Currently, philanthropy is associated with people or companies that volunteer to carry out work that is related to the assistance and progress of others, especially in the community and elsewhere. This is done either through donations to charitable organizations or communities while seeking the participation and support of a sector of society or its workers immediately. There are several companies including Cane Bay Partners that work with the idea of optimizing the quality of life of some people and allowing them to make potential progress. Companies that sponsor through philanthropic work offer financial contributions for others to start social growth projects.
Purpose of Philanthropy in Business
Large organizations carry out these activities without thinking that their success can be so positive that the observed income makes the increase and the incorporation of new areas within the organization viable. Indeed, companies are a fundamental part of the social world, because they play an essential role in the different aspects of human beings and society, favoring a nation’s economy to positively impact local and global progress.
Philanthropy in business does not lie in giving gifts, but also it intends to establish relationships in a direct, real, and close way with the community of which they are part. There is some assistance to the community that transcends beyond granting money or facilities. In the same way, it works by cooperating and using your knowledge, experiences, and the correlation of other people.
Corporate Social Responsibility
More and more are known about the actions that companies take to help their environment for corporate social responsibility (CSR), but this way of acting is also of great importance in family businesses that mostly carry out philanthropy actions. Family business philanthropy is all those activities that members of the company make on their own and invest their own resources to give back some of what they have gained from society while wanting their activities to have a positive impact on the environment that the business develops.
Philanthropy can be done through different mechanisms: from the company that becomes a CSR, family office with investments in funds dedicated to social enterprises, with foundations or donations, and also with its trust. The companies that practice philanthropy generate changes within their institution such as greater adherence among all members, transmit family values, attract younger generations, trigger social entrepreneurship, and emerge new leaders, which offers greater value to the company. When the owners of family businesses transmit values to their children and teach them to see the problems that society has and that can be solved through the organization, then they will not see the support as a form of charity or obligation, but as a sustainable business model.
Likewise, this will be enhanced to a higher degree of philanthropy where the focus is on local communities, but with greater global impact, in addition, that social networks and crowdfunding are used. Business families that want to survive must be able to foster an entrepreneurial mindset among their young people. If that mentality is based on values, entrepreneurship will be more sustainable and in line with the demands of society. When children design sustainable business models and not charity, you will be helping them to improve the world, generate social and economic wealth, as well as preserve the legacy of the family business.
In conclusion, philanthropy in business should be perceived as one of the capabilities of Corporate Social Responsibility where it is convenient to find common skills that favor the community and, consequently, the business as part of the whole.