Many family-owned and private businesses can tell you how much they gave last year.

Fewer can explain what those investments are intended to achieve.

That distinction matters.

According to Deloitte, social impact has evolved from a public relations exercise into an increasingly important component of business strategy. As expectations from employees, customers, communities, and other stakeholders continue to grow, companies are under increasing pressure to define and articulate their approach to philanthropy.

For business leaders, this presents an opportunity to think differently about corporate giving.

Most executives routinely evaluate a range of tools to help strengthen their business: investments in talent, customer relationships, leadership development, innovation, marketing, and strategic partnerships. Increasingly, philanthropy deserves consideration alongside conversations to advance the community’s – and the company’s – goals.

When overlooked, companies may be leaving an important asset underutilized.

Utilized well, philanthropy should be approached no differently than any other business investment: with clear goals, thoughtful planning, and a defined sense of what success looks like. Research suggests stakeholders evaluate a company’s philanthropic portfolio as a whole, not simply through individual donations. In other words, people are often responding less to any single gift and more to the broader story a company’s giving tells.

Does your philanthropy reflect the values you want associated with your business? Does it advance solutions for your industry’s challenges? Does it support the culture you’re trying to build within your organization?

These questions are increasingly relevant in attracting and retaining talent. Deloitte found that 76% of Gen Z and Millennial workers consider a company’s social impact efforts when choosing where to work. Other research has linked strong social impact programs to significantly higher employee retention and engagement. Importantly, the lesson is not necessarily that companies should give more. It may be that they should approach giving with the same intentionality they bring to other important business decisions.

In today’s environment, philanthropy is more than an act of generosity. It is one of many tools available to business leaders. And like any tool, its value is realized not simply by having it, but by using it purposefully.