When looking online for the companies that are giving a lot to their communities, I stumbled upon the “American Companies that Give Back the Most” article in Forbes. I wasn’t surprised to see among the list of top 10 companies, big names like Wal-Mart, Exxon, GE, Target and Bank of America. Seeing such successful, fortune 100 companies amongst the list made me wonder whether their altruism is a result of their success or whether some of their altruism has actually had an impact on the amount of success they have seen. In addition to the benefits mentioned in the “Creating shared Value” article, I wanted to look into more reasons for why giving back has such a prominent impact on companies.
In “Do Good Do Well-The Four Business Benefits of Strategic Giving,” I was able to find some additional explanations for the correlation between service and success. The article explains that no matter how small or large a company, they can still see the following benefits through committing to service:
-Giving makes a difference in how you’re viewed: 92% of Americans have a more positive image of a company that supports a cause they care about.
-Giving can increase your sales: Over 75% of people consider a company’s commitment to social issues when deciding what to buy or where to shop
-Employees want to work for companies that give: It helps build morale and pride in the company amongst the workforce.
-Giving attracts money to grow: 26% of investors say that a company’s social responsibility was “extremely important” in making investment decisions.
If all of these benefits have been proven to help corporations in their business…why aren’t more companies giving back? It seems that the key is that companies should be more forward thinking, and plan out the ways in which giving back will be able to help them in tangible ways. As a start-up, most companies are caught up in staying afloat. As their company progresses, its not hard to see how giving back can be overlooked. As part of business strategy, at the start of a company, it should be a strategic focus to include some level of “shared value” service within the company.