Strategic philanthropy refers to the practice of companies by which they target their relevant charitable activities and in return supports the companies’ business objectives. Strategic philanthropy helps the give back to the community and enhances the companies’ reputation with their customers. Companies and corporation that practice strategic philanthropy have reaped benefits of these practices and they have prevailed in the competitive markets. Such benefits include: Instead of companies throwing cash at any non-governmental organization, strategic philanthropy directs these efforts where maximal impact will be felt. Strategic philanthropy depicts company values to be going beyond profit making and are in line with the greater good of the society.
Strategic philanthropy being integrated across the various company departments and various company outlets translates to more social impact in the community. Departmental integration translates to more internal cohesion of these departments and this in turn results in smooth and proper running of the company. Strategic philanthropy set a company that practices it apart from those companies that don’t practice it or other competitors that are still stuck in the old paradigms. This is because such companies are doing something remarkable that makes a difference to its customers. Strategic philanthropy boosts the productivity of the company. This is because the employees feel that part of something that is larger than just a company. This translates to more employee motivation and this turn translates to being more productive in their jobs.
Strategic philanthropy increases the sales and business prospects of the company. This is because most customers like to know the products and companies they invest in are doing with their money. Epic Media Group, Chief Market Officer found out that by connecting with the employees on a personal level and knowing what is important to them. Leveraging this knowledge to decide on how invest the company’s strategic philanthropy such as monies and volunteer time has gone a long way in sustaining such practices. By selecting several different charities to receive financial or other form of aid, Epic Media Group was able to focus on organisations in which their clients, employees and strategic partners were involved in. This in turn increased the company’s visibility and strengthened the relationships among the clients, employees and strategic partners. Strategic philanthropy of a business does influence my brand loyalty. I will always buy goods from a company that has community interests in their business objectives. I become satisfied knowing that company products I have invested in doing something for the greater good of the community and they are not all about making huge profits.
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BA 301 Week 5 Discussion Strategic Philanthropy.docx