(Image: Tierney/Adobe Stock)
At a time when purpose and profit are increasingly seen as opposing forces, the year ahead presents unique challenges — as well as opportunities — for business leaders. As the aftermath of the U.S. presidential election emboldens voices that prioritize profit maximization over purpose-driven initiatives, companies find themselves navigating a landscape of heightened skepticism and scrutiny. Amidst this backdrop of political division and economic uncertainty, there lies opportunity for authentic, purpose-driven businesses to lead.
For the fifth year, we asked the Purpose Collaborative, our member network of more than 40 social impact-focused firms, to share their predictions for social impact, purpose and sustainability in 2025. Together, this brain trust is composed of more than 500 professionals from 33 countries, all working across social and environmental issues for leading corporations and nonprofit organizations.
Last year, we said purpose would be a beacon for business leaders over 2024. It has been, but it has also been challenged in profound ways. DEI and ESG efforts are under fire, leading many companies to stifle communications and disband teams, while quietly advancing internal inclusion, belonging, sustainability and climate initiatives. The year ahead will be dynamic for purpose-driven businesses. While skepticism and political pushback present real hurdles for business leaders, there are opportunities to connect with stakeholders in authentic and meaningful ways, all while driving bottom-line growth.
Business 101: Balancing profits and purpose
The perennial challenge of reconciling short-term financial demands with long-term purpose initiatives persists. “The election consolidated power for a segment of the U.S. that believes business leaders should be exclusively focused on profits and shareholder value, not corporate social responsibility,” said Caleb Gardner, co-founder of the management consulting firm 18 Coffees. “Purpose-driven business leaders will have to deftly navigate a skeptical public and a diverse employee base to elevate any business decision that is about more than making money.”
Further, the results of the U.S. presidential election have only increased scrutiny of corporate responsibility. "People are more skeptical these days of lofty goals for the far-off future because many that were set a decade-ish ago have not been actualized," said Jonah Lewis, founder of the creative studio Mensch.club.
This mandates companies to demonstrate genuine commitment to purpose through tangible actions and measurable results — not just rhetoric. The companies that ultimately succeed will be those that ensure “purpose is more directly tied to core business operations, anchored in day-to-day realities rather than ideological movements,” said Fabio Milnitzky, CEO of the brand purpose consultancy iN.
For some companies, this will come down to an ability to develop sustainable business models that integrate profit and purpose like Interface, Patagonia, or Tony’s Chocolonely. "The real challenge is building sustainable strategies that don’t sacrifice purpose for profit but make them mutually reinforcing,” said Greg Gomez, head of product for the app development agency 3 Sided Cube. “It’s about finding the sweet spot where purpose drives growth, rather than feeling like an add-on or a trade-off."
What to do about politics: Focus on your people
The next four years will likely be more about overcoming division than celebrating unity. There’s good news, though, as nearly half of Americans believe companies should do more under the incoming Trump administration when it comes to social issues. Further, 83 percent of respondents in our survey conducted by The Harris Poll said companies should focus on the issues that matter most to their employees.
Corporate purpose is most effective when it is developed, operationalized and lived by employees. Any organizations that feel unsure of what to do next would be wise to double down on their workforce. “Invest in people — politics, buzzwords and hot topics change with time,” said Matt Livingston, senior ESG lead for the creative sustainability agency R&G Strategic. “However, supporting your people and the communities they live and work in has always remained in style, and the positive benefits can long outlast a party’s political term.”
While the country as a whole may be grappling with division, empathetic leaders can focus on what brings people together within a company, and that could be as simple as a volunteer day or an innovation sprint. “The expected volatility ahead, whether driven by economics, politics or our changing climate, will present opportunities to lean into organizational values, prioritize empathy, and build deeper connections between you and your constituents,” said Carrie Fox, founder and CEO of the social impact and strategic communications firm Mission Partners.
Ultimately, “purpose falls flat if it’s not intrinsically felt and experienced throughout your organization,” added Melissa Orozco, CEO and founder of the impact public relations firm Yulu. “Your employees and board of directors are your greatest purpose advocates. Rally them to support your organizational reason for being.”
Wherever you go, go together: Collective action and local impact
Amidst escalating global and local challenges, experts foresee a surge in community-led initiatives and grassroots activism. “The years ahead are going to require creative collaboration across industries and sectors to address global challenges collectively,” said Danielle Finck, founder of the public relations firm Elle Communications. “Now is the time to consider working with those you might consider to be your competitors if your values and greater purpose are aligned.”
Companies can play a vital role by supporting these efforts, empowering employees to engage in community service, and partnering with community organizations to address pressing issues. This approach recognizes the power of collective action and leverages local knowledge and expertise to create meaningful change. “Solving large-scale issues like climate change, inequality and global health requires collective action,” Finck said. “However, a lack of coordination across industries, governments, and sectors often leads to fragmented efforts, diluting the potential impact of purpose-driven initiatives.”
Additionally, companies will focus on demonstrating impact through local initiatives that resonate with their communities and address specific needs. “In 2025, purpose will get even more practical by addressing the challenges people care about most,” said Kristian Merenda, partner at Carol Cone ON PURPOSE. “Businesses will make their mark through hyper-local actions — cleaning up neighborhoods, funding community health initiatives, and supporting schools with tools for success. By focusing on what communities truly need, purpose will become more than a statement. It will be a tangible, visible connection people trust."
Just be yourself: The imperative of corporate authenticity
"Your purpose cannot be in words only: It needs to be practiced through your internal company culture, your services, and what partnerships you will and will not take on,” said Michael Bellavia, CEO of the impact marketing and communications agency HelpGood.
Authenticity is paramount, especially as more critics claim “purpose-washing” or greenwashing. The companies that are truly “walking the talk” will be able to demonstrate their impact — both business and societal — and move on.
As stakeholders demand greater accountability, companies will need to provide concrete evidence of their impact, moving beyond vague pronouncements to showcase tangible results. “Companies that win in 2025 will find a way to execute their purpose that's practical, without being preachy, placing a growing emphasis on robust metrics and reporting frameworks to track progress, measure impact, and demonstrate accountability — across both social and environmental spheres,” said Chris Noble, CEO of the brand purpose agency Matchfire.
"Purpose becomes pointless if it’s a marketing exercise versus a measurable exercise,” Orozco added. “Consumers will turn away from organizations that make sweeping statements about their impact, and instead, turn toward organizations that provide specific and measurable proof about the difference they’ve made."
Looking ahead: 7 tips for business leaders in 2025
Not sure where to start? Purpose Collaborative members offered seven tips to help practitioners at any level start the new year off with purpose, precision and sustained impact.
1. Lead from within. Empower employees to participate in purpose initiatives, fostering a sense of ownership and shared commitment. “Purposeful leaders will need to embed DEI into the fabric of their organizations rather than spotlight it, prioritize care for their employees, maintain open lines of communication and respectful dialogue across teams, and focus on publicly challenging misinformation when it arises,” said Fox of Mission Partners.
2. Stay the course. Resist the temptation to waver in the face of political pressure or short-term financial concerns. Authenticity and consistency are paramount to building trust and achieving long-term impact. “Companies that want to engage their employees, consumers, customers and shareholders in their purpose need a steely resolve that can be supported by concrete actions and courage,” said Phillip Haid, CEO of the social impact agency Public Inc. “If your purpose is authentic, actionable and aligned to the values of your key audiences, then it’s hard to go wrong.”
3. Take collective action. Partner with other organizations — even competitors — to leverage collective expertise, resources and networks to address complex challenges. Coalitions are a powerful force that can fast-track progress. “Purpose-driven companies will increasingly address interconnected global challenges — such as climate, equity and health — through partnerships that aim for systemic impact rather than isolated gains,” said Finck of Elle Communications.
4. Invest in underserved communities. Direct resources toward initiatives that empower marginalized groups, address systemic inequities and create opportunities for all members of society. “Brands that strategically and authentically invest in programs that support small businesses, especially in underrepresented areas, can drive meaningful impact in the communities they serve and authentically enhance their reputations, especially among young people,” says Laura Ferry, founder and president of the brand citizenship consultancy Good Company.
5. Build trust through transparency. Communicate openly and honestly about your purpose journey, including both successes and challenges, to foster trust and accountability. “Worry less about the politically charged phrases, and keep your focus on the fundamentals of the business, and your core audiences,” said Noble of Matchfire. “Consumers and employees still want to associate with companies that they feel are making a positive impact.”
6. Measure and communicate impact. Develop robust metrics to track progress and effectively communicate your impact to stakeholders, demonstrating the tangible difference your company is making. “Companies will no longer see purpose as an abstract ideal but as a business driver that must be quantified and refined,” said Milnitzky of iN. “These metrics will not only justify the importance of purpose but will also direct its evolution within the company and in society.”
7. Connect with people through storytelling. Craft compelling narratives that humanize your purpose, showcase the human impact of your work and inspire action. Storytelling can bridge divides and foster understanding. "In a world increasingly fragmented by ideological, cultural and social divides, storytelling offers a way to bridge the divides, disrupt misguided beliefs, fire up campaigns, build empathy and connect us to each other,” says Nicole Rennie, founder and executive producer of the video production company Forward Storystudio. And it’s not just a feel-good effort. “Authentic storytelling is one of the most powerful tools for changing behavior — and positive behavior change is where long-term, tangible impact lies,” said Orozco of Yulu.
As business leaders navigate the complex landscape of 2025, embracing these principles will be crucial to becoming authentic forces for good. In a world grappling with unprecedented challenges, the need for purpose-driven leadership has never been greater. Those who rise to the occasion will not only shape a more sustainable and equitable future, but also position their companies for long-term success in an increasingly conscious and demanding market.
Carol Cone is internationally recognized for her work in Purpose and CSR. Carol Cone ON PURPOSE is the return to her entrepreneurial roots and life’s passion: to educate, inspire and accelerate purpose programs and impacts for organizations, nonprofits and individuals around the globe. For over 30 years, she’s embraced a steadfast commitment to building lasting partnerships between companies, brands and social issues for deep business and societal impact. She adamantly feels that today, companies and brands must stand for something beyond the bottom line. When she began her work, companies and brands questioned “if” they should engage with social issues. In today’s totally transparent, social world, it is now about “how” brands and companies express their values and character through authentic engagement with society. She is a sought-after speaker and media expert, sharing her insights on purpose branding, corporate citizenship, sustainability and CSR.
Kristin Kenney, Director at Carol Cone ON PURPOSE, has spent her career helping dozens of private- and public-sector companies bring their social impact to life. She firmly believes that business can and should profit with purpose.