Why Extravagant Generosity is the Key to Business Success
Greed is good, said fictional corporate psychopath Gordon Gekko – but in the real word, there is a different G word we should be focusing on: generosity. Whether financial or through time and resources, generosity 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.
Suppose our only real purpose within business is generating profit for the owners or shareholders. In that case, 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.
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.
So, how can you be more generous?
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)
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.”
Think about who you are 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.
Remember generosity is not always about money
There are various ways to be more generous to your workforce beyond a pay rise. You could increase their holiday allowance or organise a contra deal that sees your team benefitting from discounts, or treat them to a company party in summer, not just at Christmas. Ideas like these help people feel more valued and provide incentives to stay with the company.
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.
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.
ABOUT THE AUTHOR:
Paul Hargreaves is a speaker, author, CEO and B Corp Ambassador. He is one of the leading voices in the UK encouraging and inspiring businesses to make a positive impact on the world, strongly believing that businesses should be a Force for Good, which is the title of his first book.
Paul’s is CEO of Cotswold Fayre, a large speciality food and drink wholesale business supplying over 2,000 retail sites in the UK. In 2021 the company opened Flourish, its first foodhall, restaurant and home and lifestyle store and has opened a second store in November 2024.
Cotswold Fayre was one of the UK’s founding B Corps in 2015 and the company was named in 2024 as Elite Business’s No 1 in The SME Top 100. It has won the Lloyd’s Bank ‘Purpose before Profit Award’ and a coveted Grocer Gold Award. Paul’s team of over 150 is constantly looking for ways to be generous and compassionate by putting people and planet before profit; this is at the root of the business’s success.
Paul believes that to bring the radical and systemic change required to reverse climate change and the growing inequality in the world a new compassionate, loving and servant-hearted leadership is required. This is what he calls The Fourth Bottom Line, the title of his second book and his new podcast.
LinkedIn: https://www.linkedin.com/in/paulwhargreaves/
YouTube: https://www.youtube.com/@paulhargreaves636
Forces for Good book: https://amzn.eu/d/9S12bFc
The Fourth Bottom Line book: https://amzn.eu/d/etUjwe3
The Fourth Bottom Line Podcast: https://shows.acast.com/4th-bottom-line