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Small business owners and entrepreneurs often have a long list of things to get accomplished, and while there are seemingly not enough hours in a day, making time for community involvement should be a priority.
The power to make a positive impact through community involvement translates to benefits for the business, customers, employees and the community.
Here are some of the impactful benefits which accrue from business community involvement.
1. Creates a positive workplace culture
Ingraining community involvement in company culture creates a happier workplace. Prioritizing volunteerism and social responsibility has a positive impact on employees, improving their morale and increasing job satisfaction. According to research by Boston College, "employees with favorable perceptions of their organization's corporate citizenship tend to experience higher levels of self-efficacy, hope and optimism about work."
Community involvement also improves company culture by helping to build strong teams. A study on volunteerism found that 92% of employees believe volunteer activities through work develop their people and teamwork skills, and 77% believe they strengthen relationships.
In short, giving back to the community increases engagement in an organization, which creates a positive workplace culture.
Related: 5 Easy Ways to Make Philanthropy Part of Your Company Culture
2. Cultivates customer trust
Authentically and consistently showing care for and involvement in the community builds the trust necessary for creating a loyal customer base.
Customers trust businesses that care about the community they serve.
When consumers believe that a business is truly invested in the community, they become more connected to that company. The positive perception fostered by giving back to the community increases customer trust, making it easy for consumers to support a business that is involved in the community over one that is not.
3. Attracts and retains talent
Employees today want to work for a company that gives back to the community. In fact, one survey points to community involvement as a powerful recruiting tool. More than 80% of company respondents in the survey reported that community involvement helps improve the ability to recruit employees and reduce turnover.
There is no question that community involvement helps companies attract and retain millennial and Gen Z employees who now make up nearly half (46%) of the full-time workforce in the U.S. These generational cohorts want the companies they work for to lead the way in giving back to the community.
Related: How Growing Businesses Can Prioritize Community Involvement
4. It helps the community thrive
Thriving communities are hubs for thriving businesses. Giving back to the community helps develop the community which is great for those living there and equally great for businesses located there.
It creates a kind of symbiotic relationship that is beneficial to everyone. By investing time and money in the community, businesses can help address community problems and needs and spur economic growth.
5. It's easy to give back
There are many ways for business owners and entrepreneurs to give back to their communities. It's easy to become involved in the community by volunteering and encouraging employees to volunteer themselves, sponsoring a sports team, organizing food drives, funding a scholarship and partnering with a nonprofit organization.
A great way to identify community involvement projects is to ask employees and customers about community needs and how the company can be most impactful in providing time, resources or money (or all of the above) to help.
Related: The Power of Giving Back: How Community Involvement Can Boost Your Bottom Line
6. Giving back is good business
Entrepreneurs recognize that giving back to the community is good business.
A survey examining the philosophies, attitudes and activities of entrepreneurs related to their communities found that 91% of entrepreneurs are currently engaging their communities outside of their business responsibilities, and 44% say their businesses have grown as a result of engaging their communities. The majority of entrepreneurs surveyed stated that their motivations to engage the community centered around personal values and passion.
The bottom line is that community involvement is the right thing to do. Business owners and entrepreneurs should lead by example, demonstrating a passion and commitment to the well-being of the communities they serve. Amazing benefits will accrue from there.
FAQs
Engaging your community in product development not only enhances customer satisfaction but also drives innovation that meets their evolving demands. Enhancing Customer Support: Community engagement provides an avenue for customers to support each other, creating a self-sustaining ecosystem.
How does community involvement benefit a business? ›
Engaging your community in product development not only enhances customer satisfaction but also drives innovation that meets their evolving demands. Enhancing Customer Support: Community engagement provides an avenue for customers to support each other, creating a self-sustaining ecosystem.
In what ways can a business benefit a community? ›
Local businesses contribute to the city's tax revenue, which can be used to improve infrastructure such as roads, schools and public parks. When consumers buy goods and services locally, the taxes they pay benefit their community, which ultimately improves their own lives.
How does community service benefit a company? ›
A separate study by Microedge found results that confirmed increased employee engagement as a key benefit of a volunteer program. The study found that employees who regularly volunteer tend to feel more loyalty to the company and to feel proud of working for the company compared to employees who don't volunteer.
How to get your company more involved in the community? ›
Community Engagement Ideas for Companies
- Support Other Local Businesses. ...
- Host or Participate in Charity Events. ...
- Participate in Local Events. ...
- Sponsor Events and Organizations. ...
- Sponsor Community Developments. ...
- Hold Contests. ...
- Incentivize Employee Volunteer Engagement. ...
- Make Your Property a Shared Space.
There are so many ways small businesses benefit the community; they create jobs for locals, they encourage economic growth, they lessen the environmental impact – just to name a few.
What is a major benefit of a company participation in community activities? ›
Creates a positive workplace culture
Community involvement also improves company culture by helping to build strong teams. A study on volunteerism found that 92% of employees believe volunteer activities through work develop their people and teamwork skills, and 77% believe they strengthen relationships.
What can you benefit from the community? ›
Having a sense of community
- ◾ SUPPORT Being part of a community enables us to give support to other members. ...
- ◾ INFLUENCE With community participation comes empowerment. ...
- ◾ SHARING stimulates innovation and growth. ...
- ◾ REINFORCEMENT can be an effective learning tool to encourage desirable behaviours and provide motivation.
However, the negative impact of business on society cannot be ignored. Exploitative labor practices, unethical supply chains, and a disregard for consumer safety can harm individuals and communities, highlighting the need for businesses to mitigate their negative social impact.
Why is community involvement important? ›
Community engagement can lead to improved outcomes for communities when government organizations and public decision-making entities seek out the aspirations, concerns and values of communities, who, in turn, share their aspirations, concerns and values with governing entities.
Engaging in social and community activities enhances emotional resilience, reduces stress, improves mood, instils a sense of belonging, and promotes purposeful living. This active involvement also boosts self-esteem, builds social support networks, and contributes to an overall balanced and fulfilling lifestyle.
What are 10 benefits of volunteering for the community? ›
See a list of reasons that will help you make up your mind.
- 10: It's good for you. ...
- 9: It saves resources. ...
- 8: Volunteers gain professional experience. ...
- 7: It brings people together. ...
- 6: It promotes personal growth and self esteem. ...
- 5: Volunteering strengthens your community. ...
- 4: You learn a lot.
Engaged communities can contribute to business growth through increased customer retention, valuable feedback that informs product development, and word-of-mouth referrals that expand the brand's reach. Community building is a wise investment that offers a competitive edge for any company across all industries.
How a company can contribute to the community? ›
6 Ways Your Business Can Get Involved in the Community.
Partner with a local non-profit organization. Donate and support charity events and organizations. Volunteer at or sponsor community events. Host community events.
How does community help business? ›
Increasing Networking Opportunities
Community involvement can encourage networking, both between employees and with others in the community. For example, a service day could bring together different branches of an organization so employees can interact across offices and build relationships while serving others.
Why should a company be involved in the community? ›
Strengthening Reputation and Credibility:
Long-term involvement in community development builds business credibility. Businesses that invest their time, skills, and financial resources become genuine collaborators in community development.
How community engagement helps business? ›
So community engagement can give you a great platform to build positive customer relationships, which in turn could lead to greater customer retention and repeat purchases (5). Reputation building: when you actively support and contribute to your local area, community members will see you as more than just a business.
What is the importance of community involvement? ›
Community Involvement
They act as incubators for shared interests and values, providing a platform for individuals to come together, collaborate, and collectively address local issues.
What are the benefits of community relations for business? ›
For businesses to succeed, it's essential that they attract and retain customers to generate revenue and profits. Connecting with community members by developing local relationships can help businesses resonate with customers and demonstrate their commitment to the community.
Why is a community important for your business? ›
Corporate organizations must expand their dynamics beyond the workplace and engage in community involvement. Getting involved in a community gives businesses a platform to create a positive impact and promote the organization's core values.
