Corporate social responsibility is more than a company’s marketing or managing strategies, it’s getting popular around today because it’s quick and easy to get back millennial employees as well. This exchange is a huge contributor to the Free-market philosophy that has led to prosperity in the society. Big companies and their owners donate huge, still a small portion of their total revenue generated and are rewarded well for their charity work.
Entrepreneurs, and owners these charitable acts without any expectation of direct gain of finance, but there are surely many aspects hidden behind this philanthropy that earns them rewards. Effective leaders like G Scott Paterson and others know the methodologies for treating their team members in the right way. Scott Paterson a Toronto-based media venture capitalist has started his career in the investment industry and considered to be one of the leading technology investment bankers in Canada.
Here in this blog, we will look at 5 ways a company benefits from giving back.
Doing Betterment for the Charity:
Today, almost all the small and big businesses donate some part of their revenue to the charity; giving back helps to make the community stronger, which in turn is good for economic growth. Donations for charity can also facilitate the social changes which are beneficial for the industry in which they operate. Community involvement through charity donations can also improve risk management relating to the companies.
It makes the Company Builds Respect and Reputation:
The relationships between the locals and the company can be strengthened through the philanthropy work of these companies. It will make the company name seems to be charitable and will ultimately clear up all the previous bad reputation or records. Philanthropy by businesses can inject the image of caring for the community and the needy. When the businesses to help other people, those people will in turn want to help the company in returning of the favor. Building such a relationship with the community will make sure that those people will stand with you and support you during the possible threats and risks in the future.
Charitable Givings give you tax Benefits:
Most businesses cleverly deduct the charitable contributions from their revenues to lessen the tax amount. Big corporations make these deductions directly while sole business owners would make them on their personal tax returns rather than from the business sides. The tax deductions aren’t limited to the money, you can also also charitably give properties or equipment like vehicles to the NGO in relation to charitable work.
Philanthropy solidifies the Company Values:
Apart from the corporate missions, companies should also be involved in charitable work to nurture the core values of the companies. These Charitable work will enable the employees to feel good about their companies, while involving the outside community to get into the corporate family and enable them to connect with them emotionally with the company. There should be well planned philanthropy programs that can help the company to solidify its values by giving back to the people who need.
Employees will feel Grateful to their Companies:
Please, want their employers to be good people. Companies that donate to the society are likely to have better emotional connection with the employees. Philanthropy and other charitable work show that the companies also focuses on real life problems and not limited to just the bottom line.
