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Return On Social Investment

As part of their corporate social responsibility, corporations the world over give away lots of money to organizations that help the disadvantaged in the society; most of which are non profit. In America, this money amounts to more than $10 billion to charitable organizations annually. Many of such corporations do so because they are bound to comply by law but many others see it as a means to getting ahead of the pack in their markets. So, is there any return on social investment that these corporations make? Do they make these investments expecting a return? Do they even realize that this is an investment in the first place?

Investing in the community has been known to have its own returns although not in the short term and as part of the long term policies of a company, social responsibly is viewed as one of the most important investments a company can make. It enhances the company image worldwide.

Companies that help out the society’s disadvantaged also attract bright minds and talented individuals who later join them. This is the main reason that they target institutions of higher learning and public high schools as part of their social responsibility. It is a win-win scenario for both the society and the business persons; a bright needy child gets a scholarship to study and the company gets a potential addition into their staff.

This social responsibility also increases revenue for the company. You many wonder how this happens and how a company can give away millions and expect to get this money back in the long run. Well, studies have shown that people are most likely to buy and use products and services of companies that are involved in a social responsibility program since they know them from their programs. If you help out the society, your company gets loyal customers especially amongst those that are helped. You will have advertised your brand effectively too and managed to increase the morale of your current employees who will have now seen that you help out rather that bank all your profits.

Large and small companies have their own ways of giving back to the society and while some have staff whose work is philanthropy, others donate company stock whose benefits they put into charitable trusts and organizations. A company should strategize and see which kind of giving will best suit their needs and those of the society.

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