Good Works and Philanthropy Can Be Part of Small Businesses Too
More and more trends in business are turning towards companies doing good in the communities in which they live. Many of my articles have often outlined my personal opinion about the good that socially responsible companies do. Typically larger corporations with large budgets are more capable of good works. However, the trend also seems to hold true for small businesses as well. In fact, it is becoming part of the business plan according to today's Wall Street Journal. The article Small Companies Put Charity Into Their Business Plan: Doing Good Helps Engender Loyalty But Can Be Costly explores the question Can you do well at business while doing good? The article talks about how most larger companies and entrepreneurs often work in giving back from the beginning, but it is a phenomena not seen in most start-up businesses because it can add a burden to the overall bottom line. However, in the long run it may help the bottom line because customers of the business will be loyal as well as the employees who believe in the company's mission. In addition and according to the Center on Philanthropy, the article points out that such philanthropic programs will help you retain your customers. Having philanthropic program as part of your small business practice automatically identifies your company with the good that you and your company are doing. It's not all about money. It also can be about In-kind (product) donations as referred to in the article.
On the flip side of all the "good" doing good can do for your company, there could be a downside if you over promise and under deliver. In that case, as the article so finely puts it, you could be forced to tap into your own pocket, which may not be good business sense at all. All in all, I am wholly in favor of small businesses making philanthropy part of their business plans with the caveat that your philanthropic good works have to be strategically thought out and planned; they also have to align in some way with what you personally believe in and how it fits in with the mission of your business.
To me if you are a small business owner, you can't go wrong doing good.
To read the WSJ article including the case studies Click Here.
On the flip side of all the "good" doing good can do for your company, there could be a downside if you over promise and under deliver. In that case, as the article so finely puts it, you could be forced to tap into your own pocket, which may not be good business sense at all. All in all, I am wholly in favor of small businesses making philanthropy part of their business plans with the caveat that your philanthropic good works have to be strategically thought out and planned; they also have to align in some way with what you personally believe in and how it fits in with the mission of your business.
To me if you are a small business owner, you can't go wrong doing good.
To read the WSJ article including the case studies Click Here.
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