Research, define, and discuss what strategic philanthropy is and why it is beneficial to organizations, as well as give one example.
Strategic philanthropy in an Organization:
Strategic philanthropy refers to the combination of unique marketing goals of a company with the desire to have improved well-being of mankind. Strategic philanthropy is also called two different names; cause-related marketing or community partnering. In general, strategic philanthropy is a positioning whose main aim is to connect the company with a non-profit establishments or cause. Through this strategy the company is able to do some good for the company at the same time receiving parallel benefits (Ferrell et al, 2009). The discussion below looks at the general view of strategic philanthropy, how to start a strategic philanthropy and the benefits an organization gets from practicing this strategy.
In the business world, many organizations have considered this strategy and some of the basic philanthropy they are involved in include; donating gifts to churches, buying a school yearbook, sponsoring local sports team and allowing students to set up a car wash in the parking lot to generate charity funds. It becomes a challenge for a company to say yes to all donation requests but with a strategic philanthropy it because easy to say yes in way or another to those wanting donations from the company.
The core value of a business is to produce and distribute excellent products and services to all who are in need in a way that will create profit and abundance every person involved in the business. Therefore, a company that adopts strategic philanthropy succeeds in its business. Through this strategies business are able to present the value of important business activities like innovation, dedication, risk-taking, team work and responsiveness to customers (Ferrell & John, 2009). All this activities are important in the business functions of an organization because they determine its success.
Before looking at the benefits of strategic philanthropy, it is important for one to know some of the basic philanthropy strategies they can use in their organization. For starters, one needs to think small by finding out organizations with the company’s community where small donations will create a big impact. When a company is involved in such activity it will generates interest from a community through a lesser cause and the company will be able to see the difference that will come out with this way of action.
Secondly, when an organization is adopting this strategy it is important to get involved by using what they know. In other words the contributions made by the organization should be an extension of what the business is all about by thinking of areas of expertise and leveraging the products and services of the company. For example, the organization can provide personnel’s services to work with local job training meant for the poor. The activity may not sound heroic but since it is what the community needs then it will be of great help for the community.
Other ways to start a strategic philanthropy is by leading by example to make sure customers know that the company does not exist only to make profit but to also take part in charitable activities, create partnership with interest organization in the charitable activities and spread the word about the charitable activities of the organization through advertisement (Anheier,2007) .
Strategic philanthropy has a number of benefits that makes a company or business distinguish itself from its competitors. For instance small businesses or companies that have limited resources the strategy is a solution for them because it provides a way for product development through advertisement and employee-retention. Companies have aligned their vision with the charitable giving thus putting in maximum use of the philanthropy efforts.
The second benefit of strategic philanthropy is that it enhances the reputation with the company’s customers. The strategy is distinguishing self service not by selling the company’s product but instead providing services of good intentions (Ferrell et al., 2009).The strategy is all about showing the customers how much the company cares. Research has shown that, in recent years customers like to be associated with companies that are involved in a good cause for the community and if all the companies are at the same level then the customers prefer to buy from companies that are involved in charitable activities.
Another benefit is that strategic philanthropy helps and organization refines its value and purpose of the business. When the purpose of the business is refined then the organization is able to distinguish itself from its competitors. Additionally, the organization is also able to contribute to the bottom line of the company by improving every virtual point of the business, staff and the overall system. All this will ensure that all the business of the company is a success.
An example of strategic philanthropy is when a company partners with a community service group to distribute coupons on behalf of the organization and when their supporters buy at the company the group gets a certain percentage of the sales (Ferrell et al., 2009). Through this the company is able to meet its marketing goal at the same time the company is able to do some good to the community.
In conclusion, strategic philanthropy is a core element for the success of a business. The strategy is a way of involving the community with the company for the benefits of both parties. The benefits that an organization gets from strategic philanthropy are great and any company that is involved in has succeeded in its business venture.
Anheier, H., Simmons, A., Winder, David (2007). Innovation in strategic philanthropy: local and global perspectives. New York: Springer.
C. Ferrell, John Fraedrich, Ferrell (2009). Business ethics 2009 update: Ethical decision making and cases. New York: Cengage Learning.