I - Discussion- "Benefits of Strategic Philanthropy"
• Describe strategic philanthropy in your own words.
• Does strategic philanthropy influence your brand loyalty? Why or why not?
II - Please write a short response to the following posts:
C D's post
I believe strategic philanthropy is when a company has a plan to help the community without receives any monetary benefits back. The benefits do not come in the form of money, but rather the support of the community, happier employees, and a stronger brand.
I think strategic philanthropy slightly effects my brand loyalty. I will sometimes keep up with companies and what they are doing to benefit others, but it hasn't been something that I am very up to date on. If I were to know that a company is doing outreach work in the community, and not for monetary gain, it would sway me to purchase their items more often. If I were more informed on the programs with the brands that I buy, I would most likely just stick with that brand. It's very important for the big companies to give back to their surrounding communities because most of those communities are going to fill the jobs or purchase the products at the store.
S N's post
Strategic philanthropy describes the practice when companies get involve in good causes or human rights to increase their brand popularity and their profits in direct or indirect ways. Companies invest in good causes so the non-profit organization and the company itself may benefit. For example a company can increase its reputation and the non-profit organization may draw more attention to the cause.
Strategic philanthropy does influence my brand loyalty. I would rather buy products from a company, which supports good causes. There is a shoe store in Germany, where 10% of my purchase goes directly to an organization supporting the rain forest. I rather buy shoes in that store, than any other store, since the prices are still fair and it helps supporting a good cause.
Shell and Pepsi are two other companies, which have great programs. They have for example matching gift programs for their employees, which means they match each donation from an employee to a good cause with a ration1:1.