In today’s economy, there are many reasons why business leaders should promote company involvement within their community. Community work not only demonstrates a company’s values to its employees, customers, clients, and partners, it also is a major facet of a company’s identity as a whole, a concept that in turn promotes the long-term well-being of a business even in economic downturns.
Forming Connections Within the Community
Indeed, one of the most important aspects of promoting community involvement within a business environment lies in the profound potential for networking that such involvement creates. Community involvement shows potential business partners and clients the values that a company holds most dear, and these values are more often than not one of the most important aspects of forming new partnerships with community leaders and organizations.
Building Employee Loyalty
The same principle holds true in the connection between community involvement and employee relationships. Talented employees increasingly want to stay with companies whose values harmonize with their own, meaning that a commitment to local charities and public programs can go a long way towards building team camaraderie in the workplace.
That connection between business leaders and their charges can in turn allow a business to reach its full potential by developing employee talent and capability over the span of many years, rather than dealing with high turnover rates and time lost retraining new workers.
Demonstrating a Commitment to Client and Customer Communities
When customers and clients see that a business is committed to helping a community to succeed, they will be far more likely to support that business through thick and thin, say experts. Businesses sometimes forget, for example, that even a small number of loyal customers can mean the difference between long-term success and short-term “gains” that end in failure. For leading businesses, that is a risk that is simply not worth taking.
Putting the 80/20 Rule Into Effect
Referred to as the “80/20” rule in business circles, the thinking goes that 80 percent of a company’s business will come from 20 percent of its clients and customers. Those long-term partnerships that develop around a shared worldview can be vital to a company’s development over time.
While it was once common practice for businesses to base their most important policies solely around shareholder interests, it is becoming increasingly relevant for companies in the 21st Century to regard their community as a major influence in the corporate decision-making process.
For many businesses, the rewards found in developing a shared worldview based on mutual values with clients, partners, and employees can provide resilience in good times and bad and create a growth mindset that produces big results. Many of today’s most successful business leaders simply wouldn’t have it any other way.