How corporate philanthropy can help communities to recover and rejuvenate business post-COVID
When your business has taken a hit, charitable giving may be the last thing on your mind.
The coronavirus pandemic has had a detrimental impact on communities and businesses alike. The knock-on effect of business closures, lack of sales and redundancies has left masses of people unemployed, vulnerable, and disadvantaged. So more than ever before, it’s up to businesses to boost the economy and help communities recover.
But corporate philanthropy can be a good way for businesses to not only support the communities where they are based, but foster employee engagement, build brand reputation and generate business value – all vital elements for businesses to emerge from the coronavirus successfully.
Rosemary Macdonald, CEO of UK Community Foundations – a national network of 46 community foundations – offers her expertise on ways corporate philanthropy can help communities to recover from the impact of Covid-19, as well as rejuvenate business.
What is corporate philanthropy?
“Corporate philanthropy is when a corporation or business makes a charitable donation (through either funds or resources) to a non-profit organisation – benefiting not only the community but the company and its employees as well.
“There are numerous benefits of corporate philanthropy including increasing visibility of corporate social responsibility (CSR), improving brand awareness, reputation, employee engagement and productivity. All with the overarching benefit of helping those who need it most in the community.
“These benefits can also be increased further by adopting an employee-centric corporate philanthropy programme, giving employees the opportunity to have a say on what causes the money and resources are going to. When executed successfully this can assist in employee retention, productivity and an engaged workforce – a recipe for a positive working environment.
“In summary, the impact of donations and volunteers through corporate philanthropy can have a substantial impact on those on the receiving end, especially during these challenging times.”
How can corporate philanthropy help communities to recover from the impact of Covid-19?
“The coronavirus pandemic has seen businesses step up to support local communities, particularly those who are most vulnerable as a result of the pandemic. Corporate philanthropy can help get these communities, and individuals back on their feet.
“Working with organisations such as UK Community Foundations (UKCF), businesses can gain access to groups who want to improve their communities. For example, in response to COVID-19, Barclays established The Barclays Foundation to provide a £100 million Community Aid Package for charities helping vulnerable people impacted by the pandemic.
“As a result, £1million will be distributed through the community foundation network, to help alleviate the associated social and economic hardship caused by the crisis.”
How can corporate philanthropy help to rejuvenate businesses?
“As with successful CSR strategies, participating in corporate philanthropy can improve employee engagement, brand identity and value, as well as create a positive working environment and encourage strong relationships with those in the community.
“These qualities all contribute to a successful business by giving it the right opportunities to grow and consequently assist in its recovery following the pandemic, looking towards a promising future.
“Nationwide Building Society’s Community Grants Programme gave Nationwide members a role in decision making on charities to fund. This meant the programme not only helped the local communities a tremendous amount, but also enabled the business to strengthen its relationship with its members and consequently its company culture and values – both of which assist to a successful business.
“This is one example of an employee centric corporate philanthropy programme being executed successfully whereby employees at Nationwide Building Society had the opportunity to choose their own causes of which they wanted to help. This demonstrates the value of putting employees in the driving seat.”
“Ultimately, it’s clear that what businesses can gain from participating in corporate philanthropy assists their business to grow further.
“The pandemic has shone a light on the high level of need for support within the charity sector and also the importance of businesses playing their part. Small, community-based charities help philanthropists to fulfil their missions quicker as they are on the ground, doing life-changing work across the country. The local expertise of our national network of community foundations gives us the ability to facilitate and distribute these funds to where they can create the highest impact – benefiting both parties.”
