Driving growth through generosity

Paul Hargreaves at Cotswold Fayre and Flourish argues that extravagant generosity is the key to business success

 

If you’re among the folks who missed the point of Wall Street and you’re a Gordon Gekko fan, strap in, we’re about to explore why you should be focusing on a different G word – generosity. 

 

If our only real purpose within business is generating profit for the owners or shareholders, then there will likely be a lack of fulfilment and happiness for both the workers within that business and indeed the directors and shareholders too.  In time, and perhaps paradoxically, the business will be less successful than other businesses that have a purpose above that of profit alone. 

 

I am not proposing fiscal irresponsibility, but if we could learn to give to others and have an attitude of generosity to our workers before we think we can ‘afford’ it, we would have a very different business and a more financially successful one, in time.  

 

Business benefits

Businesses that embrace generosity—whether through financial contributions, employee volunteering, or resource sharing—can experience tangible and intangible benefits. These advantages extend to the workforce, community, and the business itself.

 

A 2023 survey (the Net Positive Employee Barometer) found that two-thirds of UK employees want to work for an organisation that has a positive impact on the world, and 91% of respondents to a 2024 Deloitte survey said volunteer opportunities can have a positive impact on their overall work experience and connection to their employer.

 

B Corps who are above average in how they treat their people are growing at 26% on average compared to 5% for other businesses (BEIS data Nov 2021), so what is good for the people is good for the business.  And remember being generous is good for our own wellbeing as leaders and increases the positive neurochemicals such as oxytocin in our own body.

 

Generosity, whether financial or through time and resources, isn’t just a moral decision, it’s a strategic one. Businesses that integrate generosity into their ethos often find themselves better positioned to attract talent, build stronger customer relationships, innovate, and sustain long-term success. These efforts create a cycle where giving back enhances not only community welfare but also business outcomes.

 

How to be more generous

1. Reward your staff

Start with your staff. Could you increase their pay or their holiday allowance? Or give them a share of profits at the end of the year? It’s fair that people are rewarded for contributing to the company’s success, and it will help them to feel part of the company, not just a cog in the ever-turning wheel.

 

Remember that the cost of recruiting new members of the team and training them up to full speed is estimated to be between £30-£45K.  Happy staff leave less often and don’t need replacing as often.  B Corps, who are more generous to their people, have attrition rates of 8% versus 18% in standard UK businesses (BEIS data Nov 2021)

 

2. Help the local community

Look to your local community. How can you help? Can you give staff time off to volunteer? Could you donate a portion of your profit? Could you donate in kind, for example, with product or your services?  

 

And don’t forget that volunteering is good for the wellness of our people too.  Listen to what Tim, initially a reluctant volunteer and one of our sales team said after volunteering, “Volunteering has been a revelation.  It is good for the soul, and I feel better about myself.  I have met people from diverse backgrounds who give up their time to support the charity.” 

 

3. Who are you employing?

Could you pay a little more and get better people? Could you widen the ‘type’ of person you typically employ? For example, could you employ from more diverse backgrounds, a wider variety of ages, or include neurodiverse people in your team?  

 

We employ 4 neurodiverse people at one of our sites as a deliberate policy and the knock-on positivity in the community who have picked up what we are doing is tremendous.

 

4. It isn’t just about money

Remember generosity is not always about money. It can be time off, or better conditions, longer holidays, opportunities to learn new skills, days out with the team. There are lots of ways to be generous that don’t require a pay increase.  

 

One thing we do at Cotswold Fayre is to give people an extra two weeks paid (or 4 weeks half-paid) holiday after they have been with us 7 years to take in their 8th year.  It’s a benefit people love and look forward to – very few people leave in years 6 or 7.

 

5. Give more

Always aim to give more than you think you can. Don’t bankrupt the company – but do be overly generous. The rewards will make it worth it in the long term.  

 

Think differently 

I attended a business summit recently when the problems of an underserved sector of society were being discussed.  There were business leaders, charity workers and community leaders present.  The discussions were going nowhere because the business leaders were only prepared to see solutions that were immediately going to increase their profitability to the frustration of others present.  

 

A different way of thinking is required.  Act first for the benefit of those under-served communities and you never know what hidden benefits may emerge.

 

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Paul Hargreaves is CEO of Cotswold Fayre and Flourish. He is the author of Forces for Good: Creating a Better World Through Purpose-Driven Businesses

 

Main image courtesy of iStockPhoto.com and Moncherie