Leading with Social Impact in 2025: Mastering the Art of Action Over Words

Workers, consumers, and investors will soon demand evidence of a company's impact on society. Superficial actions from businesses will no longer be tolerated, and showing true commitment will become essential.

The social and environmental repercussions of the recent shift in political power have already begun to materialize. As Daryl Brewster, CEO of CEO Chief Executives for Corporate Purpose (CECP), noted, "In January 2023, three out of four leaders would have said their companies were supportive of DEI. A year later, it was one out of four, and three out of four were saying, my number one job is explaining what this is all about, and how it relates to the business."

The presidential campaign of former President Donald Trump essentially served as a referendum against DEI and ESG. During the campaign, major corporations such as Walmart, Boeing, Ford, and Lowe’s announced plans to abandon or scale back their DEI-related initiatives. BlackRock, the world's largest investment firm, drastically reduced its support for shareholder proposals addressing environmental and social issues. Project 2025 calls for the end of American climate leadership on the international stage. Companies have been under constant scrutiny for their inability to turn social and environmental pledges into tangible results.

Research conducted in 2024 revealed the gap between corporate intentions and social impact. According to the 2024 Edelman Trust Barometer, 63% of respondents believed businesses were failing to live up to their social impact commitments. Over seven in ten employees surveyed believed that there was a discrepancy between what their company claimed about social responsibility and how the company acted, as reported by Accelerating a Just Transition, a new report from Globescan and Ashoka.

Despite predictions of a retreat from progressive social change, some corporate and civic leaders view this as the beginning of a new era for business and social impact. One characterized by companies taking meaningful steps to improve employees' and citizens' lives. "What's coming is an opportunity for us to innovate in the CSR, ESG, and DEI space because this is the first time we've really been put to the test, challenged in our thinking about something that affects so many people," said Muneer Panjwani, CEO of Engage for Good.

To gain a clearer idea of what the future holds for business and social impact, I consulted with Brewster, Panjwani, Ryan Gellert, CEO of Patagonia, and Dave Stover, CEO of Ben & Jerry’s. Their collective insights led to the identification of 10 priorities that can help more companies walk the talk and become leaders in social impact.

"When a company legally binds itself to its stakeholders—including employees, communities, customers, suppliers, and the environment—'walking the talk' becomes inherent," said Gellert. This involves incorporating social impact into every aspect of a business, including employee engagement, supply chains, product development, and material usage. Panjwani emphasized the importance of companies being smarter about integrating social impact into their operations, using Macy's Mission Every One approach as an example of a company that involves every leader and employee in social impact.

In today's politically charged climate, employees and consumers have taken opposing sides regarding which populations should be prioritized. Panjwani suggests continuing this work but presenting it truthfully and inclusively. "One of the ways people feel excluded is when they feel their identity and lived experience don't matter," said Panjwani. "We need to address priorities that are important to all political sides, such as supporting workers, providing a safe working environment, and ensuring fair wages," said Brewster.

CECP has 14 million employees across its members' companies. Listening to employees and using their input is one of the most challenging things for companies to do, but it's also an opportunity to walk the talk, according to Brewster. "The time is ripe for leaders to engage with and support their employees because they may not find people on the other side of this, or if they do, they'll be more expensive," said Brewster.

Businesses require guidance on how to speak about their actions in real-world terms that can unite people. "What words can be used across your business and with your customers, so they understand what you're doing and how you're showing up authentically?" said Brewster. "Talk about clean air, talk about reducing your insurance costs, talk about real things that people can understand," said Panjwani. He also noted that companies struggle with framing their stories and that DEI work needs to be reexamined with a more inclusive language.

Partnering with nonprofit organizations is a method to boost societal change."A straightforward approach to guarantee your donations are reaching legit organizations is by signing up for a group like 1% for the Planet. Individuals can likewise look into Patagonia Action Works, our device to connect individuals with social organizations dealing with the most serious issues confronting our world today," stated Gellert. "Whenever organizations collaborate with a nonprofit partner, their brand reputation improves because they gain access to the organization's knowledge, network, and the communities they serve," said Panjwani.

Support Renewable Energy

Gellert suggests three ways to approach this issue. "First, businesses can work towards integrating solar and wind energy into their energy sources. Secondly, they can examine their financial operations to ensure their financial institutions are not backing extractive industries contributing to the climate crisis. Lastly, they can support policies that promote renewable energy at the local, state, and federal levels," stated Gellert.

Understand the Long-term Consequences of Regulation

Gellert believes we are in an era of deregulation that could prioritize short-term profits over the planet's long-term health. "As business leaders, we have the choice to act in the planet's best interests and keep our environmental commitments, regardless of whether the government requires it or not," said Gellert. "Businesses have a voice, not only through their actions but also through lobbying, to show support for the planet," said Gellert.

It's important to shift away from individual stories and use data to prove that a business has made a positive impact. "For instance, if a company is focused on fair hiring practices and employee equity, the benefits are measurable," said Panjwani. "Diverse representation in companies leads to increased innovation, creativity, and employee retention," said Panjwani. Companies can use frameworks from the Global Reporting Initiative (GRI) and the Sustainability Accounting Standards Board (SASB) to evaluate performance using standardized metrics. AI is also creating new opportunities for businesses to track progress and share insights with stakeholders in real-time.

Prioritize Actions Over Disclosure

Disclosure is essential in many industries and jurisdictions, but it does not necessarily lead to social impact. "In fact, it can even hinder progress if it diverts resources from implementing programs," said Brewster. "Some companies may choose to pay fines instead of implementing the necessary changes," said Brewster. "To truly walk the talk, companies should prioritize action over disclosure."

Involving stakeholders, including those with lived experience, in setting priorities and solutions is an effective way to create authentic social impact. "For example, IKEA's "Better Living" initiatives involve collaborating with local communities to promote sustainable living practices while driving product innovation," said the author.

Dave Stever, CEO of Ben & Jerry's, shared his plans for how the company will be walking the talk in 2025. They embody the principles outlined above.

"To uphold our values at Ben & Jerry's, we must embed them into every aspect of our operations and supply chain, standing unapologetically for equity, climate justice, and human rights. In the current climate, there is increased pressure on businesses to tone down their voices, but it is in these moments that our voices matter most. Remaining true to our principles means fostering transparency, amplifying marginalized voices, and aligning our business practices and three-part mission with the change we seek. At the heart of this commitment is courage—courage to take risks, challenge systemic inequities, and innovate not just for growth but for good," stated Stever.

"For 25 years, I've urged major corporations to have meaningful social impact, but the results are not satisfactory. Despite a clear business case for social impact, very few corporations have gone beyond trying to get noticed for doing the bare minimum. This cannot continue. CSR, DEI, and ESG become obsolete in 2024, and there is a new imperative for businesses: to prioritize social impact over greenwashing and social washing and to demonstrate authentic action by walking the talk," said the author.

"As business leaders, we must recognize that the climate crisis should not be reduced to a marketing opportunity. So, how do we walk the talk in business when it comes to societal issues and environmental responsibility? We need to commit and take a step forward," said Gellert.

"As we navigate 2025, a year marked by political and social currents, companies must commit to being more than profit-driven entities; we must be stewards of progress," said Stever.

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In the post-Trump era, businesses are under increased scrutiny for their social and environmental impact, with only 25% of leaders claiming their companies are still supportive of DEI, according to a 2024 study.
Companies like Patagonia, led by CEO Ryan Gellert, advocate for incorporating social impact into every business aspect, from employee engagement to material usage, to truly walk the talk.
Dave Stover, CEO of Ben & Jerry’s, emphasizes the importance of prioritizing actions over disclosure in demonstrating social impact, stating that truly committed companies should prioritize implementing change instead of just disclosing it.
Engage for Good CEO Muneer Panjwani suggests that companies utilize simple, relatable language to discuss their social impact actions, focusing on real-life impacts such as clean air and fair wages.
Patagonia supports grassroots social impact groups through initiatives like 1% for the Planet, which helps ensure donations reach legitimate organizations and boost societal change.