Corporate social responsibility trends continue to rise and sway high-level decisions for many global companies. Social media and public efforts keep the pressure on industrial powers to do the right thing for the environment. Given the potential negative consequences for not being mindful of philanthropy and environmental concerns, corporate leaders wisely choose to cooperate. There are many other benefits that encourage companies to focus on corporate philanthropy.
Alignment With Employee Concerns
Corporate leaders often choose to donate time and financial resources to a variety of causes. As the executive staff review fundraising appeal letters, they may have a specific set of criteria. Factors that impact philanthropy decisions could be politically motivated or include something that hits closer to home. Employers may conduct polls and surveys to ensure employee participation in their philanthropic endeavors.
Causes That Matter
Healthcare research and other foundations provide opportunities for donors to connect with causes that are personally relevant. Countless organizations offer solutions to problems that impact the community. When companies commit to funding these types of non-profit agencies, they align themselves that are clearly important to their employee population. In turn, employees have a renewed sense of loyalty and appreciation for their employers. These positive reviews reflect well on the company and increase interest in working with and for a particular corporation.
Social and Environmental Concerns
Generally speaking, corporations do not have to be educated about what is good for the environment. Business and industry are typically areas of high responsibility when it comes to environmental waste components. The byproducts of doing business can produce unnecessary and sometimes even excessive waste. Corporations can combine their philanthropic efforts with their concern for the environment. Implementing recycling and waste reduction programs encourage employees also to be mindful of their own responsibility to conserve energy and reduce their carbon footprint.
Shareholder and Competitor Perspectives
Aside from employee satisfaction, corporations have other audiences to consider. Shareholders naturally have a major impact on public corporations. Shareholder opinion can definitely steer company decisions when it comes to social responsibility. Investors today expect companies they support to participate in environmental advancements proactively. Industry competitors also have great influences when it comes to corporate philanthropy. Companies, like individuals, are often more accountable when they are trying to outdo the competition.
About The Author
Janine Getler is a real estate attorney and the Principal of Getler, Gomes & Sutton PC, a real estate and construction law firm in New York. She brings over 25 years of professional experience working in law, and is known as a leader in the industry. Follow Janine Getler on Crunchbase to learn more!