Views
9 months ago

WHY should corporates adopt a purpose led approach to giving?

The Why, What and How of Purpose Led Corporate Giving This is part 1 in a three part series distilling our research and what we’ve heard around three key questions 1. WHY should corporates adopt a purpose led approach to giving? 2. WHAT does best practice, purpose led corporate giving look like? 3. HOW can corporates embed social purpose within their organisations?

WHY?

WHY? THE BENEFITS ARE CLEAR... PURPOSE PROMOTES CUSTOMER LOYALTY AND PROFITABILITY 66% of consumers are willing to pay more for a socially responsible product or service 2 90% of consumers report they would swap to a more ethical brand 3 SHAREHOLDER VALUE Loyal & more profitable customers + engaged employees = greater shareholder value 44% of millennials would leave their current employer within the next two years to gain more meaning and fulfilment 4 PURPOSE PROMOTES RETENTION & CREATES A THRIVING WORKPLACE CULTURE 10X MARKET OUTPERFORMANCE Purpose led companies outperformed the S&P 500 by 10 times between 1996 and 2011 6 $43K is the fully loaded cost of a single employee turnover 5 $2,400 of value is generated by every employee who participates in volunteering through their workplace 5 6

BUILDING A TANGIBLE BUSINESS CASE Components of the business case The first, and potentially most significant barrier for corporates in adopting a purpose led approach to giving is demonstrating a clear business case. Fortunately, the business case for social purpose has been strengthened of late by readily available data on consumer behaviour and employee motivations. We have identified three clear and pervasive trends that support a purpose led approach to deliver more and better corporate giving. This section explains each of these trends and provides the tangible and intangible benefits that will help you build your business case. What makes for a compelling business case? Firstly, consumers expect businesses to behave in a socially responsible way – their spending and loyalty increasingly reflects this. Secondly, employees now want more from their careers – attracting and retaining top talent depends on more than compensation. Corporates must prioritise being an employer of choice. Thirdly, corporates are expected to play a key role in solving society’s most pressing problems – their employees want to be involved in contributing to the solutions. Business case in practice - page 15 7