Social Philanthropy: The Gift That Keeps On Giving

More and more consumers are basing their buying decisions on corporate social responsibility. In other words, communities support businesses who support their community. Consumers are expecting more from businesses, including real, meaningful social impact through support of nonprofits and causes that affect them and their friends, families, and neighbors.

Does this mean that businesses need to designate a significant chunk of their profits for charitable giving instead of spending it on the always needed marketing?

On the contrary, social philanthropy and marketing go hand in hand. This is called “Cause Marketing”. Businesses align themselves with a social cause that they feel strongly about or one that directly impacts their customers and community. By doing this they shape their brand. Businesses want to be known as good Corporate Citizens. By serving the communities they work in, companies with corporate giving programs build their brand reputation more effectively than those focused only on profit. When you compete solely on price, you’re attracting customers who aren’t loyal because they don’t really understand who you are or the value you provide.

I like salad and I go through a lot of salad dressing. And I always pay a little more to buy Newman’s Own. It doesn’t taste any better to me, it’s not less fattening as far as I know. But the fact that 100% of the profits go to charity moves me to buy it. When all other factors are about the same, most consumers will go with the brand that serves a good cause.

It’s getting tougher every day to maintain the lowest price in just about any industry. Being a good neighbor and investing in the causes that your fellow citizens invest in will foster a sense of loyalty that’s far stronger than that brought on by a fire sale or a seasonal discount.
Should your giving be kept quiet? Isn’t philanthropy something that you should do privately, without attracting attention?

Ummmm - NO.

Once you’ve started a strategic giving strategy, be sure to promote your activities on your company website, blog, newsletter, and other internal and external marketing vehicles. The notion that philanthropy and marketing are mutually exclusive doesn’t make sense. Businesses should EXPECT a return on their social investments. We all have to hold each other accountable when it comes to supporting our community. If a business doesn’t see a return, they’re less likely to continue giving. If it’s a nonprofit that is receiving, then they need to be as invested in making the relationship successful as the business is. This means sharing in the marketing duties on social media, co-branded events, and more. These partnerships work best when they’re viewed as just that - a partnership. This means joint press releases, co-branded video and other marketing materials, and most importantly, a shared commitment to success.