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This article includes historical information for context. While the core content remains valuable, some details reflect past events and may not be up to date. We regularly update our blog to keep you informed of current insights.

Lest anyone think that corporate social responsibility is fluff, they should consider the following: Fortune Global 500 firms spend roughly $20 billion on corporate social responsibility annually. (1) It is literally big business.

What, exactly, is corporate social responsibility? More than 100 Fortune 500 chairmen and chief executive officers define it as the following: (2)

  • Delivering value to customers by meeting or exceeding expectations
  • Investing in employees by compensating them fairly, providing critical benefits, educating and training them to fully prepare them for accelerated changes happening in the world, and encouraging diversity, inclusion, and respect across the board
  • Acting as reasonable, fair, and ethical partners to suppliers
  • Supporting local communities and implementing sustainable practices to preserve the environment
  • Delivering long-term value to stakeholders, being transparent with them, and engaging effectively with them

These goals seem straightforward and achievable, yet many companies struggle to meet them.

Execution Is Everything 

While it is relatively easy to fulfill corporate social responsibility in one or two aspects of a business, the organization must implement these measures in every area to truly demonstrate it.

For example, when it comes to valuing all stakeholders, including employees, the business must incorporate these measures into the recruiting and hiring process, sales, customer and IT support, interactions with vendors, involvement in programs in the local community and interaction with leadership in various markets and critical industries where laws impact stakeholders.

Additionally, this entails making conscientious decisions about the company a business keeps, whether this involves sponsorship opportunities, volunteer efforts, donations, contributions, the types of products they purchase, or the companies from which they buy.

The disconnect that many organizations have between their perception of corporate social responsibility and the full extent of what is required is certainly understandable. In the past, corporate social responsibility was about taking on one or two projects and lending budgetary support to help improve communities. While these projects do make an impact, the results are often short-lived.

A recent study by Global Affairs (3) revealed that, despite well-intentioned efforts, few of these efforts translated to significant, long-lasting improvements due to a lack of genuine change on both sides.

  • Advocacy is necessary to ensure that changes made are implemented across the industry and market, and that they are adopted by lawmakers, decision-makers, and those with influence to bring about real change.
  • Communities producing raw products, offering services, or manufacturing products need assistance in developing and disseminating information about the issues they face.
  • Buyers and investors need to be more diligent about sourcing to understand the origins of products and services and to factor in fair trade practices.

Major Changes Are Ahead 

The recent global crisis forced co-workers to rely heavily on technology to interact. This is great for expediting engagement. However, it presents challenges when companies need the “feet on the ground” aspect of making changes that have a real, lasting impact. Communicating via a Zoom meeting and a mobile device is not the same as doing so firsthand. This makes in-person communication essential. In today’s world, it often involves a team rather than just one or two people.

The value of employees is becoming increasingly essential, especially those who align with corporate social responsibility goals, drive a positive corporate culture, foster a positive work environment, and serve as critical drivers of outcomes. Leadership will need to find new ways to recruit and retain top talent, but more importantly, proactively develop long-term plans for promotion and succession. The current climate is one in which employees must feel valued, encouraged, and respected. The days of leading from the top down are giving way to a more collaborative approach, and workers are demanding greater equality and equity in the workplace.

Transparency across organizations and externally is now imperative. The words spoken, the behavior exhibited, and the relationships established can be searched and uncovered in a matter of minutes. People will define organizations by elements such as their connections and online reputation.

Fear will drive behavior and trends long after the recent crisis has passed. Months of social isolation, lifestyle changes, and the avoidance of a normal state will have lasting repercussions. These repercussions will cause issues with safety, trust, reluctance, anxiety, avoidance, and changes in perceptions. Simply adapting to new circumstances will not guarantee the survival of businesses. Making significant changes immediately is essential.

Avoiding the urge to sell everything under the sun and be everywhere at once will take companies far. Organizations should focus on two to three markets that have historically proven stable for them and evaluate either five to 10 products or three to five services that have consistently sold well in these markets. Leadership should focus its energy on improving marketing approaches and sales strategies, transforming them into stronger revenue generators. This will serve businesses not just now, but well into the future.

Contact Gavel International to be inspired by solutions that connect and engage your people. 

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SOURCES:

1. https://www.economicpolicygroup.com/publications/business-backs-education-report-launch/

2. https://opportunity.businessroundtable.org/ourcommitment/

3. http://dx.doi.org/10.1080/23340460.2020.1789430

This article was last updated on July 11, 2025

Jim Bozzelli
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