The Generosity Advantage: A Research-based Call to Action for Businesses and Organizations

You already know how crucial physical and psychological wellness is to the quality of your life and your work. For me, that means I need coffee to shine.? Recently, on a crisp morning in Sunnyside, Queens, staring into a cashless wallet underneath the 40th street 7-train I was hungry, tired and running late to work. En route to direct a group that included professional opera singers from the Met, Broadway actors and world-class instrumentalists, I hadn’t eaten breakfast, and worse still- I hadn’t had a single cup of coffee. While resourceful and agile as a director and leader, without coffee- I am barely a person. Looking up with dismay, I?heard the kind voice of the owner of the cash-only coffee cart say “It's okay!” and begin to prepare a cup.?

Generosity may often be seen as a mere feel-good gesture or occasional act of charity. However, research reveals that generosity can be a powerful strategy and guiding principle that drives achievement, retention, and involvement in organizations. What if we reframed our perspective and wielded generosity as a key driver to unlocking companies, communities and businesses that thrive? Examining the biological roots of generosity, case studies and roadblocks to a generous mindset, generosity reveals itself beyond a feel-good gesture as a strategic imperative that has the potential to drive well-being, engagement, and organizational success.?

A Biological and Evolutionary Imperative:

Have you ever wondered why generosity feels so good? A Berkeley University white paper on generosity shared that our pro-social and generous instincts may have resulted from gene-culture coevolution, the interaction of genes and culture over long time periods and are integrated into our DNA (Henrich & Henrich, 2006). Generosity is hardwired into us. This is because, as the paper deduces, it effectively elongates our lifespan while also enhancing our quality of life. Might its ethos do the same for our organizations?

Our bodies physiologically reward generosity because it is effective for our survival. Even before we can articulate the word "generous," we exhibit this behavior. For example, the white paper cited a research study where toddlers younger than two are happier when giving treats to a puppet than receiving them. They are even happier when giving away treats from their own bowl than giving a puppet a newly discovered treat. The physiological reward of generosity is happiness! Our bodies recognize before our intellects that generosity is impactful in effectively engaging in an interdependent world. Additionally, generosity triggers the orbitofrontal cortex in our brains, which is involved in assessing the subjective value of our decisions. Generosity is intrinsically linked to forming effective strategy. While we have evolved to be both selfish and selfless like every element of a living ecosystem, we rely on the well-being of the entire ecosystem to thrive and recognize generosity’s role in that.?

Generosity as Strategy:? Driving Retention, Engagement, and the Bottom Line:?

Extensive research demonstrates that organizations prioritizing and practicing generosity as a core value experience higher employee satisfaction, lower turnover rates, and increased productivity. For example, over 76% of employees who experienced empathy (emotional generosity)? from their leaders say their engagement increased, and 61% report that this type of leadership makes them more innovative (Cone 2015.) When employees feel valued, supported, and empowered, they become more committed to their work and the organization's mission, resulting in enhanced customer experiences and a stronger bottom line. Companies and organizations that integrate generosity into their strategies and plans reap numerous benefits also.? According to The Charity Aid Foundation’s Corporate Market Study, 87% of businesses said corporate responsibility activity had a positive impact on their company’s reputation. Fostering a culture of giving attracts and retains top talent as well: businesses with a clear ‘Brand Purpose’, those perceived both internally and externally to genuinely be making lives better, grew three times faster in value on average than competitors over a 12 year study (Brown 2017.)???

Generosity also builds stronger relationships with customers and partners, and creates a positive brand image which fuels engagement. The Journal of Organizational Behavior followed 95 independently owned car dealerships from across the U.S. and found that the dealerships with a workplace culture that prioritized generosity (of community, corporation, and individual) had higher customer service ratings and sold more cars-even with the same slate of cars for sale- than their competitors. The positive effect of this culture on vehicle sales was fully mediated by customer satisfaction ratings (Boyce etc. 2015.)

This may prompt concern about the consequences of ignoring generosity as a strategic imperative- rightly so. A lack of integrity in generosity deteriorates companies, and a lack of accountable language around values does as well. A recent Gallup poll found that half of people who quit their jobs leave to get away from an ineffective or “selfish’ manager. 64% of workers won’t even take a job if a company doesn’t have strong “corporate giving and social responsibility values” (Cone 2017.)

It is apparent from the above examples that generosity has tangible and measurable benefits for business through attrition control, better hiring and higher revenue.

Overcoming Belief Barriers to Generosity:

Generosity as a principle is often hindered by various internalized misconceptions. Let's examine and refute some common barrier mindsets:

1. "I can't afford to give more": Generosity is not solely about monetary contributions. It encompasses a wide range of acts, including time, skills, resources, and empathy- you may be generous in untold ways without even identifying it as such! Everyone has the ability to be generous within their means in small and large ways, and even small acts of kindness and generosity can have a profound impact.
2. "Radical generosity is unwise/not business savvy": The majority of research demonstrates that strategic generosity is beneficial for businesses. It attracts customers, fosters employee engagement, and enhances brand reputation, leading to long-term success and growth. Generosity does not mean recklessness. It is about finding a balance that aligns with your values and capacity. Generosity can be practiced within sustainable boundaries.
3. "This person/organization/endeavor doesn't need my help/has enough": Generosity is not solely based on need; it is about building a culture of giving and making a positive impact. The intent can fuel a radical shift in strategic planning towards an endeavor’s success and a personal belief in the power of one’s own individual impact.?

Generosity is no longer an afterthought or a detached pursuit; it is a strategic imperative that can revolutionize businesses and organizations. Shifting the source of our communications from “what do I need them to know” to “what do they need to hear and feel from me” —shifting to a source of generosity- has the potential to level up engagements and build stronger relationships and endeavors from the jump. ?

The owner of that coffee cart in Sunnyside, Queens, impacted the outcome of so many people’s days that morning under the subway- and when I see lines leading up to his cart now I know why. He left me feeling hopeful, grateful and invigorated not just because of the necessary morning caffeine he offered, but because of his care. In turn, this made me not only into a loyal customer, but a staunch advocate: visit Sheref Abdelshafy’s coffee cart under the 40th street subway station next time you are in Queens!? Like Sheref, we may not see immediate transactional return on a fiscal level (he did not get my $2.50 that very day)- we may see transformational outcomes both fiscally and holistically (Sheref did get my 2.50 the next day, plus my purchase of a delicious muffin,? plus a generous tip plus a new, loyal customer poached from the corner deli.) As we immerse ourselves in the possibility of a generosity ethos, the ripples to its impact are boundlessly fruitful also. Sheref’s kindness launched a higher quality of work with my company the rest of the day.? When we truly live by values like generosity, we can create workplaces and communities that not only thrive, but cultivate further the fiscal and physiological well being of everyone they touch. Fundamental Generosity doesn’t just drive meaningful outcomes, it replenishes our businesses, organizations, and ourselves with an evergreen resource towards longevity, prosperity and potential.?

--

About the Author:

As a leader and consultant in communications, EDIJ, and strategic planning, Kate focuses on moving collaborators effectively through sticking points. At Stand & Deliver,?Kate Bergstrom ?works with clients such as Caterpillar and Cisco to embolden them to find powerful physiological presence, concision, and mission-focused clarity. Kate is also the proud founder of On The Verge, a fiscally sponsored performing arts non-profit focused on new work development encouraging cultural expansion.

As a professional theater and opera director based in New York, Kate knows firsthand the power great storytelling has to bring people together. A former Critic at Rhode Island School of Design, NYU & The New School as well as a guest lecturer at UC Santa Barbara and UC Los Angeles, Kate takes pride in helping students, colleagues and innovators thrive. A proud member of the Stage Directors and Choreographers union, Kate holds a B.A. from The University of California, Los Angeles, and an M.F.A. in Directing from Brown University.

About Stand & Deliver:

Stand & Deliver is a consulting and training firm that primes organizations for high-performance communication and leadership.

Through customized curricula and signature programs, we address the skills that move teams toward growth, transformation and innovation. Our faculty combines experience in business, education, arts and entertainment, and health and wellness—part of a sophisticated approach that helps organizations bring big ideas to the world.

Stand & Deliver

--

References:

Henrich, J., & Henrich, N. (2006). Culture, evolution, and the puzzle of human generosity. The biological evolution of religious mind and behavior, 10-41.

University of California Berkeley, Greater Good Science Center. (2018). The Science of Generosity. Culture, evolution, and the puzzle of human generosity.?

Boyce, A. S., Nieminen, L. R. G., Gillespie, M. A., Ryan, A. M., & Denison, D. R. (2015). Which comes first, organizational culture or performance? A longitudinal study of causal priority with automobile dealerships. Journal of Organizational Behavior, (volume 36)(issue 3). DOI: 10.1002/job.1985

Milward Brown’s BrandZ 2017 index

Cone Communications Millennial Employee Engagement study

The Charity Aid Foundation’s 2012 Corporate Market Study