As leaders navigate the challenges facing businesses today – economic and geopolitical headwinds, shifting regulatory requirements and heightened stakeholder expectations – a throughline is emerging: companies that connect their corporate social responsibility (CSR) programs to their business goals are outperforming their peers. 88% of leaders in the 2025 Benevity State of Corporate Purpose Report say their impact strategies are helping future-proof their business.
In a values-driven market where 82% of consumers say they prefer to buy from brands that align with their own values – embracing purpose is no longer a nice-to-have. Corporate purpose is a competitive differentiator, a unique north star for resilient businesses. These purpose-led companies see five times the compound annual growth rate (CAGR) of the S&P 500 average, according to Jump Associates.
For leaders focused on long-term value creation, the association between purpose and profit is measured in both social impact and business impact. Measuring CSR means understanding the ROI of doing good as a multiplier of performance. It can (and should) be aligned with and connected to the balance sheet.
Connecting corporate purpose to business goals
While traditional CSR outputs like volunteer hours, employee-driven donations, and grants awarded reflect a company’s commitment to good corporate citizenship, they only tell part of a corporate impact story. Brands that successfully link their purpose, values and business goals are uniquely positioned to drive enduring, positive outcomes that benefit society while also driving business performance and strengthening brand trust. Done well and managed over time, CSR can generate enterprise impact that is measurable, sustainable and scalable.
Corporate purpose strategies fuel innovation
With nearly 9 in 10 Gen Zs and millennials saying that a sense of purpose at work is important – and with these generations making up a significant share of the workforce – it’s clear that access to impactful work environments is rising in priority across the labor market.
Meaning and engagement can help foster creativity and fuel experimentation, so it’s not surprising that data from Deloitte shows how paramount purpose is in supporting growth: purpose-led companies have 30% higher levels of innovation. And it’s not a new concept. As far back as 2012, HBR research showed that companies that rank in the top third in terms of corporate social responsibility activities released on average 3 times more new products a year compared with less engaged companies.
What is new is how CSR has become purposefully strategic. Companies that embrace a dual mandate of purpose alongside profit, and embed an enterprise-wide approach to driving impact are better positioned to move quickly, deliver more ideas for new products and services, accelerate time to market and create incremental value for clients, communities, investors and other key stakeholders.
McKinsey research into “innovative growers” shows that the majority of innovative, growing companies achieve total shareholder returns above their industry median – again linking innovation to strong financial performance. By connecting impact program metrics like employee participation and engagement with innovation metrics, like time to market and new product releases, a quantifiable picture of CSR-enabled business impact can emerge.
Social impact investments deliver strong business returns
Benevity research shows that 76% of executives plan to increase CSR investment in 2025. Among those increasing their investments, more than 40% say their organizations are boosting resourcing because investments made in CSR initiatives deliver direct business ROI.
Leading companies are doubling down on purpose for good reason – when impact is prioritized, data shows companies see higher returns. A study from CECP and Fortuna Advisors reveals that high purpose brands posted valuations more than four times higher than low purpose companies, and experienced an almost 20% advantage in annualized total shareholder value during the COVID-19 pandemic.
Additional CECP research shows that companies with a corporate purpose had 58% more revenue in 2023 compared to peers without and 63% higher returns on invested capital.
We’re seeing this play out in real time. When an activist shareholder group urged Costco to evaluate potential business risks posed by its diversity, equity and inclusion (DEI) efforts – they stood firm in their commitment to the programs aligned to their values and rejected the proposal. As a result, they saw their net sales increase 9.1% for the quarter over the prior year and in-store foot traffic grew by 5.7%.
Wells Fargo approaches its philanthropic programs as a strategic lever for both social impact and business value. Through the Wells Fargo Foundation, the company invests in business-aligned focus areas like housing access and affordability, small business growth and financial health – issues that are foundational to economic mobility and long-term economic prosperity for communities. By aligning CSR initiatives with their core business expertise and mobilizing employee volunteers, Wells Fargo creates shared value that strengthens communities while developing a future client base.
Additional data from the 2025 State of Corporate Purpose Report affirms that leaders believe in the business case for investing in impact, with 92% saying they are investing because it’s good for business. Such business cases include metrics that align CSR program timelines, investments and outcomes alongside financial timelines and performance to create a holistic picture of business growth and value.
CSR program measurement for compliance
For highly regulated sectors, giving back to communities isn’t just the right thing to do – it’s a compliance requirement. Financial institutions in the U.S. must maintain compliance with the Community Reinvestment Act (CRA), which requires that banks help meet the credit needs of the communities in which they operate, including low- and moderate-income communities.
Reporting accurately on CRA-eligible activities is critical. This includes tracking corporate donations, investments and certain employee volunteer activities that support community development, as they are considered "community development services" under the CRA regulations. Poor reporting on community investment through volunteering or financial contributions can hinder a business' ability to receive proper CRA credit, and potentially result in fines and restrictions on growth opportunities like expansions, mergers or acquisitions. This is where CSR reporting software can help. By tracking CRA-eligible volunteering, grants and donations in a single, secure platform, financial institutions can enhance reporting accuracy, streamline compliance and meet regulatory needs – all while driving measurable community impact.
With 2025 State of Corporate Purpose data showing that 32% of large enterprises are focused on volunteering that counts toward regulatory reporting, the compliance link to purpose program impact is a critical CSR performance metric.
In addition, savvy financial institutions are figuring out that the compliance data required by CRA can be combined with corporate impact program metrics to enhance visibility into future customer bases, future products and even new market expansions.
Company-led impact programs unlock tax efficiencies
Social impact programs, especially those with a focus on charitable giving and grantmaking, can offer companies considerable tax advantages for supporting the communities they serve. Generally speaking, when a company gives directly to 501(c)(3) nonprofits in the U.S., it can reduce its taxable income. Similarly in the UK, companies that give to charity can get relief from Corporation Tax — the tax paid on company profits. Canada also has fairly generous incentives for corporate charitable donations, where companies can claim a deduction for certain charitable donations up to 75% of the corporation’s net income for the year.
In the U.S., some companies take an additional step to establish a corporate foundation to help do more good and unlock additional tax efficiencies. As 501(c)(3) tax-exempt entities, corporate foundations are legally distinct from the companies that fund them. This allows businesses to make tax-deductible contributions to their own foundation, which can then issue grants — including those that may not qualify for tax deductions when made directly by the company.
Purpose is a proven business driver
Whether it's fueling innovation, strengthening brand reputation or aiding in meeting regulatory compliance, purpose is a proven business driver. The most forward-thinking leaders and businesses aren’t just investing in impact – they’re championing it, amplifying it and taking the time to track and measure its value across the enterprise. Blending data from a CSR reporting platform with core business metrics over time brings the true power of purpose to the forefront of business strategy and planning. Those who successfully connect purpose and business goals have a unique opportunity: to lead in their categories and create lasting change in the communities they serve.
Note: The information provided is for informational and educational purposes only and should not be construed as financial, tax or compliance advice. Please consult your finance or compliance advisor for specific guidance on financial and compliance reporting.
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