Summit Ghimire is the founder of Outpace, an SEO agency. He helps national and enterprise businesses exceed their revenue goals.
In the wake of a series of natural disasters and humanitarian crises in 2023, the theme of philanthropy has become increasingly woven into the public consciousness. For small businesses, this evolution is a natural development. According to SCORE, small businesses donate 250% more than larger enterprises to local nonprofits and community causes. Despite the difficulties SMBs face, 75% of small-business owners donate an average of 6% of their profits to charitable organizations.
As SMBs strive to establish themselves in part by fostering positive public identities, it can be tempting to utilize philanthropic actions as a means to this end. However, doing so misses a crucial point and may serve as a wasted opportunity to develop a meaningful company culture that features authentic integrity and a stronger foundation for future growth.
Unraveling The Elusive Nature Of Company Culture
Defining company culture can feel like one of those nebulous concepts that are too elusive to nail down. While there is a wealth of research and resources accessible with just a few clicks, the data and opinions can begin to blur, leading to inaction. For many leaders, it can feel counterproductive to broach the topic at all.
Despite this complexity, company culture is fundamentally a reflection of the shared values, goals, attitudes and practices that embody an organization. Functioning much like an individual’s character and personality, this culture shapes how employees interact, decide and work. We can distill the essence of company culture into several core elements:
• WHY: The organization’s mission and vision; the purpose driving its existence.
• WHAT: The core values and beliefs that form its ethical backbone.
• HOW: The established norms and expectations that guide employee behavior.
Defining company culture is complicated by the diverse nature of business, with each organization influenced by a specific combination of industry, location and size. This variety ensures no two businesses are the same and each workforce is unique.
In smaller to midsize businesses, company culture is notably more fluid. Given their structure, these companies typically have agility and adaptability that larger companies can’t replicate, featuring an identity more easily influenced by individual employees.
Why SMBs Have An Advantage When It Comes To Philanthropy
Small-to-midsize businesses have many traits that uniquely position them to pursue philanthropic efforts. It can be argued that authentic connection is the factor that fuels an ability to effectively support, volunteer and grow communities.
Given their smaller makeup and structure, SMBs often have more agility and flexibility for meeting emerging, pressing needs within their local communities. This adaptiveness can allow for the optimal distribution of efforts and resources to achieve the best outcomes. With leaner staff and more nimble resource allocation, an SMB may more readily find innovative partnerships and customize initiatives while limiting schedule bloating and resource-constraining misfires. Tighter relationships between leadership and staff also help create an environment where a company’s values and passion evolve to reflect all parties involved.
This collaboration across all levels of an organization can fuel ownership and awareness of philanthropic efforts. With intentional community connections and a strong internal culture, the flow of actionable, meaningful information between an SMB and its local community can deliver optimal outcomes for those in need.
There’s no denying that greater financial support and broader resources will naturally boost philanthropic engagement. However, I have found that the employees and their passion for their communities typically have a farther reach.
Best Practices For SMBs Seeking To Integrate Philanthropy
When integrating philanthropy into operations, you can tackle the initiative on two fronts: philosophical and practical. To successfully invest time and resources into philanthropy, here are some best practices to consider.
1. Assess community needs. The best way to achieve a positive impact is simple: Determine where help is needed the most in your community.
2. Stay in your lane. Remember perspective. There are areas of need you can impact most effectively because they fall within your wheelhouse.
3. Leverage internal expertise. When matching community needs with your company’s capabilities and capacities, involve those internal individuals and teams who have the most relevant expertise.
4. Start small. To avoid overextending yourself, start by tackling more manageable projects or investments before gradually expanding.
5. Find and maximize partnerships. Seek other SMBs in your community or industry that have aligned interests and capabilities for cooperative resource utilization.
6. Track impact and be transparent. Establish accountability and visibility into your initiatives to cement greater ownership and understanding in your team.
7. Celebrate and share success. Doing so can profoundly impact enthusiasm, both internally with your employees and externally with the local community, partner entities and customer bases.
Philanthropy’s Positive Influence
The benefits of philanthropy are extensive. In addition to the organizations and communities directly affected by the time and resources donated, those responsible for the charitable actions and the companies they represent can reap unique benefits, as well.
Positive Impacts On The SMB:
• A reputation for altruistic volunteerism can be developed across multiple arenas, including within a community, an industry and a workforce, which can benefit employee retention and recruitment.
• Employee engagement is not only essential for most philanthropic endeavors but also for the evolution and sustainability of a positive culture, particularly in terms of job satisfaction.
• Community relationships and customer engagement often go hand in hand, with positive experiences on either front boosting customer loyalty and sustainable growth.
Positive Benefits For Employees:
• Personal fulfillment is a natural byproduct of volunteerism, enhancing physical and mental well-being.
• Enhanced morale and job satisfaction from philanthropic initiatives can positively impact job performance and career development potential.
• Philanthropic initiatives provide opportunities for professional and personal networking through extensive community engagement.
Strengthening SMBs From The Inside Out
The fusion of philanthropy and company culture holds immense potential for small-to-midsize businesses. But I believe the real opportunity lies in its internal impact, both organizationally and individually, as organizations benefit not only from external goodwill but also from a more engaged and motivated workforce. In this sense, philanthropy becomes more than just a positive endeavor; it can also become an integral part of an organization’s DNA.
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