Have you ever heard the popular phrase, “It is better to give than to receive?” I would be shocked if anyone reading this blog hadn’t heard it. In the Bible, the book of Acts 20-35 details the meaning behind it. In short, you will derive greater life satisfaction if you consider giving. Giving is just as relevant today as it was in biblical times. This maxim is also true when assessing organizations. 

Companies, organizations and people all consider ways to help their fellow man. Charitable donations, employee volunteerism, and social impact programs are staples in many organizations. Companies of all sizes, shapes, and flavors benefit by considering these initiatives. I believe it was Henry Ford that said, “a business that makes nothing, but money is a poor business.” More on @Ford in a minute.

Most companies today provide charitable donations, whether they are in cash, services or volunteerism. Why is that? Companies give for several reasons. The most obvious one is that by giving, it helps enhance their corporate image and keeps the brand top of mind with consumers. Having a positive company image leads to more sales but it also leads to higher employee retention rates and increased employee loyalty. 

The U.S. tax code also encourages giving because of financial implications. Charitable donations lessen the overall tax burden as taxable income. Depending on the nature of the giving, some companies are able to get rid of slow-moving inventory and directly lowering inventory carrying costs. In most cases, the distribution of these goods allows the charitable company to reap half of the market value of the gift and increase profits (or reserves). 

Supporting local communities also has an overall positive effect. It drives brighter futures for younger generations and those that are less fortunate. By investing corporate social capital into the communities, it helps to create a stronger community.  When a company allows its employees to volunteer, empowerment for local employees is an enriching experience.  Today’s employees are looking for ways to volunteer where they work and play. Even executives in the organization can join the fun. 

If there are any themes to my writing, it is that I fundamentally believe that what gets measured gets better. Each company that works on corporate responsibility should have measurements to understand their social return. Executives and managers think in these terms. What is the year-on-year growth of giving in dollars and taxable income impact, and does it mirror the growth in revenue? Other common methods for measuring the success of these campaigns is to review the total employee participants, total number of events, or total number of recipients of the donations. The measurements can become as creative as there are ways to give. 

I was recently doing truck research and became enamored with the Ford F-150. As I quickly discovered, like the varying degrees of options in the F-150, Ford has several different for charitable giving. Some of these initiatives include education, community life, and driving safety programs. On the education donations, they have given more than $18 million to grants supporting diversity and inclusion. The grants which they have for students are the “Ford Blue Oval Scholarships,” “Ford Driving Dreams Through Education,” and “Ford College Community Challenge.” Ford also has the “Partnership for Advanced Studies” next generation learning program, which teaches twenty education modules through local public schools. The content? Courses on limiting driver distraction, how to use speed and space management, vehicle handling and hazard recognition.

Ford also has philanthropy programs. Two stick out. The first is their “Feeding America” campaign, which distributes food products throughout the United States. They also have the “Helping Hands” program, which helps them reach senior citizens and disadvantaged communities such as the homeless. The best part about both campaigns is that Ford administers them through the Ford Volunteers Corporation, an internal volunteer group of Ford employees. These employees give their time to help homeless people throughout the world rebuild their lives. In most cases, these volunteers are helping to package meals, but they have also lent a hand in soup kitchens, shelters and pantries. 

If it appears that I’m now a salesman for Ford, I guess you could be right. However, a simple truck buying search landed me down the path of assessing whether Ford had social impact programs. Today’s consumers and investors care about ESG (environment, social and governance) programs. Companies weight these initiatives against competitors. Companies are no longer able just to compete on price and availability. They also need to make an impact in the world. 

So the next time you are in the market for a new vehicle, a new home appliance, or the latest smartphone, consider other aspects of the organization you are buying from beyond the well-known components of quality, reputation and price. A word of advice for any organization considering social impact programs: Discover the right cultural fit for your social impact programs first. Don’t give just to make it appear that you are giving. Be genuine in your attempts. If you don’t, you risk tarnishing the organization’s reputation.