Scott Moorehead: Benefits of corporate giving include attracting, retaining talent

In the ever-evolving landscape of corporate social responsibility, businesses are recognizing the positive impacts of giving back to the community.

Beyond the pursuit of profit, corporate giving has emerged as a powerful catalyst for success in business. After nearly 20 years of developing a purposeful for-profit organization, I have seen firsthand the benefits and the sometimes-surprising effects of transforming your business into one that promotes a culture of good.

As a Culture of Good Inc. company, Round Room makes ongoing investments in the local communities across all 43 states in which we operate. We host quarterly events that benefit teachers, students, animals, our own customers and more, and we give all retail employees the ability to fund local grants to support not-for-profits and causes that are important to them.

Focusing on more than profit allows businesses to actively participate in community development. According to a survey from the Boston College Center for Corporate Citizenship, more than 80% of company respondents report that community involvement contributes to improving a company’s ability to recruit employees and reduce turnover, driving growth for the business. Additionally, nearly two-thirds of companies measure the connection of employee participation in community involvement to the creation of business value.

Local communities are the lifeblood of businesses, providing a supportive environment for growth. By investing in community projects, education and local organizations, businesses contribute to the well-being of the areas they operate in. This not only strengthens the community but also establishes the business as an integral part of the local fabric.

‘Profound impact’ on morale

Corporate giving has a profound impact on internal dynamics, influencing the workplace culture and employee morale. When employees see their company engaged in philanthropy and giving back to the community, it creates a sense of pride and purpose. This positive culture, in turn, boosts employee satisfaction, fosters teamwork and attracts top talent.

In fact, most employees today feel that being part of a company with a strong focus on corporate social responsibility is a key reason for staying with that company. According to an American Charities survey, 71% of responding employees say it is imperative to work where the company culture is supportive of giving and volunteering. And, according to a report from the Harvard Business School, 93% of employees believe companies must lead with purpose, and 70% of respondents say they wouldn’t work for a company without a strong purpose. A further 60% would even take a pay cut to work at a purpose-driven company.

Leading with purpose fosters a sense of engagement and fulfillment for your workforce, which in turn attracts a loyal employee base and leads to more opportunities for your business.

Leading your business with purpose also offers benefits that contribute to long-term success. It can be a key differentiator in a competitive market, attracting socially conscious consumers who align with the values of the business. For example, as consumers continue to choose purpose-driven brands, 69% of respondents to the American Charities survey reported their organizations have generated increased sales as a result of implementing corporate social responsibility practices.

Responsible practices

It’s key to approach corporate responsibility in an organic way. Companies should work with their employees to determine the causes they’re passionate about. This gives local employees, who are already ingrained in the community, the ability to determine where donations should go, making a more powerful, local impact.

Once you identify where your employees’ passions lie, you can make this a part of your internal practices by setting up employee committees to get them involved and engaged. For example, at RoundRoom, we have employee resource groups known as CORE Groups (Connecting with Others through Respect and Engagement) that include groups focusing on race, sexual and gender equality, mentorship and more. You can also research your local community to identify the gaps where support is needed and give your employees the time to support those causes by allotting paid volunteer time during business hours.

The importance of corporate giving extends far beyond a mere philanthropic endeavor. It is a strategic initiative that can lead to enduring success. By recognizing the interconnectedness between business and society, companies can strengthen their reputation, create a positive workplace culture and contribute to the betterment of their communities. Focusing on more than just profit allows businesses to embrace a broader purpose, inspiring stakeholders and fostering a legacy of positive impact.•

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Moorehead is the CEO of Round Room and each of its entities: TCC, Wireless Zone, Culture of Good and Redux.