Integrating Giving into Business: Canada’s Response to a Changing World

In the wake of the US election, Canada’s economic future is clouded by uncertainty. Shifting trade relations and market volatility have left businesses struggling to plan for the year ahead. As companies reassess their strategies for survival, one often-overlooked approach stands out: corporate philanthropy.

Giving back can be a recession-proof investment that strengthens businesses while supporting local communities. As Canadian companies face pressures both domestically and globally, there’s a growing realization that embedding philanthropy into their core operations not only benefits communities but also strengthens the foundations of the businesses themselves. 

Corporate giving is an untapped resource that has the potential to fuel innovation and drive economic growth at a national scale.

A Wider Movement in Canada

Many of the country’s most successful companies have integrated philanthropy into their business strategies.

Wattpad, a platform that connects writers and readers, is a great example. In 2021, Wattpad was acquired by South Korean Internet conglomerate Naver Corporation in a deal worth $754 million CAD. Wattpad leveraged this major financial event as an opportunity to make a generous donation to SickKids as part of its commitment to giving back. Rather than simply retaining profits, the company reinforced its commitment to corporate social responsibility. 

By investing in a well-respected institution like SickKids, Wattpad was able to strengthen the healthcare sector, which is a key part of the economy. The donation also strengthened Wattpad’s reputation, making it more attractive to employees who value giving back. Corporate generosity was seen not just as good ethics but as good economics.

TD Innovation Partners, Fasken, and DMZ are just a few other leaders who have integrated philanthropy into their business practices. 

By investing in causes that matter to their employees, these companies are not just contributing to the greater good; they are also enhancing their internal culture, boosting employee satisfaction, and improving retention.

The statistics speak for themselves: a 2019 study by Imagine Canada revealed that nearly a third (28%) of Canadian employees would accept a pay decrease to work at a company more committed to supporting the community, with the average person willing to forgo 12% of their salary. The same study found that employees who perceive their company as highly committed to the community are more likely to stay, be loyal and share a common purpose with their employer.

A Key Investment in Canada’s Economy

Corporate donations with organizations like SickKids Foundation are pivotal in cultivating homegrown innovation that directly benefits Canadians, both in terms of health advancements and economic development.

Take, for example, the work being done by Canadian companies within Tech+Biz4SickKids, a collective of innovators, changemakers, and entrepreneurs who believe in the future of healthcare for the next generation on a mission to raise $1 million a year to support Precision Child Health at SickKids. Through such partnerships, Canadian companies are not just contributing to societal welfare, but they are also able to actively contribute to the creation of cutting-edge healthcare solutions that strengthen our economy, improve lives, and enhance the country’s global competitiveness.

Health breakthroughs that stem from investments in causes like SickKids not only save lives but also create opportunities for job growth, innovation, and international collaborations. For example, the research and technological advances made possible by philanthropic investments have led to new medical treatments, the development of diagnostic tools, and the training of a new generation of health professionals. These advancements support Canada’s health sector while attracting global attention and investment, creating a cycle that nurtures both healthcare and economic growth.

The Economic Impact of Corporate Giving in Canada

Philanthropy in business can be used as a driver of change. In the case of healthcare innovation, the benefits extend beyond the immediate effects on individual health. The breakthroughs made possible by corporate giving create entire industries and new job sectors. A report by Citi Private Bank found that the broad value of philanthropy accounts for over 10% of GDP per year in some economies, and even higher in the US. 

The success of Canadian health technology startups, funded in part by corporate donations, has turned Canada into a hub for global health innovation. Just this year, a $1 million donation from The Savvas Chamberlain Family Foundation, in partnership with Huron Digital Pathology and supported by the Ontario Bioscience Innovation Organization (OBIO), enabled Grand River Hospital to launch its Digital Pathology program. If this can be done in Ontario, imagine the scale of opportunities at a national level.

Supporting healthcare institutions doesn’t just improve the country’s health, but it also enhances its international competitiveness. When Canada leads in healthcare innovation, it attracts investment and top medical talent from around the world, creating a ripple effect that boosts our economy across various sectors, from tech and research to manufacturing and talent development.

The Government’s Opportunity to Step Up 

To ensure that Canada remains a leader in innovation, we must embed philanthropy into the DNA of our businesses here at home. Corporate giving should be seen as a strategic investment in the long-term sustainability and growth of our economy.

The Canadian government can implement incentives for companies to give back. Tax credits and deductions can be given to businesses that contribute to healthcare research, hospitals, and even health technology startups. In fact, the government can introduce a matching grant program with eligibility criteria available.

There are already healthcare innovation incubator hubs across the country, so why not offer tax benefits to those who participate? Last year, Techstars Toronto shuttered its operations, which led its LA counterpart to recognize Canadian medical startups in their 2024 Techstars Healthcare Accelerator. Local startups are flocking to the US for support due to our inactivity. The Canadian government needs to fund these accelerators and provide incentives to those who give back at the same time.

Why not leverage public funding agencies like The Canadian Institutes of Health Research, which is a federal agency responsible for funding health and medical research in Canada? Let’s work together to drive discoveries and innovation and give back to the very companies that are working on these discoveries.

We need a collective commitment from Canadian businesses to make giving back a central part of their operations. By supporting health initiatives specifically, businesses will not only see improved engagement and retention but will also position Canada as a global leader in economic, social, and health advancements.