The ‘WHY’ of Sustainable Philanthropy Framework

Overview

Engaging in sustainable philanthropy allows businesses to tap into diverse value streams that contribute to their sustainable growth over time. Persistent philanthropic efforts amplify this value, reinforcing business reputations for dedicated and meaningful contributions to social good.

The ‘WHY’ of the Sustainable Philanthropy Framework articulates that businesses stand to gain value through philanthropy on a spectrum, of which the ends are defined as value protection and value creation.

Value protection

Engaging in philanthropy can help preserve a business’s worth for the future, covering concrete aspects like revenue and less tangible elements such as reputation, both which are vital for sustained success.

Out of 177 globally operating businesses polled, 66% stated that the most important benefit of community investments is an improved reputation of brand perception.

Value creation

Philanthropy helps businesses foster long-lasting benefits for stakeholders. It also generates real world gains, such as new employment opportunities, and cultivates intangible rewards, such as customer loyalty, which can collectively benefit the business, its clients and the wider community.

Research has shown a statistically significant positive correlation between a business’s market value and its philanthropic actions based on 965 businesses operating in Europe.