In an article in Inc. magazine titled ‘Why It’s Crucial for Your Company to Give Back’, Marla Tabaka in interviewing Emma Leggat concluded that philanthropy programs maybe even more important for small businesses than they are for large organisations.
Leggat identified seven reasons why smaller businesses should consider establishing a giving program:
- Driving differentiation: given all else is basically equal, a product that supports a worthy cause may lead customers to switch brands and remain loyal (89% say yes);
- Community networking: Co-ordinating community events and/or volunteers can connect your business with hundreds of productive community members;
- Humanizing your brand: aligning your brand with a signature cause can lift your brand equity and provide rich shareable content;
- Building relationships with community leaders: worthy causes can directly connect you with community leaders and other key influencers;
- Low-risk test and learn: providing products and services at no cost to non-profit organisations can be a safe way to test and learn about your product/service;
- Team camaraderie: Worthy for-cause events can build team spirit very quickly;
- Greater productivity: Employees who give are known to be healthier and happier.
The above reasons are all good outcomes but perhaps there are even more fundamental reasons that underpin the competitiveness of businesses that would be reasons alone to establish a culture of identifying and supporting worthy causes.
The seven key traits (drivers) of business competitiveness are:
- Strong leadership providing direction and focus
- Focusing on the customer
- Vision in setting the future course aligned with purpose
- Creating the correct culture
- Being proactive
- Identifying the core competencies
- Recognising the importance of employees
Developing an attitude of giving as part of your business’s DNA will underpin each and everyone of the key success traits above and drive the performance of your business.
Two of fundamental connectors (reasons) are Purpose and Humility:
Purpose is the reason for your business’s exists and rests in the view that businesses exist to meet the needs of a community and that they should invest their profits in delivering greater value to the community and the needs that business seeks to serve. Many businesses do not have a purpose but believe vision and mission are the same; they are not.
Purpose creates an attitude that we (the business) exist to meet the needs of others and not to profiteer from them. It allows and supports a focus on customer need and therefore how those needs may be met to a greater level (more value). It becomes a basis for growth in that it focuses the entire organization on ‘where to’ next in value. Identifying for-cause needs supports connection with the community and also shifts the cultural focus from profit to need. It allows purpose to gain a life and a tangibility, and makes the focus on customer value real.
Humility is the core of worthy leadership, which is the most essential trait of a competitive business. Without worthy leadership any business is doomed to fail. Humility is in simple terms a real sense of gratitude and a sincere thanks for what you have. It is in one sense the opposite of pride and is focused on placing others first and placing yourself behind. An excellent book to read on the importance and benefits of humility is ‘Humilitas: A Lost Key to Life, Love, and Leadership’ by John Dickson. A leader with humility will recognise the importance of their employees, will focus on customer value, will lead others rather than focus on themselves, and so the list goes on. Humility allows you to focus on meeting the needs of others both in leadership and in meeting the needs of customers. It allows you to develop the traits necessary to effectively lead your organisation forward as a competitive business.
For any business, developing an attitude of giving in your business by example will not only help those that you seek to assist through your giving but it will give back to your organisation far more than you will give away.
