If there is one thing that the business world agrees on, giving back to the community has a direct impact on your bottom line. Let’s talk about how exactly this works. When people are looking for jobs, they often weigh their options by considering all of the criteria important to them. They consider things like salary, benefits, flexibility of schedule- but they also look at companies’ records in nurturing work-life balance and the overall reputation of an organization. Damon Becknel, an experienced entrepreneur and land developer, understands that this means that if you give back to your community, you’re more likely to attract top talent, creating positive momentum for your company.
The same goes for customers or clients who purchase items or services from your business. By utilizing community resources that give back to the less fortunate, individuals who might not normally afford your business’ services might be more eager to buy from you. For example, if one is paid for for every ten haircut bought at your salon by a company like Locks of Love, which makes wigs for children with cancer – why wouldn’t somebody want to get their haircut there?
Here are some additional ways in which giving back can make good financial sense:
Depending on the amount of time, energy, and money you invest in these events, they can help to positively shape your company’s image by increasing awareness about who you are and what you stand for. This might increase sales or encourage people to refer your business to others. This is particularly helpful if one of the reasons why someone didn’t choose to do business with you was because they had no idea that your organization existed!
Some organizations (like Goodwill ) provide grants for companies that give back to their communities by hiring individuals who have experienced barriers due to poverty, mental illness, addiction, incarceration, homelessness,, or disability. This type of giving can attract top talent to your company.
People are becoming increasingly aware of their impacts on our environment, and businesses that take steps to reduce their carbon footprint or do business in an environmentally friendly way often reap the benefits. For example, if you’re socially conscious coffee company provides reusable mugs – customers will be more likely to choose your product over others due to positive branding.
According to a recent study by the National Business Group on Health and AARP, employees who work for socially conscious employers are:
- less likely to take sick leave;
- more likely to work extremely hard; and,
- 34% more likely to feel positive about their company.
By involving your employees in giving back, you’re encouraging them to be active members of their communities – which is beneficial for everybody involved!
The business world agrees that giving back to the community directly impacts your bottom line. We’ve already discussed how this works for employees, customers, and clients – but it also makes sense for you as an entrepreneur. Let’s talk about what does good financial sense means for you. As we all know, startups often struggle financially due to a lack of resources or capital (especially in today’s economy). If you want to attract investors looking at social responsibility when they invest in companies, then providing opportunities where entrepreneurs can give back is critical. These investments will help individuals get out of poverty and turn into profitable ventures down the road!
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