By: Daryl Brewster, CEO, CECP
Companies are operating in a volatile, uncertain, complex, and ambiguous (VUCA) world. The world is changing fast. People are frustrated. Societal tensions and expectations surrounding corporate leadership are mounting, including accountability, trust, and resentment. Citizens voted in new administrations in the U.S. and beyond, and in some cases, taken concerns into their own hands.
The coming year is the time for corporations to put their corporate purpose into bold action. Why? Companies have the scope and scale to deliver as a significant employer, supply chain engine, and social impact partner with society. In fact, CECP was founded because corporate leaders saw that the disinvestment in local operating communities while globalization grew was a false promise of prosperity. Businesses of all sizes contribute significantly to the U.S. economy, with private sector businesses alone collectively representing over 87% of U.S. GDP. But sharper tools are needed to address this VUCA world—such as vision paired with a plan of action, methods to listen and respond to stakeholders, and metrics to maintain accountability. And it all starts with purpose.
What does authentic corporate action look like? Leading companies will succeed both economically and in rebuilding trust by increasing business and societal value. The four areas for companies to focus on in 2025 to deliver a return on purpose include:
Focus on Sustainable Value with a Clear PurposeDrop the Labels, Do the WorkAmp up Investments in Local CommunitiesEngage with Employees by Tapping into the Total Talent Pool
Focus on Sustainable Value with a Clear Purpose
Investors must sift through thousands of data points simply to understand a company’s future plans and how it is addressing risk. We know from Investing in Society that in 2022 only 55% of Fortune 500 and 73% of S&P Global 1200 companies had net-zero targets. To authentically communicate commitment, companies can increase their reporting in these areas. And investors want to hear this information directly from the CEO. By integrating corporate purpose into their reporting and strategic frameworks, CEOs can authentically demonstrate how their companies are addressing short-term challenges while advancing long-term societal and financial goals.
Chief Executives for Corporate Purpose®’s (CECP) Giving in Numbers™: 2024 Edition found almost all of the surveyed companies reference applying their corporate purpose as they made business decisions outside of social investments. While this suggests an integration of corporate purpose into the company’s daily operations, 92% of companies also reported that their leadership referenced their purpose as they made social investment decisions such as grantmaking, strategy, and the development of focus areas. This is why we are continuously supporting companies with developing their Integrated Long-Term Plan Frameworks to help CEOs and CFOs communicate long-term plans and sustainable business strategies.
At CECP’s recent CEO Investor Forum, leaders shared their strategies for material metrics and long-term value creation. “In the future, every single workflow will have AI embedded into it, and that’s the only real way of creating value,” said Rohit Kapoor, Chairman & Chief Executive Officer, EXL. “AI by itself does not create value. AI embedded into the workflow creates value. If you can combine deep knowledge of your clients’ business models along with a strong technical expertise in data and how to embed AI into the workflow, that is a very powerful equation, and that’s what our strategy is built on.”
Come to CECP for
Define your corporate purpose: Leading CEOs and CFOs are sharing their long-term visions. Aradhana Sarin, CFO,; John Murphy, President & CFO, The Coca-Cola Company; Gil Quiniones, President & CEO, ComEd; and more, joined the ranks of nearly 100 leading CEOs and CFOs who have presented their Integrated Long-Term Plans to an audience of institutional investors, representing trillions of dollars in assets under management.Integrated Long-Term Disclosure Analysis: a confidential tool intended for companies to
gain insights into how their public-facing reports and disclosures align with the information that is most important to long-term institutional investors.Strategy and Impact Roundtables: Driving Climate Action: Strategies for C-Suite Commitment and Internal Alignment.
Drop the Labels, Do the Work
The purpose of a corporation is to conduct a profitable, lawful, ethical, and sustainable business, creating value over the long-term, in consideration of its stakeholders. It articulates the impact a company aims to have on its stakeholders, society, and the environment while fulfilling its business objectives. A well-defined corporate purpose aligns a company’s values, strategy, and actions with long-term goals that serve both economic and social interests.
In our increasingly polarized world, what to call such corporate purpose efforts—especially with threats on terms such as Environmental, Social, Governance (ESG) and Diversity Equity and Inclusion (DEI)—remains a debate. For instance, 18 percent of CECP Pulse Survey respondents reported that their company has chosen not to speak up publicly in support of ESG to avoid drawing attention from critics, while continuing to invest in ESG strategies because they view it as beneficial for the company and its stakeholders.
These attacks on language used demonstrate the challenges that acronyms and labels carry when there may not be an understanding behind them. CECP research shows that companies are continuing to pursue their strategies and underlying goals—like meeting the European Corporate Sustainability Reporting Directive (CSRD)—although how they talk about it may evolve. The same CECP Pulse Survey conducted about the backlash against ESG and the challenges of measuring its core areas found that a quarter of the respondents indicated that the backlash has not impacted their strategies. Companies have invested too much to pull back and know the business value of staying committed to these promises. “We must continue to break this mistaken paradigm that purpose and profit are at odds. They go together,” said Sara Armbruster, President & CEO, Steelcase Inc. “The more we can put those two things together and thread the needle in harmonious ways – that’s when the magic happens.”
But concurrently, diversity, equity, and inclusion (DEI) is under attack by activists, with many companies re-evaluating the legal and political risks associated with programs to bolster historically underrepresented groups. A recent CECP Pulse Survey found a third of respondents have changed the name of their DEI programs or departments in the last two years, suggesting a movement toward reevaluating, or potentially renaming and clarifying the outcomes of these initiatives to better align with evolving external developments and stakeholder expectations. We advise discussing responsible business initiatives in clear language and less business jargon, such as explaining efforts to make their people feel welcome, included, and connected.
But let’s not confuse external-facing tactics like renaming with strategy, as many companies are still actively doing the work and recognize these programs are critical drivers for innovation, financial performance, and market reach. A corporate focus on belonging can be expansive and include workplace safety, career development, workplace flexibility, and fair management. For example, Applied Materials Momentum Fund, provides women majoring in engineering with timely financial support to cover unexpected expenses and helps ensure they complete their bachelor’s and master’s degrees. This is a time for companies to realize the substantial benefits of diversity and economic inclusion in creating a competitive edge., provides women majoring in engineering with timely financial support to cover unexpected expenses and helps ensure they complete their bachelor’s and master’s degrees. This is a time for companies to realize the still substantial benefits of diversity and economic inclusion in creating a competitive edge.
Come to CECP for:
Corporate purpose communications audits:To determine if the company is communicating its corporate purpose in a way that breaks through and highlights what it does best.Developing Business Champions toolkit: A toolkit for CECP-affiliated companies to engage internal audiences such as the C-Suite, internal communications, and middle managers.Purpose resources and networks for CEOs: Board of Boards, CEO Roundtables, and the CEO Purpose Weekly bulletin.
Amp up Investments in Local Communities
In the coming year, corporate investments in local communities will reflect evolving priorities shaped by societal and policy shifts. As companies achieve lower taxes and likely greater profitability, they may face rising expectations to demonstrate returns on their broader societal contributions. The Median Total Community Investment (TCI) for all companies participating in CECP’s Giving in NumbersTM Survey increased 2% between 2021 and 2023 to US$22.9 million, which includes direct cash, foundation cash, and non-cash, such as product donations or pro bono services. And community investment as a percentage of pre-tax profit increased 25% between 2020-2022, bringing the 2022 median just under 1% of pre-tax profit being allocated to community investment.
Given a likely 5% tax cut, companies can build trust among their stakeholders by being transparent with the way they will invest that windfall. We encourage companies to do a wide variety of things to invest in their companies and stakeholders, including seeking to allocate a minimum 1% of pre-tax profit—CECP’s long-standing industry standard—to address pressing community and social issues. To be in the top quartile of companies, companies must double that standard to reach above 2% of pre-tax profit.
Leading companies are strategic about their investments and have moved away from scattered charitable grantmaking toward investments that deliver measurable social and economic impact. Median investments in the areas of Community and Economic Development increased by 87% between 2021 and 2023. This includes contributions to community development (e.g., aid to Black-owned businesses and economic development councils), housing and urban renewal, and grants to neighborhood or community-based groups—including anchor institutions. This approach emphasizes long-term community benefits, often aligning with business goals such as workforce development or market expansion. These investments have not only addressed immediate challenges but have also positioned businesses as critical partners in fostering sustainable economic growth.
Come to CECP for:
Consulting and benchmarking: on sustainable business, communications, giving/volunteering, employee engagement, and belonging in support of company strategy and corporate purpose questions.Corporate trend data on societal and community investment: Over 23 years, CECP has created the largest dataset on trends in the industry, shared by more than 600 multi-billion-dollar companies, representing more than $439 billion in corporate social investments over that time span:ConveningsCECP Summit: An experience that brings together 200+ corporate leaders who drive social strategies at the world’s largest companies. This year’s Summit will be held in Boston on May 19-21 under the theme Unleash the Power of Purpose. This vital corporate network will engage and learn together, navigating an agenda that delivers powerful insights on investing in communities and working together within their industry.
Engage with Employees by Tapping into the Total Talent Pool
Business owners whose companies rely on immigrant workers are processing what the next Administration could mean for their future, especially for frontline workers. Key changes anticipated include stricter visa processes, heightened enforcement, and possible curtailment of programs like DACA, which has allowed many immigrants to work in the U.S. How should companies more readily engage with their employees while keeping this in mind?
One of the ways companies are mitigating these challenges is by focusing on retention strategies. Employers are proactively assessing their workforce, expanding analysis of a robust pipeline of talent needed for the jobs of the future, and reskilling current employees to stay up to date. Pariveda believes Employee Stock Ownership Plans (ESOP) are a powerful way to support employee engagement by enabling employees to own part, or all, of the company they work for. Fidelity Investments® is working to tailor engagement and charitable giving for the multigenerational workforce. And AI is empowering the workforce by saving time and enabling better decisions. Amit Bajaj, President – North America, Tata Consultancy Services said, “TCS has carved its place as a pioneer of emerging technologies like AI, which is disrupting industries globally—and we are set to create one of the largest AI-ready workforces in the world.” By fostering a sense of ownership and investing in the development and upskilling of talent, employers will increase job satisfaction and career growth opportunities that boost employee morale and retention.
The focus on workforce development fosters a culture of belonging for your employees. Over the next five years, projections suggest that the U.S. will continue to diversify, with younger generations leading the way. Approximately 45% of Gen Z who were eligible to vote in 2024 are individuals of color. And as of this decade, white men now make up about 20% of U.S. college graduates, where in the early 2000s, white men accounted for approximately 30–35% of college graduates. These shifts have implications for meeting specific workforce needs, as the nation adapts to an increasingly racially and ethnically diverse population.
Come to CECP for:
Advanced Advisories and unlimited Fast-Track Consulting: Using proprietary frameworks
and knowledge, we develop customized advisory projects for companies to build, operationalize, communicate, measure, and report their purpose strategies.Accelerators: on Resiliency in Crises & Disaster Response (January), Innovation in STEM & Workforce (March), and Elevating Employee Engagement (AprilCECP’s Employee Engagement Benchmark and Belonging Benchmark: to create an understanding of how your company compares to peers and then how your company should evolve strategy.
In 2025, businesses have a significant opportunity to demonstrate leadership by aligning corporate strategy with societal goals. But what does this mean for you and how will you navigate the next four years? How will your company step up to meet the needs of your people and communities? How will you leverage this societal role to deliver a measurable return on purpose for your company?
To support these vital societal policies and programs, leading companies will be well served to come together to share the business cases for responsible business and workplaces that care for their people and keep them safe, while allocating at least 1% of pre-tax profit to address pressing community and social issues. These actions will establish trust, create a culture where employees will stay, and meet stakeholder demands, ultimately building resilience for the future.
By focusing on dropping the labels and doing the work, amping up investments in local communities, engaging with employees by tapping into the total talent pool, and focusing on sustainable values with a clear purpose, companies create enduring value that benefits both their bottom line and society. Businesses are key players in shaping a thriving economy and a better world.
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About Chief Executives for Corporate Purpose (CECP)
Chief Executives for Corporate Purpose® (CECP) is the only business counsel and network dedicated to driving measurable returns on purpose. We promote responsible purpose-driven business as it increases customer loyalty, builds employee engagement, improves brand trust, attracts top talent, connects with strategic investors, and contributes to the bottom line.
More than 200 of the world’s leading companies seek to improve their return on purpose through access to CECP’s solutions in research and insights, strategy and benchmarking, and convening and communications. With our companies, we harness the power of purpose for business, stakeholders, and society.
For more information, visit http://cecp.co.