Importance of being charitable for personal well-being and corporate success

In a world that often feels increasingly divided, acts of charity stand as beacons of hope and solidarity. Whilst charity inherently benefits those receiving it, being charitable also profoundly impacts the well-being and success of the giver, whether that is an individual or a corporation.

At this time of the year, we are perhaps at our most charitable. In this article I aim to explore why being charitable is essential for personal and corporate well-being, how kindness and compassion fosters a thriving society, and why businesses with a charitable culture often experience greater success. To enrich this discussion, several prominent industry figures have also shared their insights.

Personal well-being

Enhanced mental health

Giving to others reduces stress, combats depression, and increases overall happiness. Acts of charity release endorphins and oxytocin, promoting mental well-being and fostering a sense of purpose.

Stephen Bassett, former Chair of AFPA Trust and NED of several lenders reflects: “Most people I know give to causes they feel strongly about. They do not make too much of it, they just do it because it is the right thing to do. Personally I want to improve things and helping to fund them does give me a closer connection to those charitable aims.”

Improved physical health

Studies show that regular charitable acts lower blood pressure, reduce chronic diseases, and increase longevity. These benefits often stem from reduced stress and the social interaction that accompanies volunteering.

Rob Harris, Chair of Liberty Leasing Trustees and NED of Marsh Finance, has volunteered at Loose Ends Newbury, a local homeless charity, for several years. He shares: “Supporting a charity, whether through fundraising or volunteering, makes vital contributions to others less fortunate. Even small acts of kindness and respect can have the most significant impact. If you can give your time, it’s deeply rewarding and simply the right thing to do.”

Building relationships

Charitable activities often involve interaction with others, strengthening social connections and fostering a sense of belonging.

For instance, my involvement with the local round table after moving to London in the 1990s helped me build lifelong friendships, develop leadership skills, and give back to the community.

Self-esteem and fulfilment

Knowing that one’s actions make a positive difference boosts self-esteem and provides a sense of accomplishment, enhancing life satisfaction.

Jane Bird of CGI notes: “Being charitable is one of the most rewarding things you can do. It is not just about helping others; it is about finding purpose, building self-esteem, and connecting with your values. Giving back reminds me of the good people are capable of and creates a sense of fulfilment that stays with me long after the act.”

Corporate well-being and success

Enhanced corporate reputation

Companies actively engaging in charitable activities enjoy a stronger public image. Consumers increasingly prefer businesses committed to social responsibility, particularly in the age of ESG and CSR.

AFPA Trusts Charity Partnership scheme exemplifies this. In 2024, this initiative donated nearly £60,000 to 26 charities, enabling businesses to enhance their charitable profiles at AFPA events whilst at the same time supporting multiple worthy causes.

Employee satisfaction and retention

Charitable initiatives foster a positive work environment, making employees proud to work for a socially responsible company.  This pride increases job satisfaction and contributes to lower turnover.

As Jane Bird of CGI further observes: “Charitable work builds a culture of care, making employees proud to be part of something while fostering stronger relationships with clients and partners who share those values.”

Strengthened community ties

Charitable businesses form strong bonds with communities, leading to beneficial partnerships and critical support during economic downturns.

Randy Haug, EVP and Co-Founder of LTi Technology Solutions emphasises: “Charitable giving is foundational to our company.  We provide support throughout the year to organisations with great need and encourage our employees to donate their time and resources. Giving humbly and with intention helps our community and models the way for others.”

Innovation and growth

Charitable cultures foster empathy and creativity, encouraging employees to develop innovative solutions to social and business challenges.

Google’s “20% Time” Policy is a prime example. Google’s engineers used this initiative to reduce data centre energy consumption by 40%, achieving significant cost savings and sustainability goals whilst driving innovation.

Financial performance

Embedding a culture of Corporate & Social Responsibilityinto your businesscorrelates with higher profitability and stock performance.  Companies benefit from increased loyalty among consumers, employees, and investors. 

John Phillipou, MD of SME Lending at Paragon Bank and Chair of The Finance & Leasing Association, highlights: “Charity is about three things; Time, Talent and Giving.  Whether volunteering, offering expertise, or donating, balancing these elements is good for the soul and profoundly impacts charities in need.”

Conclusion

The importance of being charitable cannot be overstated. For individuals, it enhances mental and physical health, builds strong relationships, and provides a sense of fulfillment. For businesses, it boosts reputation, fosters employee satisfaction, strengthens community ties, drives innovation, and improves financial performance.

By embracing charity, both individuals and companies contribute to a more compassionate, harmonious, and prosperous world. Ultimately, being charitable isn’t just about supporting charities; it’s about fostering kindness in everyday actions–holding a door open, saying hello, or simply offering respect.  These small acts create a ripple effect, proving that generosity enriches us all.