The times have changed and now companies not only need to sell products and services but also give out a token of goodwill to communities. Customers and investors both want to deal with purpose-driven businesses, that come forward to give back to communities. Doing charitable work and donating money not only satisfies the moral prospect of the company but also helps to create a positive impact and benefits the business.
According to Cone Communications Millenial CSR Study, “More than 9 out of 10 millennials would switch to a brand that supports a cause (91%, compared to the 85% U.S. average), and two-thirds use social media to engage with CSR efforts (66%, compared to 53% U.S. average). Corporate Social Responsibility (CSR) is now a key factor for consumers when deciding where to shop.”
Why Businesses Should Give Back to Communities?
Corporations have to adhere to Corporate Social Responsibility which holds them responsible for the social and environmental impact of their activities. This allows us to keep an eye on the overall impact of the business on the surrounding communities. Businesses that track the impact of their product and services as well as do charity or give back to communities tend to have more recognition and financial benefit.
Community impact is more than just corporate social responsibility; it’s about businesses actively supporting local communities. This approach understands that a business’s success is tied to the well-being of its community. When communities do well, businesses grow and strengthen their reputation, and as businesses succeed, they can give back even more, creating a positive cycle for all.
Benefits of Giving Back to the Community
Doing charity not only helps communities but also benefits businesses in various ways. We have mentioned below some of the impacts that benefit companies.
1. Create New and Maintain Existing Networks
Regularly helping others will attract like-minded people in the business world you might not have met otherwise. Building connections with those who support similar causes will not only strengthen your charitable efforts but also give your company access to new professional contacts. Philanthropy connects your business to a bigger purpose and creates more networking opportunities for your team.
2. Boosts Moral of Employees
Getting employees involved in community activities is a great way to strengthen their relationships and build a stronger team. When everyone comes together for a shared cause, it boosts their pride in the company and creates a stronger bond between them.
3. Medium of Publicity
The era of “all publicity is good publicity” is gone long ago. Now, the bad publicity negatively affects businesses and their growth. Volunteering the charity and doing philanthropic work is one of the easiest ways to get media coverage and to appear in the newspapers and TV of many potential customers. Additionally, social media loves to see businesses doing work at the ground level allowing you to create a brand image.
5 Companies Making a Difference in Communities
Several researchers have found that Gen Z is one of the most socially conscious generations. They support purpose-driven businesses and want companies to work for the ground-level difficulties of people. According to a survey conducted by DoSomething Strategic, 76% of Gen Z accepted that they would like to buy or have bought products from companies that have done impactful social work.
There is a lot for companies to consider if they are still not helping communities and engaging in impactful social work. We have mentioned below the list of 5 companies that are making a difference by giving back to the community in different ways.
1. Adidas
Adidas, known for its iconic ‘three stripes’ athletic wear, focuses on three key areas of corporate responsibility: community involvement, employee engagement, and corporate giving. One example is the BOKS program by Reebok, an Adidas company, which brings fitness to children aged 5 to 12. Independent evaluations showed that BOKS participants improved their memory, and executive function, and even shaved 16 seconds off their 400-meter run times.
Adidas also runs initiatives like the Pakison Women Empowerment Program, which helps women gain new skills and find job opportunities, and the SOS Children’s Village, a global organization supporting children without families. These programs show how Adidas makes a positive social impact beyond selling activewear.
2. Accenture
US Multinational company which is one of the biggest names in the consulting industry gives back by providing corporate citizenship, employee programs, and the Skill to Success program which prepares people for employment opportunities.
Arian Ball, corporate citizen strategy and programs manager said, “Collaboration is key to our success in realizing our skilling goals and we have partnered with a range of partners, including the Department of Social Protection, Fastrack to IT, and Inner City Enterprise, to help people build the market-relevant skills to find meaningful employment.”
3. Disney
The Entertainment Company, Walt Disney believes in the power of education and provides sponsorships to its workforce for the most comprehensive employer education program. Launched in 2018, Disney’s Aspire program covers 100% of tuition costs and offers support services to help employees with their studies, such as on-site “study hall” spaces and personal career coaching.
The initiative was created to give cast members better access to education, and Disney has committed $150 million to support high school equivalency, English-language learning, vocational training, college, and master’s degrees.
4. Google
Google has pledged to donate $1 billion to nonprofits over five years and provide 1 million hours of employee volunteer work. To achieve this goal, they offer paid time off for volunteering, especially in roles where employees can use their tech skills for good causes. Google also leads in environmental and ethical efforts, such as committing to source conflict-free minerals in 2012 and achieving 100% renewable energy in 2017 as the largest corporate buyer of renewable power.
5. IKEA
IKEA has been working for the betterment of children’s lives through various social initiatives. In the 1990s, IKEA started giving back to the community by fighting against child labor practices and continues to work for a better lifestyle for children in need. IKEA has donated approx $200 million to UNICEF, to provide better facilities to children around the world since 2001.
