The Company Citizen: Why Should Business Work with Charities?

‘Business doing good is doing good business’ – in his new book, The Company Citizen, Tom Levitt argues that business should work with charities not just for the good of society, but also in their own interests. Here are the three lessons we learned about why business should give to charities from reviewing this hot-off-the-press book.

Lesson 1

Charitable giving of cash is tax efficient – this is true, yet this should not be the only reason why companies are donating to charities. There are other long-term benefits for the companies, if they choose to incorporate corporate social responsibility (CSR) into their daily practice. To use the words of Tom, this is where business giving should start and not end.

Lesson 2

Supporting charities can boost public interest and customer loyalty. Tom points out that Marks & Spencer maintains its successful partnership with Oxfam, notwithstanding recent events, and Boots’ liaison with Macmillan Cancer Care is now six years old. In both cases the relationship is not confined to cash but includes employee volunteering, training, skills exchange and strategic gifts in kind. As gifts in kind can reduce waste, surpluses and processing or disposal costs, this model is particularly suitable for small companies who want to make a big impact for a smaller cost.

Lesson 3

Employee engagement is the biggest prize a business can win from giving to charities. Doing good with fellow employees can generate a greater sense of purpose, which in turn enhances employee loyalty and engagement. An engaged employee is a committed employee who is more productive and a better ambassador for their company.

How to engage employees in charitable giving? When it comes to donating money, the simplest way is to set up a payroll giving scheme, which allows employees to donate from their pay – before tax is deducted.

Another way of getting employees involved in charitable giving is to partner with charities. Depending on the charities’ needs, a company can donate certain goods, products or services either to help the charities’ beneficiaries or to facilitate the day-to-day management of the charities.

One of the most efficient way, however, is to allow employees to use their professional skills in a good cause which is also in line with the company’s mission. It would further heighten the sense of involvement and control if employees could have a say in choosing which charities to work with by voting on platforms such as whatCharity company tool.

Positive, active and sustained support of charities should be a hallmark of modern business, as corporate social responsibility creates a win-win situation for both charities and companies.

 Tiia Sammallahti

CEO

whatCharity.com

 About the author of The Company CitizenTom Levitt: Tom is a writer and consultant on responsible business, a former Labour MP and a some-time social entrepreneur, being co-founder of the ethical lender Fair for You. ‘The Company Citizen: Good for Business, Planet, Nation and Community’ is his third book since 2010. His clients to date have included major corporates, SMEs, charities, social enterprises, councils and government departments.