Giving back to our society is one of the most fulfilling roles as a human. While individual donations are the most common form of charity, there falls a social responsibility on the corporate world as well.
Business giants like Tata, Wipro and Birla groups are actively involved in social welfare, but given the country’s current state in terms of economy, poverty and illiteracy, it is just not enough. As the Indian economy has worsened after the pandemic, corporate donations are needed now more than ever.
Fortunately, there are plenty of benefits that business houses can receive from a charity, and we have compiled 4 main reasons why it can be good for business.
1. Gain customers trust
With a rise in conscious consumerism, brand values which align with consumer beliefs tend to do well in the market. As per the Global corporate sustainability report by Neilsen, 66% of consumers prefer a brand that is more socially responsible. Therefore, companies which go the extra mile to help their communities, gain a stronger and loyal customer base. For example - Google plays an important role in educating children of third world countries by donating to Learning Equality, a non-profit organization working for the same cause. Whereas, engineers at Xerox volunteer their time to teach robotics to high school students.
2. Boosts employee morale
Quite often, employee expectations from the companies go beyond salaries and profits. Millennials, who will form 75% of the workforce by 2025 will majorly choose a socially conscious company.
As per a study conducted by Cone Communication, 64% of millennials will refuse a job offer if the company is not involved in business charity. Nevertheless, when employees dedicate their time to a social cause, it creates an emotional connection with their work. And not only it improves their engagement with the company, but also creates a sense of contentment and positive work culture.
3. Improves public image
In this social media era, with every brand just a look away, the most important thing that a company can develop is a good public image. Consumers, especially millennials, are getting peculiar about the companies they associate themselves with. As a result, brands are always on the go in generating ideas to improve their brand image. Besides, sponsoring a charitable event can increase your brand visibility through word of mouth and social media platforms.
4. Tax benefits
Under section 80G of Income Tax (IT) Act, contributions made for charitable purposes like medical relief, supporting an NGO, funding education, are eligible for tax exemption. However, donations made only to the non-profits identified by the Income Tax department are qualified for this exemption. In addition, The Indian Ministry of Corporate Affairs has allowed all the charities made with respect to Covid-19 like funding scientific research, equipping front line workers, hunger reliefs to be included as corporate social responsibility and hence, applicable for tax exemption.
Lastly, we believe that, apart from the benefits, the utmost purpose of donation should always be for the betterment of the community. Every business, whether large or small, is capable of creating a positive impact through the act of charity and pave the way for a better and brighter future.
It can have a substantial impact on consumers, employees, and everyone connected to the company. So pick a cause that makes you believe in righteousness and make the community a better place to live.
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