21-05-2025
Corporate Social Responsibility Is Adapting, Survey Reveals Key Trends
Investment in corporate social responsibility is facing a fork in the road. After five years of increasing investment, corporate leaders are confronting external pressures to step back from politically charged social issues, including diversity, equity and inclusion, reproductive rights, climate change, racial justice, human rights, and economic sustainability. Will corporate leaders retreat from CSR in this challenging environment?
New data reveals that investment in CSR continues to thrive, while adapting strategically to external demands. The findings were released this month in the 2025 State of Corporate Purpose report by Benevity Impact Labs, based on a survey of over 500 corporate impact professionals from a range of company sizes, industries and regions. The report highlighted three key trends in corporate social responsibility initiatives.
In the Benevity survey, 92% of corporate impact professionals said their organizations are continuing to invest in CSR because it's good for business. Specifically, 88% said that investment in CSR was future-proofing their business when it comes to talent acquisition and retention, customers and regulatory readiness. According to the Benevity survey, leaders recognize that corporate silence 'creates brand risk.'
'As leaders navigate the complexities facing business today, it remains clear that leading with corporate purpose is not just a moral imperative, but a strategic advantage,' said Jenna Moore, senior manager at CECP, in a 2025 Corporate Purpose report. The CECP report found that companies with an explicit corporate purpose generated 58% higher revenue than those without a corporate purpose in 2023, based on the S&P Global 1200.
Corporate impact professionals also understand that workers expect companies to play a role in driving social change. Among working adults, 60% say large companies should take a stand on important societal issues, according to JUST Capital's 2024 Americans' Views on Business Survey, based on over 3,000 responses. Workers' desire for corporate activism is particularly strong on women's health and reproductive rights.
This data underscores that backing away from investment in CSR would have meaningful business costs, which has tempered a large-scale retreat.
Employee engagement in the U.S. hit a 10-year low in 2024, with only 31% of employees remaining engaged in their jobs, according to Gallup data. This equates to about 3.2 million employees who have become disengaged since 2023, and 8 million fewer engaged employees since 2020. Increasing employee detachment is particularly high among workers younger than age 35.
The Benevity report found that two CSR components have a particularly robust return on investment for employee engagement: volunteer opportunities and employee resource groups.
Despite the current political climate, corporate volunteering has surged since 2021. Companies that actively promote corporate volunteerism see greater participation and impact than companies that only provide opportunities for employees to volunteer on their own.
Employees who participate in corporate purpose programs through volunteering are 24% less likely to leave their company, based on a Benevity 2022 talent retention survey of over 400 companies. The talent retention benefits of participating in corporate volunteerism are even higher among new employees who have been with a company for 2.5 years or less, who have a 52% lower turnover rate.
In a 2024 study of 90 different workplace interventions to promote mental health, volunteering was the only activity that measurably improved employee well-being and belonging. Corporate impact professionals recognize this link. In the Benevity survey, respondents' top three reasons for continued investment in volunteer opportunities included: employee engagement; increasing community impact; and creating culture and connection.
While volunteering continues to be a core feature of CSR programs, some companies are adapting their volunteer focus to drive greater business value. For example, some companies are prioritizing 'high-value volunteering' that is linked to specific company pillars. Companies are also focusing more on skills-based volunteering, team volunteering, local efforts, and deepening the connection with the nonprofits they support.
The other CSR component that is strongly linked to employee engagement is employee resource groups. Corporate impact leaders have identified ERGs as 'low-risk, high-trust bridges to inclusion and connection,' even amid 'peak DEI polarization,' according to the Benevity 2025 Corporate Purpose report.
Among the corporate impact professionals surveyed by Benevity, 92% said that ERGs continue to be viewed positively by leadership, and 91% said that ERGs are an important part of their organization's value proposition.
As trust in institutions declines, leaders recognize the importance of ERGs for promoting employee connection and representation. Among the corporate impact professionals surveyed, 87% described ERGs as a trusted source of information within their organizations.
Investing in CSR in the current political climate poses both bigger risks and bigger opportunities. Among corporate impact leaders in the Benevity survey, 91% said that the current moment requires greater corporate courage, while 80% simultaneously felt the need for greater caution.
'This year's data reveals a deep tension in the corporate purpose space—one where CSR leaders are clear on the business value of their investments but are struggling with how to execute it to its maximum potential in a charged environment,' said Sona Khosla, Chief Impact Officer of Benevity and Head of Benevity Impact Labs, in a May 14, 2025 statement.
As a result, corporate social responsibility work is becoming more business-aligned and more outcomes-oriented. In the Benevity survey, 91% of corporate impact leaders said they are making sure that their CSR programs support their strategy values.
Companies are also prioritizing communications on social impact, rather than specific programs. For example, 70% of the corporate impact leaders said they would be quieter about their DEI and climate change initiatives, but they will still be doing the work.
While some companies are adjusting their language or restructuring their programs, 92% of respondents said that DEI remains important regardless of legislative changes or public sentiment. And 42% said their companies had increased resources for DEI over the last year.
'Leaders across the board are adjusting the way they talk about corporate impact. They are still doing the work but are adapting their narratives to meet the moment and working more cross functionally to do so,' said Khosla. 'In 2025, corporate communications will be a key partner for CSR teams. Two-thirds expect to engage with corporate communications teams more, and 30% expect to do so a lot more.'
