Leadership and philanthropy can lead to exponential business growth and expansion in several key ways.
Robert DeFalco, Owner/Operator of Robert DeFalco Realty, exemplifies the synergy between leadership and philanthropy in driving business growth. Under his leadership, the real estate company recently expanded its operations, opening new offices and increasing its market presence in Brooklyn and Staten Island, and partnering with Think Mortgage to offer comprehensive real estate services.
This expansion shows DeFalco’s strategic vision and commitment to giving back to the community. DeFalco’s philanthropic initiatives include substantial financial and participatory support for the Tunnel to Towers Foundation and organizing events like the Annual Evening Fundraiser for Breast Cancer Awareness. These efforts enhance the company’s reputation, attract top talent, and open new business opportunities.
Here, we sat down with DeFalco to get to the heart of it all: Why do excellent leadership and extensive philanthropic efforts make such a difference in driving business growth?
Company Reputation
Philanthropic efforts enhance a company’s reputation, making it more attractive to customers, investors, and potential employees.
“When a business actively engages in social responsibility, it demonstrates a commitment to making a positive impact beyond profits,” DeFalco explains. “This causes increased customer loyalty and trust, ultimately boosting sales and market share.”
A study published in the Harvard Business Review found that companies with a strong sense of purpose and a commitment to social responsibility significantly outperform the market. Purpose-driven companies experienced 12 times higher growth compared to those that did not prioritize purpose and philanthropy. Additionally, the CECP (Chief Executives for Corporate Purpose) “Giving in Numbers” report shows that companies with robust corporate giving programs see a positive impact on their financial performance. For instance, companies that increased their giving by 10% or more had median growth rates of 5.4%, compared to 1.2% for those that did not increase giving.
Built-In Networking
“Leaders involved in philanthropy often connect with other influential individuals and organizations,” says DeFalco. “New connections can open doors to new partnerships, collaborations, and business opportunities. Networking through philanthropic activities can also lead to valuable insights and resources that support business expansion.”
Positive Company Culture
“Effective leadership fosters a positive company culture, inspiring teams to perform at their best,” DeFalco says. “Leaders who prioritize their team’s development and well-being cultivate loyalty and motivation, resulting in higher productivity, innovation, and a more cohesive workforce, driving business growth.”
Indeed, leadership that encourages philanthropy often fosters a culture of creativity and innovation. By addressing social issues and supporting community initiatives, businesses can uncover new markets and develop products or services that meet emerging needs. This proactive approach to problem-solving can differentiate a company from its competitors and drive growth.
“Plus, a strong leadership vision combined with a commitment to philanthropy can attract top talent who want to work for companies with a purpose,” DeFalco shares. “Employees are more likely to stay with a company that aligns with their values, reducing turnover and the costs associated with recruiting and training new staff. A dedicated and stable workforce contributes to sustained business growth.”
Deloitte’s 2021 Millennial Survey indicated that 49% of millennials and Gen Zs make career choices based on their personal ethics. Companies with strong leadership and philanthropic values attract and retain top talent, which is crucial for innovation and long-term success. Plus, a Gallup study on employee engagement found that businesses with highly engaged employees outperform their peers by 147% in earnings per share. Effective leadership and a culture of philanthropy contribute to higher employee engagement, driving business performance.
Flatten the Competition
“Honestly, companies that integrate philanthropy into their business model gain a huge competitive edge,” DeFalco admits. “Consumers are increasingly favoring businesses that demonstrate corporate social responsibility. By aligning philanthropic efforts that matter to us with our business objectives, we can differentiate ourselves in the marketplace and attract a loyal customer base.”
The 2017 Cone Communications CSR Study revealed that 87% of consumers said they would purchase a product because a company advocated for an issue they cared about. Additionally, 76% would refuse to buy a company’s products or services upon learning it supported an issue contrary to their beliefs. This demonstrates how philanthropy and social responsibility can drive consumer loyalty and sales. Furthermore, the Edelman Trust Barometer has consistently shown that businesses seen as ethical and socially responsible are more trusted by consumers. The 2020 report highlighted that 73% of respondents expect CEOs to take the lead on societal issues rather than waiting for governments to impose change. Trust in a company can lead to higher customer retention and attract new customers.
Extra Perks
“Also, philanthropy gives tax benefits and improved financial performance,” DeFalco states. “Companies that engage in charitable activities may qualify for tax deductions, freeing up resources that can be reinvested into the business. Additionally, the goodwill generated through philanthropy can translate into increased sales and profitability.”
In summary, the synergy between strong leadership and philanthropy creates a virtuous cycle of growth and expansion. By fostering a positive company culture, enhancing reputation, creating opportunities, driving innovation, attracting talent, gaining competitive advantage, and boosting financial performance, businesses like Robert DeFalco’s can achieve exponential growth and sustainable success.
About Robert DeFalco
Robert DeFalco Realty was founded in 1987 by Robert DeFalco, a real estate Broker/Owner who wanted to help families achieve their dream of homeownership. Through the philosophy ‘Treat People Well,’ Robert DeFalco has grown into a successful real estate agency led by a professional team of highly-motivated real estate associates with experience in residential, commercial, and new real estate development. For more information, please visit http://defalcorealty.com/