In the ever growing competitive and complex business world, companies are increasingly looking to find new ways to add social value and make a positive impact.
Strategic philanthropy has emerged as one of the most effective methods for achieving this. But what is strategic philanthropy?
According to The SAGE Encyclopedia of Business Ethics and Society published in 2018, “strategic philanthropy is defined as a method of designing corporate or business giving and other philanthropic endeavors of a firm so that they best fit with a company’s overall mission, goals, values, public relations objectives, and the external environment”.
In other words, it’s all about having an intentional strategy when it comes to giving.
Through strategic philanthropy, businesses can maximize their social benefit while still meeting their core business objectives and maintaining profitability.
Identifying causes that align with the business
This can be achieved through carefully identifying causes that align with their values; researching impactful opportunities that have potential to strengthen brand reputation; leveraging resources available both internally (for example utilizing employee volunteer programs) or externally (such as partnering up with nonprofits); measuring progress through effective tracking of financial donations; targeting communities for better reach; forming alliances with like-minded organizations; hosting engaging events; providing unique skills-based support for organizations in need etc.
Beyond traditional donation models
Strategic philanthropy also encourages companies to look beyond traditional donation models by involving employees in hands-on projects or engaging customers in creating change within their local communities — ultimately creating an organizational culture centered around individual responsibility, collaboration and innovation while also showing commitment towards achieving broader social goals.
In summary
In short, strategic philanthropy offers businesses an opportunity to bridge the gap between profit and purpose – leading to more holistic growth of a company while making a meaningful difference in society at large!
Ultimately, strategic philanthropy is a win-win situation for everybody because it helps in achieving greater social good while also allowing companies to grow their business.