Report Predicts Surge in Corporate Social Responsibility Investment

Benevity, Inc., a provider of social impact software, released The Executive CSR Report, detailing new research that shows increased executive commitments to corporate social responsibility in the year to come. The report from Benevity’s research hub, Benevity Impact Labs, shows that 76% of executives plan to increase investment, despite growing public scrutiny around CSR and environmental, social, and governance (ESG) commitments. The data also highlights that CSR is evolving from a siloed function to business critical and integrated into operations, as executives increasingly see it as a way to achieve business goals.

Among other trends, this report highlights the criticality of measurement in the current socio-political context. A third of leaders (32%) say measuring the social impact of their CSR initiatives is equally important to their company as measuring the business impact and improving measurement is needed to enhance accountability amid heightened scrutiny.

To understand executive sentiment toward CSR, Benevity Impact Labs surveyed 500 full-time leaders at the VP level and above in the U.S. and U.K. who work at companies with over $1B/£1B in annual revenue and with a level of insight and responsibility into their company’s CSR initiative planning and management. Other key findings from the study include:

• Increased CSR investment is on the horizon: Nearly a third of executives say they are currently allocating more than 10% of their total corporate budget to CSR, with 47% allocating between 6-10%. 15% of respondents anticipate more than a 15% increase in CSR budgets over the next year.
• CSR aligns with core business goals: Among companies increasing their CSR investments, 43% cite direct business ROI as the driving factor. Employee interest in working for companies with impactful CSR programs (53%) and consumer demand for brands that invest in CSR (49%) are also top motivators.
• Top investment areas focus on employees and ethical AI: Over the next 12 months, 52% of executives plan to increase support for employee resource groups (ERGs), while 44% will boost efforts to encourage employee volunteerism. Additionally, 40% intend to enhance their focus on developing ethical business practices around AI during this same time period.
• Measuring CSR impact is critical: While investments in CSR are on the rise, and almost half (47%) of executives strongly agree their company’s CSR initiatives are creating a positive business impact, the same percentage said CSR initiatives can be difficult to push forward because of low perceived value. 52% said competition for funds is a top obstacle. This gap shows the value of CSR initiatives remains a challenge for senior leaders and underscores the need for stronger measurement.
• Strategic leadership is the key to aligning CSR with business outcomes: Only 15% of leaders surveyed said they have helped set clear targets to make the impact of CSR initiatives a measurable business priority in the past 12 months. As the need for strategic oversight grows, robust planning and measurement systems will be crucial for ensuring CSR’s continued success.
• The U.K. excels in CSR compared to the U.S.: U.K. leaders dedicate more of their annual budgets to CSR than U.S. leaders, with 55% of U.K. leaders allocating 6-10% compared to 42% of U.S. leaders. Additionally, U.K. leaders are more likely than U.S. leaders (50% vs. 39%) to attribute increased CSR investments to direct business ROI, indicating U.K. organizations may secure CSR budgets more effectively by adopting a more business-aligned approach.

“Our data shows that even in today’s unpredictable socio-political landscape, most executives are increasing their commitments to social investments. This commitment comes with a pressing need to measure the business and social impact of those initiatives,” said Sona Khosla, Benevity’s Chief Impact Officer and head of Benevity Impact Labs. “This urgency for measurement needs to be matched with investment in robust data and reliable tools, but also embedding CSR into the business’s overall strategy with clearly set targets.”

Benevity’s solutions enable businesses to measure their outcomes holistically by embedding purpose-driven initiatives directly into the core of their business operations. Using innovative tools for data analysis and storytelling like Benevity Reporting Studio and Impact Reports, the platform allows company goals to be backed by clear, measurable actions across your organization through giving, volunteering, granting, DEI or sustainability efforts. Leading with data and insights, CSR programs can demonstrate tangible progress and help companies build trust with stakeholders ultimately enhancing company reputation and brand value.

Access the Executive CSR Report here.

Source: Benevity

The preceding press release was provided by a company unaffiliated with NonProfit PRO. The views expressed within do not directly reflect the thoughts or opinions of the staff of NonProfit PRO.