Today’s political and economic climate is putting more of the spotlight on companies: how they operate, how they hire, where they work, and how they give. This is requiring many business leaders to rethink how they show up for their customers, employees, stakeholders, and communities.
For many, past strategies for sustainability, ESG, DEI, and other corporate impact initiatives are no longer resonating, but these commitments have become increasingly important, even if expressed in new ways.
Despite the changes happening around us, there is a evolution happening within corporate impact and outside of the spotlight that is redefining how companies – their teams, products, and assets – can make a positive difference in today's constantly changing and increasingly uncertain world. This is creating new pathways for companies to grow and is providing business leadership with a remarkable opportunity to lead with their beliefs, values, and vision for the future.
- The lexicon of sustained impact
- Digging deeper into our values
- Continuing commitments to communities in need
- Redefining what it means to lead
- Strategies to do good while doing business
- Integrate Impact Values into Core Business Functions
- Invest In & Celebrate Your Communities by Adopting Issue- or Place-Based Approaches
- Build Cross-Functional Accountability
- Strengthen Internal Measurement and Materiality
- Partner Strategically and Engage Employees Authentically
- Re-envisioning, not retreating
We first convened leaders of the Pledge 1% community in March 2025 to understand their perspectives, challenges, and responses to the political and economic changes following the US election. This same group of companies met again in June 2025 to further discuss how they have adapted their impact strategies and continued to support their ecosystem of partners, employees, shareholders, and customers in today’s climate.
During these convenings, we learned that there are a number of driving forces causing companies to reevaluate and revise their corporate impact programs. These include (among others):
- Changes in political tone and climate: Executive orders from the current administration that are targeting DEI programs in federal agencies and encouraging private sector rollbacks and are putting at risk many government contracts.
- Economic uncertainty: Changing decisions around global tariffs, US trade agreements, and other economic policies are heavily impacting investor decisions and determining how US-based corporations operate.
- Reputational concerns and stakeholder pressure: In an increasingly polarized environment, companies are balancing demands for corporate impact leadership with the need to avoid politicized backlash—making strategic positioning more critical than ever.
- Regulatory uncertainty: Delays in ESG-related disclosure rules in the US and EU have introduced ambiguity, prompting companies to take pause in releasing reports as they closely track peer activity and regulatory developments.
These conditions are constantly evolving, and yet one force has remained constant: companies’ unwavering commitment to make a difference.
Based on current news and research, as well as feedback and ideas shared during convenings with Pledge 1% Builders, we explore a few key strategies that businesses are adopting to continue to have a positive social impact in our increasingly challenging world.
We recognize that current events are impacting this space daily, but so are business leaders, who are choosing to lead with their values. While no one can be certain of what the future holds, we can share key learnings and strategies that are helping companies be a positive force for change.
The lexicon of sustained impact
Diversity. Inclusion. Sustainability. Social good. Terms like these are being questioned and even removed from the current lexicon, but that does not mean the values are being deprioritized. In fact, many companies are doubling down on how they engage different customers and employees; they are just using different terminology and strategies to do so.
Many companies are doing this by broadening their impact themes to:
- Include more widely recognized social causes and actions, which benefit different demographics of beneficiaries across communities
- Use words like “belonging” and “equality” to celebrate their values
- Focus on “employee well-being” and “employee experience”
- Launch new internal “Inclusion Groups” or “Employee Communities”
- Reframing their ESG goals under their sustainability interests and business goals
- Among other things
The data overwhelmingly shows that businesses are better when they pay attention to diversity and inclusion – when they prioritize strategies to reach different customers, employees, and stakeholder groups. Sustained commitment, rooted in purpose, not performance, has become a practical approach for many—allowing companies to protect impact efforts while minimizing external risk.
The words have changed. Our actions have not.
Digging deeper into our values
There is a myth that corporate impact has taken a backseat. It has not. The increased political pressures and scrutiny around corporate social initiatives has instead resulted in many companies integrating these values even deeper into their core operations. This is enabling companies to strengthen (not suppress) their corporate impact strategies and to ensure that their programs are sustainable, secure, and resilient to future challenges.
A new emphasis on “inclusive growth,” for instance, is providing companies with more opportunities to incorporate values like diversity, inclusion, and sustainability into every aspect of their business and to develop new strategies to meaningfully engage employees and customers across different communities. This includes consolidating DEI functions into broader HR or "people experience" teams, or reassessing how diversity goals should be embedded into performance metrics.
To ignore social diversity is to ignore our reality – something most companies cannot afford to do. Instead, many companies are restructuring their operations and goals to stay even more relevant, responsive, and representative of the communities they employ and serve. This is both good for business and good for the world.
Continuing commitments to communities in need
In a time when government aid is getting cut and traditional civil society infrastructure is struggling, corporate giving has not stopped. Companies are stepping up in new and creative ways to more effectively distribute financial resources back to the customers and communities they care about.
For some companies, this involves tightening grantmaking criteria—especially for nonprofit partners whose missions are explicitly aligned with identity-based causes. In some cases, legal teams are now reviewing grantee language to ensure that terms like “equity” or “anti-racism” do not pose reputational or compliance risks for the company. Organizations are reframing programs in more general terms like “future workforce development” or “community empowerment.” This is enabling many companies to continue their commitment to diverse organizations, despite increased public scrutiny around certain social causes.
Redefining what it means to lead
People around the world are looking for stronger leaders; for clarity, for consistency, for hope. Today’s business leaders have an incredible opportunity to redefine what it means (and what it takes) to lead, starting with their corporate culture.
Employees are navigating an uncertain economy, a shrinking job market, new foreign and domestic policies, and unprecedented changes at home and in the office. This is being felt across industries and generations, with some corporate impact leaders reporting that Gen Z employees are more likely to treat work as a job—not a community hub or moral platform. As one individual put it: “We used to think that workplaces were becoming the new third space. Now people are asking, ‘Why should I go above and beyond for a job that might cut me tomorrow?’”
In an era where workplace dynamics and employee expectations are evolving, a strong corporate culture can make all of the difference when it comes to engaging teams and promoting a healthy bottom line. Today’s business leaders are using this moment to define their culture and stand out to employees, customers, and shareholders alike. Employee engagement and community giving programs are proving to be successful strategies to boost morale and foster connections across teams and customers. These activities are driving employee retention, ethical decision-making, performance, and long-term business success. At a time when the world is feeling more and more polarized, companies can uniquely provide their teams with a positive space to collaborate, learn, and thrive.
Strategies to do good while doing business
The good news?
Companies are still giving, and corporate impact leaders are finding new ways to integrate their impact programs into the core of their operations. This is ultimately leading to stronger, more sustainable programs that could transform how companies shape our world for the better.
Now is the time to lead.
Businesses large and small — and across every industry — have an opportunity to lead by example and leverage their assets – their team, profits, products, equity, brand, and more – to do good.
The strategies outlined below are being shared to help all types of businesses maximize their ability to serve their customers, teams, and communities in today’s environment. Every business – large or small – can make a difference and collectively, we can form a movement that redefines corporate leadership for generations to come. We hope these strategies will help your organization realize their ability to lead in this moment, and join us and thousands of others in redefining how companies can positively shape our world, all while navigating today’s evolving dialogue, risks, and political changes:
Integrate Impact Values into Core Business Functions
In today’s climate, employees and consumers alike are prioritizing brands that align with their values. Data repeatedly shows that companies integrating impact goals into their business and operations are recruiting and retaining better talent, creating stronger brand positioning with customers, and maintaining a healthier bottom line.
By integrating company values into all aspects of your core business functions, you can seamlessly work towards your impact goals while building stronger teams and connecting your product and services to purpose—a win-win for you and your stakeholders.
Invest In & Celebrate Your Communities by Adopting Issue- or Place-Based Approaches
Reframing your impact narrative by focusing on the communities that are important to you as a business can engage consumers and investors, and open the doors for you to drive equity outcomes. This could be your city, state, or town, or a new market you are looking to expand into. You could also focus on broadly resonant themes like mental health, education, food insecurity.
Build Cross-Functional Accountability
Restructuring your impact program offers a great opportunity to think about internal ownership and how your broader team can champion and be a part of your impact goals. Consider integrating impact KPIs into different departments, or establishing internal councils or committees that allow for shared ownership models to drive impact decisions. This can be a great way to promote cross-functional collaboration – all while proactively managing risk.
Strengthen Internal Measurement and Materiality
Use data, materiality assessments, and internal dashboards to inform decisions around your community investments and/or internal policies and programs. You can use this moment to connect your impact goals to business KPIs and to more deeply understand their impact on your financial, marketing, hiring, and other organizational outcomes.
Partner Strategically and Engage Employees Authentically
The best news about enhancing your impact program? You never have to do it alone! There are many third-party intermediaries and platforms to help drive your funding, employee giving, product donations, and broader program delivery.
This includes solutions to help streamline employee engagement, including pro bono giving and matching funds.
Ultimately, your impact program offers an incredible opportunity to engage your team (virtual or remote). You can always tap into your talent for guidance and ideas about the issues that matter to them the most. By including them in your planning process, and by offering VTO days, employee volunteer events, you can significantly strengthen your internal culture and provide hope and purpose for your employees, especially in these times of uncertainty. These can lead to increased employee retention, productivity, and workplace satisfaction. Use your impact program to show up for your team, so they will continue to show up for you.
Re-envisioning, not retreating
Corporate leaders are standing at a critical juncture. They are being compelled to address new language, restrictions, and pressures around how their business impacts the world. At the same time, many are continuing to leverage their talent and resources to innovate and create new opportunities for corporate philanthropy.
Companies are stepping up in new and more integrated ways. They are positioning, measuring, and aligning their impact programs with their business goals, and the companies that are succeeding – that are attracting customers, engaging team members, and meeting stakeholder expectations – are the businesses that are adapting without sacrificing their culture and values.
Re-envisioning your corporate impact goals and initiatives in today’s environment demands nuance, strategy, and discretion. It is also sparking more creativity and leadership around approaches that will ensure long-term corporate impact for years to come.
Pledge 1% can help you navigate the trends in corporate impact by providing you with a flexible framework and practical resources to build, sustain, and continually evolve your impact program. You can join the movement for free and access more examples and tools at www.pledge1percent.org.
