The answer to the question is that there is no one-fits-all moment when companies should start engaging in philanthropy. However, here are some suggestions on when you might consider engaging in philanthropy.
When the Company Becomes Profitable
Whether you are making direct cash donations or buying products to help the less privileged in the community, the truth is that the balance sheet is affected. Often, companies find it challenging to donate cash before they can start giving or when making losses. Therefore, a new company might want to first grow profits or only allocate a small part of its fiscal budget for philanthropy.
In the Event of an Emergency Affecting the Community
When disasters strike, the impacts can be devastating, leaving society in big trouble. In such situations, you should not hold back in helping the affected. Common disasters that make companies offer some help to alleviate suffering include impacts from hurricanes, earthquakes, and war.
The most recent disaster to strike is COVID-19, and a lot of companies came through to offer some help. One such company is New World Development in Hong Kong, which is headed by CEO Adrian Cheng.
Hong Kong was hard hit by the pandemic, and New World Development launched initiatives that targeted helping people with basic services after the closure or collapse of their businesses. Other areas that New World Development has helped through philanthropy include education, mental health, and art.
When Targeting to Grow a Company’s Sustainability Record
When the concept of sustainability was coined in the 1990s, it was confused to only mean the environment. However, it was later expanded to include people and governance. As a company, you can target society by supporting projects that help to promote social equity and justice.
Good examples include contributing to feeding programs in schools and building homes for the homeless as part of your sustainability agenda.
Your company can engage in philanthropy at any time like Adrien Cheng, and it is important to ensure that the efforts deliver the anticipated results. Again, make sure to balance the company’s finances to ensure that the support is sustainable. If you adopt the programs for giving as part of the sustainability program, the efforts will have even more positive impacts on your company and society. Therefore, do not hold back because society needs you.
