Five Notable Trends in Corporate Social Responsibility (CSR) to Keep an Eye on in 2025
The commencement of a new year brings forth a myriad of obstacles for corporations, urban areas, and nations. Upcoming political elections and right-wing movements may disrupt long-standing business practices that several business elite have adhered to for years.
Here are some noteworthy trends in corporate social responsibility (or corporate citizenship) that merit scrutiny in the upcoming period. These trends have been gradually gaining traction over the past four years, but 2025 is likely to witness an exponential surge that aligns with the evolving political landscape.
Promotion of "belonging" over DEI. Multiple organizations and institutions will continue to champion diversity, equity, and inclusion (DEI) initiatives as a competitive edge or business necessity. Conversely, others might follow the trailblazing examples of Walmart, John Deere, and prominent universities (such as the University of Michigan, which eliminated diversity statements in faculty hiring and promotion) by de-emphasizing or ceasing DEI efforts, which some view as overly "woke." Despite seemingly safe actions like sharing employment data with the Human Rights Campaign, a nonprofit championing corporate LGBTQ policies, these endeavors may face scrutiny. Listen for executive leaders and companies emphasizing the significance of "belonging" within their teams, families, and enterprises, as advocated by Walmart, which champions "everyone included."
Focus on "security" rather than ESG. While climate change will be managed as a potential threat to business continuity, keep an eye on business leaders committing to treating these risks as equally significant to the safety of their personnel in addition to their business interests. Although some conservatives have downplayed climate change in the past as a secondary public policy concern, a shift in perspective is visible. These conservative voices are beginning to recognize the potential negative impacts of climate change on national security interests (for example, President-elect Trump is considering Greenland and Canada critical to the US national security interests due to the changes in Arctic navigation possibilities). Anticipate companies incorporating such language to emphasize the crucial role of mitigating environmental risks, not only for their business success but also to secure their worker's safety in high-risk geographical areas.
Increased employee volunteering and a decreased emphasis on remote work. As corporations like AT&T and Amazon compel their staff to work from the office four or five days a week, this change will likely revive engagement in volunteer activities that had stagnated during the pandemic. While workers tended to focus on online counseling and technical aid programs for nonprofits and small businesses from their homes, the influx of employees back into offices will spark renewed interest in reintegrating teams and community engagement through local voluntary projects near company facilities.
Increased CEO discretion and less employee activism. During the first Trump administration, CEO activism on social issues peaked as employees demanded their companies stand against conservative opposition to favored programs and causes. However, with the new administration, fewer progressive corporate positions on policy matters can be expected. Several prominent CEOs, such as Jeff Bezos, Tim Cook, and Mark Zuckerberg, are engaged in courting favor with government officials, and executive positions in central government are filled by business leaders. Progressive corporate viewpoints on public policy will thus be muted, and efforts to preserve employee freedom of speech will be channeled into internal collaboration platforms.
Increased corporate sponsorships and fewer philanthropic contributions. Companies have shifted their philanthropic focus away from traditional charities like higher education, arts, and national humanitarian organizations in favor of supporting social justice and environmental organizations over the past four years. Nevertheless, with increased scrutiny of progressive nonprofits at the federal and state levels, anticipate fewer corporate philanthropic endeavors liable to public disclosure and self-dealing rules. Instead, corporations will create sponsorships aimed at supporting small businesses, entertainment venues, sports teams, and commercial ventures that offer merchandising and promotional opportunities, escaping complex reporting requirements.
Although numerous companies will persist in pursuing DEI, ESG, HR, and CSR commitments established over decades, others will innovate and employ new languages to navigate the unique political realities and leadership. However, the specific outcomes of this corporate evolution are uncertain, and navigating the business landscape can prove tricky for the unprepared or oblivious leader.
- In the realm of corporate social responsibility trends, there's an emerging focus on promoting a sense of "belonging" instead of solely focusing on DEI initiatives, which some corporations like Walmart have started to adopt.
- As the political landscape shifts, businesses are likely to place more emphasis on "security" in terms of both employee safety and environmental risks, aligning with the perspectives of conservative voices like President-elect Trump on national security interests.