The Business Case for Social Impact

Alicia_Schmidt — Thu, 20 Feb 2025 22:34:36 GMT

Leveraging your company's resources to be a force for good isn't just good karma – it’s a strategic advantage. Consumers, employees, and investors are increasingly demanding that businesses drive social impact. Companies that commit to philanthropy, sustainability, and corporate giving experience greater brand loyalty, stronger financial performance, and a more engaged workforce.

Numerous studies have shown that a commitment to doing good builds customer and investor trust, differentiates your company in a crowded market, turns casual customers into loyal fans, and helps you attract and keep top talent (don’t take our word for it, check out the data below):

Increase Shareholder Value

73% of investors believe efforts to help improve society and the environment contribute to return (AFLAC CSR Survey 2019).

Secure the Economic Future

98% of investors think public companies are urgently obligated to address one or more societal issues to ensure the global business environment remains healthy and robust (2023 Edelman Trust Barometer).

Increase Growth

Companies with high employee engagement are 21% more profitable than ones with low engagement.
Appeal to Consumers
77% of consumers are motivated to purchase from companies committed to making the world a better place (AFLAC CSR Survey 2019).
88% of Americans approve of companies that have a positive impact on their communities (2023 The Shifting Politics of Doing Good in America is GSG’s tenth annual Business & Politics Report).
77% agree that corporations have a responsibility to bring about social change on society’s most important issues (2023 The Shifting Politics of Doing Good in America is GSG’s tenth annual Business & Politics Report)]

Attract and Retain Top Talent

69% of workers say having societal impact is a strong expectation or deal breaker when considering a job (Edelman Trust Barometer 2023).
53 % of Gen Zers say it is important for their work to have meaning (2022 Benevity Talent Retention Survey).
Companies see a 52 % lower turnover among the newer* employees who participate in their corporate purpose programs (2022 Benevity Talent Retention Survey).

Increase Employee Productivity and Wellness

90% of employees who work at companies with a strong sense of purpose say they’re more inspired, motivated, and loyal (PN Purpose Tracker 2020).
79% of US adults report lower stress levels due to volunteering.
Individuals who engage in volunteering regularly report lower levels of depression, greater life satisfaction and a heightened sense of purpose (PN Purpose Tracker: Employee Perspectives on Responsible Leadership During Crisis 2020).

Gallup’s engagement research (2024) shows that having an engaged workplace:

Increases productivity by 14%
Increases customer ratings by 10%
Increases sales by 18%
Increases profitability by 23%

Conversely, Gallup’s research also finds that employee disengagement costs companies $8.8 trillion annually — or about 9% of global GDP.

Meet Employee Expectations for Wielding Trust and Influence

86% of respondents said they expect CEOs to lead on societal issues (2023 Edelman Trust Barometer).

Take Action with Pledge 1%

Join Pledge 1%, a global movement helping businesses make a difference by donating time, product, profit, or equity. Over 60 unicorns and thousands of companies worldwide have already committed to creating a more inclusive, equitable, and sustainable future.

Ready to build a purpose-driven brand? Take the pledge today!

article The Business Case for Social Impact in Pledge 1% Overview