How Giving Back to Charity Boosts Brands: A Look at Business-Driven Philanthropy

Daisy M

1 year ago

The majority of well-known businesses support good causes&period; Their motivation for doing so is up for debate &&num;8211&semi; some may argue it comes from the heart while others may cynically suggest it is a tactic to drive sales&period; Regardless of the reason for giving to charity, nobody can argue with the fact that it is great to see money flowing into good causes whether that is from a large corporation or a small, local business that chooses to support a local charity&period; &NewLine;&nbsp&semi;&NewLine;This article will discuss the advantages of supporting philanthropic causes while highlighting some of the biggest givers in the business world&period; &NewLine;<h2>Factors To Consider Before Working With A Charity</h2>&NewLine;If a business is considering working with a charity to enhance its corporate social responsibility, it’s not as simple as asking the CEO to pick their favourite charity and write out a cheque&period; There are a number of factors to consider&period;&NewLine;&nbsp&semi;&NewLine;Firstly, most businesses that give back work with charities that are relevant to their industry&period; Failure to do so may make the partnership appear inauthentic, which could cause people to question the motive behind the charity work&period; For instance, a cigarette company working with a charity in the <a href="http&colon;//sparklerecovery&period;com/">health</a> space would not feel natural as the business is selling a product that negatively impacts people’s health&period;&NewLine;&nbsp&semi;&NewLine;In addition to this, businesses must consider the extent to which they wish to commit to supporting charitable causes&period; As already mentioned, most businesses work with charities in some capacity but finding organisations that have worked with charities for 5, 10, or 15 years is harder&period; A long-term commitment is harder but reflects much better on the business in terms of PR and authenticity&period; &NewLine;<h2>The Advantages Of Businesses Giving Back To Charity</h2>&NewLine;<h3>Support a Good Cause</h3>&NewLine;One of the most obvious reasons for giving back to a charity is to support a good cause&period; Although businesses are often accused of supporting charities for <a href="https&colon;//medusamagazine&period;com/exploring-digital-marketing-mistakes-you-should-avoid/">marketing</a> purposes, it may be a little harsh to assume this is always the case&period; Many founders use their financial success to support causes that have a personal meaning to them&period; &NewLine;&nbsp&semi;&NewLine;You may have heard about Bill and Melinda Gates famously giving away an enormous amount of money to support the fight against AIDS&semi; this is one of the most documented examples of an entrepreneur supporting a charity&period; However, at the other end of the scale could be a local business supporting a nearby children’s hospice that they have a personal connection with&period;&NewLine;<h3>Public Relations</h3>&NewLine;Although it would be nice to think that every business gives back to charity purely to help a good cause, it’d be naive to assume there isn’t some form of PR play involved at least some of the time&period; It goes without saying that supporting charities and working closely with philanthropic causes reflects well on the business involved&period;&NewLine;&nbsp&semi;&NewLine;First, working with charities creates positive headlines and wins column inches&period; Readers love reading about feel-good stories so journalists are likely to lap up any crossover between business and charity&period; In consequence, the brand should enjoy an enhanced reputation which makes customers more likely to do business with the brand&period; &NewLine;<h3>Reason To Buy</h3>&NewLine;Giving to charity is a great way for brands to enhance their reputation, but it also provides customers with an extra reason to do business with the brand&period; You can think of it as a win-win situation where, as a customer, you receive a new product whilst also feeling good about supporting a business that gives to charitable causes&period; &NewLine;&nbsp&semi;&NewLine;There are many examples of brands that perform an action for every sale such as Woodchuck USA planting a tree for every product sold&period; This can leave the consumer feeling like they are responsible for a tree being planted as well as receiving their shiny new purchase&period; &NewLine;<h2>Examples Of Brands That Give Back To Charity</h2>&NewLine;<h3>TOMS</h3>&NewLine;TOMS shoes are one of the best-known examples of a brand that puts charity at the heart of its objectives&period; TOMS famously implemented a one-for-one model which saw the company give away one pair of shoes for every pair sold&period; &NewLine;&nbsp&semi;&NewLine;TOMS has given away 100,000,000 pairs of shoes to those in need and the brand now gives a third of profits to grassroots good&period;&NewLine;<h3>Lacoste</h3>&NewLine;In 2018, Lacoste launched a collection of limited edition polo shirts that saw the brand ditch its iconic crocodile logo for ten endangered species&period; The ten products were extremely limited in availability with stock levels relating to the remaining population of the chosen species&period;&NewLine;&nbsp&semi;&NewLine;For example, consumers could purchase a vaquita polo shirt of which there were only 30 available to reflect the 30 remaining vaquitas in the world&period; Other animals involved in the collection included the Burmese roofed turtle, the northern sportive lemur and the Javan rhino&period; &NewLine;<h3>Bulgari</h3>&NewLine;2024 marked the 15-year anniversary of Bulgari’s partnership with Save the Children&period; To mark the anniversary, the jewellery company launched a new pendant collection with proceeds going towards the charity’s efforts to protect the world’s most vulnerable children&period;&NewLine;&nbsp&semi;&NewLine;Brands like Bulgari that commit to long-term partnerships are far less likely to be accused of PR plays which should benefit them in terms of reputation and sales&period; &NewLine;<h3>Lush</h3>&NewLine;Lush has long been known for its strong ethics and efforts towards corporate social responsibility&period; As a result, any act of charity from the brand comes across as genuine and authentic&period; &NewLine;&nbsp&semi;&NewLine;At the forefront of Lush’s charitable efforts is their Charity Pot, a hand and body lotion launched in 2007&period; The aim of the product is not only to nourish consumers’ skin but also to raise money for small charities in the areas of animal protection, human rights and the environment&period;&NewLine;&nbsp&semi;&NewLine;To date, Lush’s Charity Pot has raised over £75million across 175 countries perfectly demonstrating how successful a charity-driven product can be&period;&NewLine;<h2>Final Thoughts</h2>&NewLine;Combining business efforts with philanthropic initiatives is a great way to differentiate your brand from competitors&period; It is also a proven tactic to build long-lasting relationships with certain demographics&period; Consumers who are interested in certain charitable causes are far more likely to become repeat customers of brands who help those causes&period;&NewLine;&nbsp&semi;&NewLine;Collaborating with a charity is a great option for startup brands who are trying to penetrate the market&period; Consider the long-term impact of launching a hoodie in collaboration with a good cause compared to the short-term success of heavily discounted products in a <a href="https&colon;//avantgardeparis&period;co&period;uk/collections/hoodies">men’s hoodie sale</a>&period; One initiative appears sales-driven while the other comes across as driven by a desire to do good and support charitable causes&period;&NewLine;