The Role of Corporate Philanthropy Amid a Shifting Corporate Responsibility Landscape

Corporate leaders in the United States are navigating a dizzying pace of federal actions under the Trump administration, impacting all aspects of business from trade and supply chains to human capital policy. Companies are reacting swiftly, particularly around areas under direct threat such as diversity, equity and inclusion (DEI). For leaders in functions related to sustainability, corporate citizenship, DEI or other “social good”-related activities, there is quite a bit of consternation about where to stay the course, where to pull back and where to double down.  

For corporate philanthropy leaders, however, this moment should look a little bit different. Yes, they may need to take stock of existing programs to identify areas of legal risk (particularly those that target specific demographic groups). But corporate philanthropy is distinct from other areas of corporate responsibility for a couple of reasons: 

First, engaging in corporate philanthropy was commonplace in the United States long before the terms ESG (environmental, social and governance) and DEI came into the corporate lexicon. The tradition of companies giving back to the communities where they operate has been part of the corporate social compact in this country dating back to the mid-20th century.  With this backdrop, corporate philanthropy may offer a relatively safer space for companies to continue investing in social impact.  

Second, corporate philanthropic capital is incredibly unique—while representing a small portion of overall corporate budgets (typically only 0.1% of revenue, according to Chief Executives for Corporate Purpose), it is the only funding companies have at their disposal with no expectation of direct financial return. It can be walled off from the day-to-day decisions and pressures of a business through separate fiscal entities (i.e., a foundation) and governance structures. It is therefore a powerful tool to fund long-term investments with meaningful societal impact, when deployed strategically. 

Three Areas of Opportunity for Strategic Investment

So corporate philanthropy leaders, take a beat. Let philanthropy be your long game, not a reactionary pot of money that ebbs and flows with the political winds. Consider areas of strategic investment best suited for philanthropic capital. Here are three areas where you might find such opportunities in this moment: 

Take a look at your business strategy: where can philanthropy help build the long-term operating environment? Companies have been increasingly aligning their philanthropic investments with business priorities for several years; in a January 2025 survey of corporate citizenship executives conducted by The Conference Board, 75% reported greater alignment of their philanthropy with core business priorities over the past three years and 73% expect this trend to deepen by 2028. This alignment could look like investing in future talent pipelines through workforce development programs, building new customers markets or raising sectoral standards through industry collaboration. These ideas are not new—they were championed by Michael Porter and Mark Kramer in The Competitive Advantage of Corporate Philanthropy nearly 25 years ago. But they are more relevant than ever as corporate philanthropy leaders navigate increasing pressure to align their programs with long-term business goals.  

Consider your company’s sustainability goals: how can philanthropy be used as R&D to accelerate innovation and progress? Many companies are struggling to meet ambitious sustainability targets that were set without a clear path to achieving them. While business investment is still critical, philanthropy can be leveraged to explore frontier opportunities or research where the financial return on investment is uncertain. Walmart has done this with their exploration and adoption of regenerative agriculture practices. They leveraged the Walmart Foundation to invest in philanthropic opportunities that advance research and pilot projects to develop regenerative practices that can ultimately be scaled and embedded across Walmart’s value chain. By pairing philanthropy closely with sustainability goals, companies can optimize their different forms of capital and enable the learnings from their philanthropic investments to be fed back into the business. 

Focus on the home front: how can philanthropy help build thriving communities amid uncertainty in the social sector? With federal funding rollbacks underway, resulting budget gaps and general funding uncertainty are forcing programmatic cuts across the nonprofit sector. These cuts are likely to have significant, tangible impacts to the wellbeing of communities around the country. While businesses cannot be expected to fill public funding gaps, they are bound to see and feel the ramifications of these cuts in the communities where they operate. Companies can monitor emerging needs and consider where their philanthropic capital and/or in-kind support can go the furthest in easing the burdens faced within their communities. They can also start conversations with existing grantees to understand how their needs may be shifting in the current environment and what support they may need.  

Amid a shifting corporate responsibility landscape, corporate philanthropy offers a stable foundation for social impact. By prioritizing strategic alignment with business goals, investing in sustainable solutions and strengthening local communities, companies can leverage their philanthropic capital to create lasting impact regardless of political headwinds.