When Hurricane Beryl barreled its way across the Caribbean in early July, leaving a trail of destruction, it was the earliest Category 5 Atlantic hurricane ever recorded.
This is not a good sign for what was already predicted to be an above-normal Atlantic hurricane season, which runs from June through November.
The frequency and severity of extreme weather events like what we have seen in recent years serves as a wake-up call for companies and consumers alike. Federal and local agencies alone do not have the resources to assist everyone. This presents an opportunity for manufacturers and retailers to fill the gap. They can be a critical part of the solution, helping impacted communities get back on their feet — and build their resilience to recover better for future disasters.
One of the most impactful ways businesses and retailers can meet these demands is by donating unsold finished goods and products. This practice not only supports their corporate social responsibility (CSR) goals but also offers numerous strategic advantages. Here’s a closer look at how donating goods can benefit companies in multiple ways.
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1. Sustainability: Giving excess inventory a second useful life.
Companies often end up with unsold product due to overproduction, seasonality or changes in consumer preferences. Disposing of these products in landfills not only harms the environment but also misses an opportunity to contribute to communities in need. By donating these items, companies can extend the lifecycle of products that would otherwise go to waste. This practice aligns with the principles of a circular economy, reducing waste and conserving resources.
In 2023, Good360 diverted over 156 million pounds of goods from landfills by redistributing them to thousands of nonprofit organizations around the country and the world. By partnering with us, our donor companies, which include some of the world’s biggest retailers, demonstrate to their customers that they are committed to environmental stewardship and making good on their sustainability goals.
2. Reverse logistics: A more sustainable solution for customer returns.
According to the National Retail Federation, 14.5% of all sales were returned in 2023, amounting to $738 billion in merchandise. While the return rate was lower than the all-time high of 16.5% in 2022, these returns produce an enormous amount of waste. You also need to consider the vast expenditure of resources, including packaging and transportation, that it takes to get products to and from consumers.
The increasing popularity of ecommerce has exacerbated the problem of customer returns. Returns from online sales came in at 17.6% last year, compared to 10% for brick-and-mortar stores.
Managing returned goods is costly and environmentally damaging if the products are simply discarded. However, by partnering with organizations like Good360, companies can turn a logistical headache into a philanthropic opportunity. Donating returned items helps ensure that products are reused, thereby conserving resources and reducing the carbon footprint associated with manufacturing new products using virgin materials. Additionally, these donations can be efficiently routed so companies can save on the costs required to process these returns as they normally would.
3. Brand value: Enhancing reputation — and profits — through sustainable practices.
Consumers today are more likely to support brands that demonstrate genuine commitment to sustainable and ethical practices — and they’re voting with their wallets. McKinsey has found a material link between business growth and brands that show commitment to environmental, social and governance (ESG) initiatives. Consumers are “shifting their spending toward products with ESG-related claims,” the consulting firm reported. Products making these claims averaged 28% cumulative growth versus 20% for products that made no such claims, McKinsey found.
Companies that donate unsold goods and products can significantly enhance their brand reputation by showcasing their dedication to reducing environmental impact and supporting community welfare. Good360 has found that donations resonate well with consumers who prefer to patronize socially responsible brands. This positive perception can translate into increased customer loyalty and a stronger brand identity.
4. Better disaster response: Improving how we help communities through smarter giving.
Natural disasters create immediate and immense needs for various goods, including personal care products, cleaning and building supplies and nonperishable food and water. However, many items sent are often not needed or totally inappropriate for the type of disaster response needed (think donations of evening gowns and high-heel shoes), leading to waste and inefficiency. By some estimates, as much as 60% of all goods donated in disasters can’t be used.
Companies can adopt a more strategic approach to disaster giving by partnering with experienced nonprofit organizations that understand the specific needs of affected communities on the ground.
Good360’s disaster recovery efforts provide a blueprint for effective disaster response. In 2023, following the Maui wildfires, Good360 coordinated with local nonprofits to deliver over $1 million worth of essential safety gear and home goods to those affected. Such targeted donations ensure that the right products reach the right people at the right time, maximizing the impact and efficiency of the aid provided.
The Long-Term Value of Product Philanthropy
Donating goods and products offers a multitude of benefits for companies, from advancing sustainability goals and managing reverse logistics to enhancing brand value and ensuring effective disaster response. As extreme weather events become more frequent and severe, the assistance that the private sector can provide to impacted communities only becomes that much more crucial.
Organizations like Good360 provide a valuable conduit for businesses to channel their excess inventory toward meaningful causes. By partnering with such nonprofits, companies can make a tangible difference in the lives of those in need while also achieving their own strategic objectives. Embracing the practice of product donations not only drives positive social and environmental impact but also reinforces a company’s reputation as a responsible and forward-thinking leader in today’s market.
As Good360’s VP of Disaster Recovery, Jim Alvey works across public, private and nonprofit sectors to increase the efficiency and impact of in-kind donations in the disaster space. Since 2016, he has been building and maintaining corporate and foundation relationships based on trust and appreciation for the roles each of us play in closing need gaps in our communities. Alvey’s primary focus areas are developing products and funding partnerships that support pre-positioning of products and long-term recovery efforts, while also providing thought leadership to organizations interested in learning more about disaster solutions and recovery.
