In the current scenario, companies have increasingly engaged in social projects as a way of contributing to the sustainable and balanced development of society.
Specifically in the sports field, this participation has stood out, generating benefits not only for the communities involved, but also for the companies themselves.
In this article, I will address the Return on Investment (ROI) of corporate involvement in sports projects and how this adds value to the business.
Understanding Social ROI
ROI, or Return on Investment, is a commonly used metric for evaluating the effectiveness of financial investments.
But how do we apply this concept to social investment? Social ROI focuses on quantifying the social and economic impact of a given action or program.
In this case, we use it to measure the value generated from the engagement of companies in sports projects.
Suppose that company X invests Y amount in a sports project for young people in a community. The Social ROI of this investment can be calculated by the following formula:
- Social ROI = (Social and economic benefit – Investment cost) / Investment cost
In this case, the social and economic benefit may include factors such as improved health and well-being in the community, increased employability, reduced crime, in addition to increased consumption of the product due to social marketing.
Benefits of sports projects for companies
Below I have separated some benefits that investing in sports and social projects can bring to a company both in the short term and in the long term.
Brand building
One of the biggest benefits of investing in sports projects is the opportunity to build and strengthen the brand.
Companies that actively support these projects are seen as socially responsible, which improves their reputation and public perception.
For example, company X can sponsor a local football project, increasing its recognition in the community and strengthening its image as a brand that cares about social development.
Relationship with the community
Through involvement in sports projects, companies have the opportunity to establish and strengthen relationships with the local community.
This can generate a sense of loyalty among community members who can become consumers and brand advocates. And you can be sure that this makes a big difference for your business.
Talent development
Investing in sports programs can also be an effective talent development strategy. Well, you can identify and nurture young talent who could become future collaborators or brand ambassadors.
Therefore, investing in social projects not only offers tangible benefits, such as building a brand, strengthening relationships with the community and developing talent, but also contributes to the general improvement of society.
