Daniel Yomtobian Explains Why Philanthropy Can Give Your Business a Competitive Advantage

The Advantages of Corporate Philanthropy

Following are the top advantages of corporate philanthropy, emphasizing how corporate and social responsibility can help your company solidify its position in the market and the community.

Enhancing Branding

Simply put, attaching your company’s name to a charitable endeavor gives your company a better public reputation. Associating your brand with giving back to the community will strengthen the brand and drive more business.

Improving Employee Morale

Daniel Yomtobian from Los Angeles, California, on Employee Morale

Encouraging Customer Loyalty

When customers know that your company is involved in philanthropy, they will be more loyal to you. They will choose your company consistently over your competitors because they will feel that they are doing good for the community by supporting your business. For example, local restaurants that gave away free food during the worst months of the COVID-19 pandemic engaged their customers and caused them to become loyal fans of the businesses.

Better Relations with Government

Charity can make a company’s relationships with state and local governments easier. If your company is viewed as a positive contributor to the community as a whole, you will likely receive some form of preferential treatment from the local government. This is especially true if your company sponsors local events and organizations like children’s sports teams. Donating money to parks and recreational areas is another good way to make your image more positive in the local governments’ eyes.

Daniel Yomtobian from Los Angeles, California, on Social Responsibility

Social Responsibility

Many companies are becoming more socially responsible. Companies’ mission statements and charters are now including provisions for social responsibility. One of the best ways to build social responsibility is to give back to the community in monetary form. Supporting projects in developing countries and underserved areas of the United States is something that even a small company can manage. Large companies have proven that giving to organizations that provide food, clean water, and medical care to people in disadvantaged areas can increase their social responsibility.

Driving Profits

Taken together, all of these advantages can help a company drive higher profits. Companies that engage in philanthropy tend to do better than those who keep all of their money for themselves. Fortunately, it is possible to get many of these benefits without spending a great deal of cash. Companies that are active in their communities can often give small but frequent donations to their favorite organizations as a way to keep their names in the conversation.

Be Cautious About the Organizations You Support

When choosing an organization to support, it pays to do your research. Not every charity is doing the right thing by helping people in the community. Some charities are in business simply to take money from well-meaning donors and spend it unscrupulously.

Gaining a Competitive Advantage

Through these tactics, a company that wants to increase its philanthropy can find itself making better profits and increasing its ability to compete with other companies in the area. Philanthropy is, in most cases, free of any downside. One of the few potential problems that could arise is discovering that your company has been giving to a charity that is not above-board with how it handles its monetary donations.

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Daniel Yomtobian

Daniel Yomtobian

Daniel Yomtobian from Los Angeles, California, is an innovator and leader in the online advertising industry.