The impact businesses can have on society has become more apparent to consumers, and successful business professionals recognize the need for companies to be active in the community. Many businesses have found that the more involved in the community they are, the better their bottom line. Not only does the company’s reputation improve among customers and clients, there is also an increase in customer loyalty and personal referrals.

Employee Benefits

Word-of-mouth buzz about your company is likely to gain momentum, which makes it easier to attract skilled and highly motivated employees. When people are saying good things about the company, employee morale rises, and workers are grateful for the opportunity to add meaning to the efforts they make in building the business.

Measuring Charitable Success

How do you measure the success of charitable giving? There is no universally accepted accounting system, yet every business professional understands success can be both:

• Tangible – increased sales, higher stock prices, and increased employee retention
• Intangible – more consumer loyalty and improved employee morale

According to a 2009 report by Global Consumer Studies:

• 64% would recommend a brand that supports a good cause.
• 67% would switch brands if a different brand of similar quality supported a good cause.
• 65% of people have more trust in a brand that is ethically and socially responsible.

Overall, a positive relationship exists among the dimensions of charitable giving and a company’s performance.

Branding a Winning Reputation

A good name can be a company’s most valuable and enduring asset. Charitable giving plays an increasing role in corporate reputations and competitiveness, ultimately rivaling brand names among criteria used by customers to select products and services. While companies are figuring out how to do it right, outsiders are measuring reputation on a broad scale.

Ask consumers why they buy The Body Shop’s cosmetics, Tom’s of Maine toothpaste, or Horizon Organic Milk, and a high percentage will undoubtedly mention company values as often as product specifics.

So, does charity and social responsibility sell? Absolutely! Building responsibility into the brand is good business.

The Public Listens and Watches

Increasingly, consumers listen to companies about their roles as corporate citizens. Small but steady streams of messages engage the consumer because of the positive impact they have on the community.