By Ibi Montesino – Executive Vice President, Chief of Staff, Herbalife
Businesses today understand that doing good is just as important as doing well. That’s why more organizations than ever before are implementing some form of philanthropy program. Some attribute this change as a realization that there is a corporate obligation to give back to the communities that foster them. Others would say that companies have made philanthropy a priority in order to compete in the modern marketplace, because that is what their employees and their customers demand.
Regardless of the reason for the change, one thing we can all agree on is that community engagement and charitable giving can improve the lives of those in need and cultivate a society that is stronger and more inclusive. We are more aware than ever of the gaps and systemic failings in our society that prevent people from reaching their full potential and, in some cases, even deprive them of their fundamental needs. And while many of us and the organizations we work for want to make a difference and establish strategies to help these big issues, it’s important to focus on the issues where you will have the most impact. In other words, where is your wheelhouse?
How should a company proceed when determining which philanthropies it will support? Among the most essential considerations is ensuring that your giving program complements your overall brand. This purpose driven decision making will create authenticity and engagement throughout the program.
Connecting Corporate Philanthropy and Mission Creates a Solid Basis for Success
The combination of corporate philanthropy and a company’s mission creates a firm foundation for success. By aligning your corporate giving programs more closely with your company’s mission and purpose, you can make a real impact in the community while also bolstering your company’s bottom line. Since charitable giving can improve financial performance and is not merely a distribution of profits, it may be correlated with your company’s future revenue growth. Further, a corporate-giving program can increase the value of a company in the following ways:
- Encouraging employee retention and satisfaction.
According to the Academy to Innovate HR, nearly two-thirds of U.S. workers acknowledge the pandemic has altered their priorities, and 82% believe that that a company’s purpose is essential. So, aligning your giving with your purpose may generate new value and enhance your company’s competitive advantage, particularly in unexpected areas such as employee recruitment.
- Promotes growth by fostering customer loyalty, establishing trust, and expanding your customer base.
Customers prefer to purchase from charitable organizations because doing so makes them feel good. They are aware that they are a part of something greater than themselves and that their purchase is affecting global change. In fact, 81% of millennials indicate a desire to support brands that demonstrate corporate citizenship.
- It’s the right thing to do.
You do not need to undergo a life-altering event to create a situation where giving back is essential to you or your business. It could be because it makes you and those around you feel good, or it could be because it is vital and could save a life.
Why Giving Is Essential to Global Corporations
Companies can and should have a larger impact on charitable giving than individuals. Businesses are integral components of the communities in which they reside. They are contributors to national, and even international causes, and supporters of local organizations. This participation can affect anything from innovative research to community endeavors and even neighborhood initiatives.
All actions, regardless of size, have the potential to move the needle in a positive direction. Businesses that engage in philanthropic endeavors can garner tangible short- and long-term benefits. Further, giving encourages businesses to go beyond meeting KPIs and generating profits in order to foster a more generous and positive work environment.
By establishing a partnership with a charity, businesses can also increase their awareness of a particular issue and use it as the foundation for a training program or initiative that provides tangible benefits to their employees.
How Being a Good Corporate Citizen Can Be a Key Pillar for Global Corporations
This is all well and good, but how does it look in the real world?
As a leading brand in health and wellness, Herbalife is committed to operating its business in a socially responsible manner, incorporating community outreach and environmental stewardship. So, when faced with deciding on the type of philanthropic work we should do, we look inward at our wheelhouse, helping people live healthy active lifestyles so that they can live their best life.
We recognized that good nutrition is necessary for all children. In the developing world, 66 million primary school-aged children attend classes hungry. Chronic malnutrition in early childhood is associated with lower educational attainment, inferior cognitive skills, lower earnings, and an increased likelihood of living in poverty. Our Casa Herbalife Nutrition program seeks to improve the lives of children in need by partnering with existing charities to provide healthy meals and nutrition education to children around the world. Through the generous support of the company’s independent distributors and employees, the Herbalife Nutrition Foundation (HNF) continues to provide the proper nutrition and education necessary for the wellness of children and communities, and in 2022, granted $5.12 million to 178 local organizations, benefiting 229,000 children in more than 59 countries.
Herbalife recognizes that by extending beyond financial support, we can play a much more significant role in community development and addressing social issues. We built upon our purpose-driven philanthropy by fostering more than 20 programs and partnerships with nonprofit organizations focused on health, wellness, and nutrition worldwide, including World Food Program USA, Global FoodBanking Network, and Feed the Children among others.
In conclusion, corporate giving should be an intrinsic part of any business. Entrepreneurs who discover what people need and want and provide it reap substantial rewards in today’s society. It is acknowledged that community development and social responsibility go hand in hand with business growth and success. Corporate giving is personally satisfying, can strengthen employee relationships, and can result in a positive return on investment for a company.
