Capital Region Cares
Philanthropy Improves
Employee Morale, Bottom Line
C
orporate giving increased by 5.4 percent in 2018, to $20.05 billion, according to a 2019
report by Giving USA. There are many reasons for that generosity: a general sense of
community service and a desire to address a specific need or to boost the company’s
public image, to start with. And, contrary to conventional wisdom, a survey by the U.S. Trust
shows that saving money through tax laws is not a prime motivation for giving.
But business has found financial benefits and other intangible value from philanthropic
programs by reflecting the culture of their employees. In this activist era, many employ-
ees are looking for more than a paycheck. They want their work to be meaningful, and that
culture extends beyond the job. An increasing number of employees expect the companies
they work for to address community needs that are important to them, whether it’s climate
change, homelessness, disaster relief or a local food pantry.
A 2017 survey of more than 1,500 employees representing many industries and age
groups by the nonprofit research group America’s Charities found 71 percent said it was
imperative that their company’s culture include supporting community charities. Also, 76
percent said it was important that they get to choose the charities they support.
Many executives are on board with that philosophy, as an increasing number of C-suite
leaders are openly recognizing that their companies have a social responsibility to the com-
munities where their workers live and where they do business. The America’s Charities
report said 87 percent of company executives it asked said they were expected to support
causes that were important to their employees.
The activism by employees is all about culture. But philanthropic giving is also an in-
vestment that pays off in measurable ways. According to Project ROI, led by a partnership
between Babson College’s The Lewis Institute for Social Innovation and IO Sustainability,
corporate responsibility practices can increase market value by up to 4-6 percent, reduce
staff turnover by up to 50 percent and increase productivity by up to 13 percent.
In short, employees are happiest when they work for a business that they consider so-
cially responsible and engaged in the community. And that’s a positive return on investment
for philanthropy.
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comstocksmag.com | March 2020
March 2017 | comstocksmag.com
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