Why You Can’t Ignore Corporate Social Philanthropy

It is for this reason that I avoid the term corporate social responsibility and use corporate social philanthropy instead. In recent years, CSR has often been reduced to an afterthought for many businesses. It’s seen as a box-ticking exercise or a marketing tool for good publicity. This approach leads to uncoordinated activities with little to no long-term impact.

The term philanthropy, on the other hand, comes from the Greek phil – loving and anthrōpos – mankind, people, means out of love for people. Philanthropy is often associated with money and donations, but its original meaning is broader. It refers to any act of kindness meant to help others. As a consultant in corporate philanthropy, I believe the days of superficial corporate efforts are numbered. Authenticity in giving is becoming essential.

People want to see genuine intentions, long-term solutions, and commitment to solving social and environmental problems. The businesses choosing to ignore it might end up losing out on new markets and being pushed out of the ones they already participate in. Here’s why:

Millennials are increasingly important

Nowadays, millennials are redefining the workforce, embracing change, seeking challenges, and striving to make a difference.

Millennials are a growing portion of the active population and thus workforce worldwide. However, their values in life and expectations from a workplace are fundamentally different to those of previous generations. Unlike other generations, they are not seeking comfort and stability but are open to change and in search of new challenges and opportunities. They are also characterised by their desire to contribute to the greater good and change the world for the better.

Thus, Millennials tend to be less loyal employees and more demanding customers too. A Deloitte survey found that 70% of Millennials would choose a company based on its commitment to the community. This highlights the importance of corporate social responsibility in attracting talent. Research shows that Millennials often choose products based on a company’s image. They prioritize whether a company is seen as socially responsible. With this being said, appealing to a growing part of the population, both in terms of employees and consumers, will be crucial to any business’s survival in the future.

Philanthropy is becoming a new business model

Social change has become a new hot topic both in societies and in the corporate world. Social entrepreneurship is becoming more popular as an increasing number of people worldwide see making a difference as important. This shift includes various business stakeholders embracing the model. A growing number of start-ups are created with social impact in mind and designed around making a difference in a meaningful and sustainable way.

Investors & Partners care about philanthropy

Just about 15 years ago only a dozen of the Forbes 500 companies issued reports different from the financial ones. Today more than two-thirds of the most prosperous companies in the world publish reports on their social responsibility. In their Harvard Business Review paper “Strategy & Society,” Mark Kramer and Michael Porter state, “What these reports leave out is often as telling as what they include.” This omission is significant. It reveals insights just as much as the included information. This suggests many corporations engage in CSR and report on it just to appear socially responsible, rather than out of genuine concern for society.

As CSR rankings rise in importance, companies are embracing philanthropy as a vital part of their brand, boosting their image and attracting investors.

Regardless of this, however, it is a fact that the popularity of these reports has grown in parallel with the importance of CSR rankings. A company’s image and reputation are crucial to its success. Being socially engaged is becoming a major competitive advantage. Thus, corporate philanthropy is becoming an integral part of the brand and something potential partners and investors increasingly take into consideration.

 “Ignorance is a voluntary misfortune”

said Nicholas Ling, a British bookseller and editor from the 16^th century who published some of the most important Elizabethan works, including some of Shakespeare’s Hamlet. His words couldn’t be more true when it comes to corporate social engagement and philanthropy.

People expect more from businesses today and covering the bare minimum is increasingly insufficient. Businesses must be responsible to the environment and society. Now, communities expect companies to actively address societal problems. This is becoming a must. And those organisations that choose to ignore their role and responsibility in society might be choosing to disappear in the future.

Social responsibility is no longer about writing a cheque or organising volunteers to work for several hours with a social cause. It is about having a genuine desire to make an impact and working closely with a worthy cause.

If you want to integrate social impact into your business model, we’re here to help. Make a difference while growing your business. Contact us today! With years of business coaching experience, I specialize in corporate philanthropy. I can help you integrate meaning and purpose into your business sustainably.