A company’s charitable actions can make a difference to its net profits. The “benevolent halo effect” leads customers to believe that the products of socially responsible companies are better-performing.
Beware of bending the facts to fit a sales goal, though. Fast-food chain Chipotle is being grilled for “stoking anti-GMO hysteria” to get more customers through its doors.
But if you do it right, all those donations to the United Way, the Red Cross, and Habitat for Humanity might just pay off for your company.
PriSim Business War Games Inc. runs and designs customized business simulations that teach decision-makers about business, strategy, finance, and leadership.