The impact of corporate philanthropy is being generally measured by counting the number of individuals who are being helped by any particular program. But experts have claimed that it is the philanthropic activities that even help the companies reduce their business risks and reach out to a new market which was beyond their scope ever. Since they collaborate with a wide variety of people and establish a new market, it even helps them to engage the employees, build a brand value, reduce the cost of operation, and deliver competitive returns back in the market.
The corporate philanthropy is usually defined in contrast to various shared and even blended value approaches to corporate social responsibility, where most of the corporate organizations seek to benefit the society by doing some good. But Marc J Leder , who apart from leading the Sun Capital Partners also engages himself in multiple philanthropic activities, defines corporate philanthropy as a discovery phase in investment against a social issue. Much like research and development, philanthropy even allows companies to make thoughtful investments in sectors where the return profile is typically more than it could even be speculated.
No matter what the motivation of the corporate philanthropies is, the community, as well as the donating organizations, were helped through these program benefits. Whenever the companies offer some grant or any kind of financial support, the local NGOs could provide some help and supplies to the programs which otherwise went non-funded. All these benefits for the recipients of the philanthropic activities helped in strengthening the community as a complete whole. Depending on the nature of specific help that is being offered by the corporations, the efforts always led to a cleaner community and more and more opportunities came up to boost the local economy.
While the companies engaged themselves more and more in emphasizing the public service or voluntary activities, the noticed a boost in the morale and particularly when more and more employees valued the idea of giving back to the community where they belonged. While working for a charity project, the employees of multiple departments get to work with each other and hence know themselves better. This actually is reflected when they are made to work for the same project. In fact, when companies allow their employees to volunteer these charitable acts, it sends them a message about how the company cares about the community and emphasizes on the sense of giving.
As and when the news of a company’s philanthropy spread, the community develops a positive impression on the company. In most of the cases, Marc J Leder has identified how these positive images have actually encouraged the entire community to utilize the services provided by Sun Capital Partners, and hence this comes up with an edge against the competitors in the market. But, it must be kept in mind, that once the positive image is being created, the companies need to maintain it, by engaging themselves in such activities at a regular interval. The entire decision to some extent even depends on the community, since it starts claiming more and more involvement. The greater the involvement, the more prominence companies grow in the market.