In a world faced with environmental emergencies, growing inequalities and uncertainties, the impetus for generosity has never been so strong. In this momentum, companies play their part fully! Contrary to common belief, while large groups are indeed the driving force of this dynamic, a large number of small companies also engage in philanthropy with the aim of bringing to life their aspirations for impact[1]. Focus on SMEs.
Why make philanthropic commitment concrete?
A quick look at neurosciences sheds light on a fundamental point: being generous provides a feeling of pleasure. And this alone is already a particularly good reason to engage in philanthropy!
Yet, concerning companies, the virtuous circle does not stop there. Beyond being veritable acts of generosity, philanthropic donations are also a valuable strategic tool that combines the desire to have a positive impact with value creation for the company.
The virtuous cycle of philanthropy
→ Enhancing the company’s image
From convictions to actions
Today, there is no denying that the profitability of companies can no longer be dissociated from a form of participation in the common good. A growing number of entrepreneurs are willing to contribute to the general interest and to give meaning to their activity. The first vocation of philanthropy for a company is therefore to translate strong values into a concrete commitment. In short, to act for a better world.
From commitment to visibility
But embracing social responsibility is also becoming a strategic priority for any company that wishes to keep up with the times. A time where the present no longer hampers the future. Engaging into philanthropy is a way of turning these aspirations into actions. It therefore acts as an undeniable intangible asset that contributes to the alignment of the company’s values with that of its various stakeholders, and to improving its reputation and attractiveness.
→ Involving employees
Strengthening the company’s image as an employer
Another important point. Employees, especially Millennials, are yearning for meaning. This has become a core element guiding their choice of employer and job. In this quest for meaning, emotions inevitably play a major role alongside the various indicators traditionally put forward by companies to attract and recruit their employees.
More and more are willing to work for companies that embody the values to which they relate by supporting causes of general interest, particularly in the environmental field. Philanthropy acts thus as a real lever to boost a company’s image, the employees’ pride and their feeling of belonging.
Improving commitment and motivation
We have seen that ‘giving’ is good for the morale. The good news is that what is true at the individual level also applies at the organisational level. It has been demonstrated that employees who work in philanthropic companies tend to be more fulfilled, more motivated and more committed to their employer. The result? You’ve got it, they are also more productive.
Finally, let’s close this virtuous circle! Many countries encourage philanthropy through tax incentives. In Switzerland, companies can deduct up to 20% of their net profit as a voluntary donation to charitable organisations. A parameter to be taken into consideration when making a donation.
Speak about it!
So…giving is good for the morale, good for society and good for the company. And good things must be shared! Whatever the type of philanthropic project (company donation, pro-bono, sponsorship, salary donation, etc.), it is essential for the company to communicate on its approach. Internally, to involve employees and bring them together around a common project. Externally, to promote the cause supported and to herald its commitment.
Convinced? Discover our actions to preserve the environment and animals.
[1] The Admical 2018 barometer on corporate philanthropy in France highlights the growing involvement of VSEs and SMEs in philanthropy as they represented 96% of corporate sponsors. https://admical.org/sites/default/files/uploads/etude_mecenat_dentreprise_en_france_-_2018_vf_.pdf