Giving Compass' Take:

• Here are five ways that companies can start to engage in meaningful corporate social responsibility and commit to improving the world. 

• How are consumers helping change the behavior of corporations?  How is social impact shifting toward for-profit, private sector entities? 

• Read about the future of corporate social responsibility.


This past August, a group of 181 CEOs from America’s most influential companies provided a new answer to a very old question: What, exactly, is a corporation for?

Maximizing shareholder wealth—an idea promoted by the late economist Milton Friedman—had been the singular mantra of business leaders for years. Yet the Business Roundtable Statement on the Purpose of a Corporation challenged the primacy of shareholders, adding them to a broader list of stakeholders that includes employees, suppliers, and the public itself.

While the lobbying group is hardly losing faith in the free market, its statement reflected a growing acceptance that businesses will be held responsible for their social impact—both positive and negative—as well as their bottom line. The modern CEO and CMO therefore have a duty to move beyond merely placating shareholders and toward creating models that are more inclusive and beneficial for a wider base of people.

Brands that want to increase mindshare—especially with younger audiences—need to engage with the societal problems they care about, supporting awareness and the development of near-term solutions that deliver tangible results.

The playbook for socially responsible companies will ultimately be written by the companies bold enough to demonstrate their commitment to the values we all share.

There are five steps brands can adopt to making this a reality.

  1. First, get off the sidelines. These are trying times, and consumers want to see brands take bold steps.
  2. Second, commit to something and deploy appropriate resources.
  3. Third, rally your employees. Motivated people will amplify your values as effectively as any social media campaign will.
  4. Fourth, be a part of the conversation—consistently.
  5. And finally, build a virtuous circle. Encourage consumers to support you by supporting causes that resonate with them and their communities.

Read the full article about corporate social responsibility by Donnovan Andrews at Fortune.