Why truly ethical organisations increase their donations to charities in line with their growth in profit.

As the charity sector reflects on the recent findings from The Charities Aid Foundation (CAF) as published in Civil Society, We wanted to look at this from a company with a values led perspective and to highlight why truly ethical businesses choose to link their charitable giving to a fixed percentage of their profit rather than an ad hoc amount.

This isn’t just about the value of the donation itself, it’s about making a statement to all stakeholders that is backed by actions: ‘As our profits increase so does our commitment to the planet and our values led purpose.’.

Walking the talk: What sets ethical organisations apart

It is disingenuous for companies on one hand to constantly promote their ethical credentials but on the other reduce their net spend to good causes while their Shareholders reap the rewards.

When it comes to supporting society, talk is cheap, we call on ethical organisations to take the lead of many B Corporation companies by committing a fixed percentage of their profit to charitable giving. By doing this companies help weave their values into their DNA and prove to their staff and community that they truly care. This creates a better working culture and in turn a better customer experience.

REAL Fundraising for example donates 20% of all profits to good causes.

Consistency: A gift that keeps on giving

Being ethical isn’t about one-off gestures, it’s about a continuous and sustained impact. Organisations that tie their charitable donations to a fixed percentage of profit ensure that they are in it for the long haul. A commitment to causes that matter, year in and year out.

Going big while staying responsible, make the world a Shareholder of your company.

Growth is fantastic, but not when it tramples over societal needs. Ethical organisations get this balance right, by linking charitable donations to a fixed percentage of profit, they prove that prosperity doesn’t mean turning a blind eye to societal well-being. It’s a way to grow responsibly, marrying financial success with positive change. As companies grow and flourish, they play their part to help society do the same. In essence by giving a fixed percentages of profits to good causes, you are giving the needs of the world a seat in your shareholders meetings and ensuring ethical behaviour is given the status and gravitas it deserves.

Transparency: The key to building trust

Transparency isn’t just a buzzword, it’s a hallmark of ethical practices. Leading a values-driven fundraising agency, we know that workers respect if not demand authenticity. Cementing charitable giving as a percentage of profit adds a layer of transparency that resonates with the values of the B Corporation certification, where accountability isn’t just preached but practiced and it is rewarded by additional certification points through the Impact business model

Real-world Problems, REAL commitment

The problems our world faces are persistent, not fleeting and in many cases getting worse. Many governments, including the UK’s are reducing their aid spend and seemingly starting to shirk net zero commitments for example. Never have charities been needed more and ethical business should be standing shoulder to shoulder with them in Earth’s hour of need.

Ethical organisations don’t just making headline grabbing ‘toe in the water’ gestures to good causes, activist organisations know that a full on commitment is what is needed. By dedicating a fixed percentage of pre tax profit to charitable causes, organisations are not just spectators; they’re active contributors to addressing real-world issues. That’s the kind of commitment that makes an impact, and it’s the essence of values led leadership.

Wrapping it up: pledging for a brighter tomorrow

Ultimately ethical organisations that link their charitable giving to a fixed percentage of profit are demonstrating solidarity with the heroes in society, those committed to setting a course for a brighter future and leaving a legacy of good for generations to come.
Those businesses aren’t just reaping selfish short term rewards. They are planting trees under whose shade they may never sit.
That has to be better than a short term return?

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