an increase in community need, but businesses across all sectors are beginning to see that in order to build and maintain long term market presence, corporate philanthropy must be a strategic part of their management plan.

Genuine business-community partnership requires commitment from all levels of the business from company directors to line workers. True corporate philanthropy is based on establishing long lasting relationships with the organisations stakeholders to create a win–win situation.

Why Corporate Philanthropy is worthwhile to business and the community?

For a business to have a long term focus, whether they are a multinational or a local business, they must recognise their responsibility as corporate citizens.

Benefits

Simple measures such as allowing staff to volunteer part of their work time, supplying product or services to various groups and/or being involved directly in community events, all assist in raising the profile of businesses and making a real contribution to the lives of people in the community.

Corporate philanthropy contributes to both the community and businesses in many different ways.

• Community goodwill towards the organisation
• Specific projects can be funded
• Add to the overall well-being of the community
• Builds long term company and brand loyalty.

• Assist in building positive public perception

• Being socially responsible makes a company more attractive to employees, which in turn increases employee productivity
• Improved reputation can raise the share price
• A closer link to the community can aid in producing more relevant product
• Staff feel greater pride in the company they work for and become more loyal

• Customers will buy the company behind the brand, rather than the brand itself.

"A company must stand for more than just making a profit. There are two great benefits for doing that: the best people will want to work for you and the consumers will want to support you".

Corporate Philanthropy versus Cause Marketing

Cause marketing is seen as aligning brands with causes that consumers feel strongly about. Philanthropy is about positioning the entire company positively in the minds of its constituents for the greater good of the community.

Although the ideals of cause marketing and corporate philanthropy have many similarities, they both have clearly defined strategic purposes. Both methods complement one another, but philanthropy runs deeper to the companies’ purpose and core values. Corporate philanthropy is more about culture, relationships and partnerships, rather than a marketing tool.

How to initiate Corporate Philanthropy

The following points provide an outline of engaging in effective philanthropy:

• Develop a relationship with an organisation that has a similar outlook to the ethos of the business
• Define what you are capable of giving and ensure the resources are available
• Ask the organisation to suggest specific programs or areas that need special attention.

This can focus the level of giving and provide the workplace with a goal

• Inform and involve staff at all levels. Ensure that the infrastructure is in place, ie. set up a fundraising group or committee to run the activities
• Look beyond giving money. Other areas could include product, volunteer time, staff involvement, community events, sponsorship, payroll deductions, etc.
• Communicate to people what you are doing. More people will benefit and you receive the recognition you deserve.

Corporate Philanthropy as a communication tool

Many people see philanthropy merely as a marketing tool. We see it as a communication tool as well. Doing good things and informing people about it is a worthwhile and legitimate business exercise. From a public relations point of view there are many activities that can assist in communicating the benefits of corporate philanthropy to ensure that its primary purpose is well supported:

• Using internal newsletters to inform employees and rally support to the ‘cause’

• Positive communications, by way of media representation, can be conveyed to the community to announce the gift and its meaning
• Community events and involvement to increase community presence, e.g. family days and event sponsorship, etc.
• Involving other companies in the community to combine resources and provide a greater contribution.

And finally . . .

Building a community responsible business should not be seen as an extraordinary activity in good economic times. It must be viewed as an integral part and underlying basis for all business decisions. Businesses that engage in Corporate Philanthropy will find deeper community acceptance, which will ultimately lead to greater business success.