There are going to be more social shocks and companies need local authentic ways to responds. Social shocks will come from global policy, climate and fiscal instability.
Thanks for sharing this, Larry - if only your friendâs approach to running a business were more common. This anecdote also highlights an encouraging fact: We all hear a lot about the bad behavior of big corporations and their high-profile leaders (eg: many of this weekâs top news stories in the U.S.). But we donât hear much about the smaller-scale entrepreneurs who go out of their way to make a positive local impact with their businesses â even if they may not necessarily describe their businesses as social enterprises. Thatâs a reason to be hopeful, I think, in these darkening times â thereâs a lot of good out there that goes largely unreported and unnoticed (beyond the local communities where these businesses operate).
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Donald Trumpâs second term will be a challenge to the social impact community. Even for those not directly affected, his policies and rhetoric send a signal to the private sector that they donât need to take their social, environmental, and climate responsibilities seriously. We need strong leadership
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Extreme weather events, rising temperatures, and shifting rainfall patterns disrupt agricultural productivity and threaten food security. Soil degradation, water scarcity, and loss of biodiversity further exacerbate these issues.
Solutions/Actions include:
- Direct philanthropic and investment capital to innovate and scale digital agri solutions supporting climate resilience and adaptation at the smallholder level.
- Invest in digital tools, such as sensors, IoT devices, AI-driven weather models, satellite data, remote sensing, digital financial services, etc. can improve production and support adaptation efforts and build resilience, making sure these are accessible to the most vulnerable.
- Promote sustainable practices such as regenerative agriculture and precision farming to enhance resource efficiency.
A2. I think it will come from the volume of mounting challengesânavigating economic uncertainty, tackling deepening health and social inequalities, combating climate change, and addressing the growing demand for accountability and measurable impact. To overcome these, we must double down on evidence-based decision-making, leverage expertise to maximize resource efficiency, foster cross-sector collaboration, and embrace innovative financing models that drive long-term, sustainable change.
We will increasingly see new and worse climate disasters. We should approach this challenge by preemptively building resilient communities along the supply chain in concert with workers.
First thing would be to recognise that thankfully YOU ARE NOT ALONE!
Too often people fear the challenges they are facing as they believe that their impact will be insignificant; however what I would say is that the COLLECTIVE, COLLABORATIVE and CUMULATIVE impact is what will really make the difference.
Find ways to connect with experience and to people who have made the mistakes in the past that you can avoid in the future!
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| a. | Being governed by fear rather than vision. |
|---|---|
| b. | If others tell you not to do something (itâs too âwokeâ; itâs not our âbusinessâ ) but you can point to concrete outcomes in the lives of the workers who make your products and services possible; have told the stories well; and are learning how to make more impact, you have a clear response. |
| c. | If you waffle, vacillate and lack clarity, you will end up with no action. |
| d. | The net outcome from no action is simple: people will stop working in your factories and stop picking your crops. The next generation of farmers will not farm. AI wonât save you from that. It wonât get you to Mars and keep you safe there either. |
| e. | But pressure is an opportunity. Innovation isâŚback as a buzzword? So maybe this year is a chance to try new things in a positive way. |
| f. | Yes, youâll probably have less money. |
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Lack of cooperation and lack of abilities to engage with the âegoâ movement, are the main challenges to move toward a more humane and ethical society.
Molly Burns from Womenâs World Banking here.
What priorities or actions should businesses focus on in 2025 to maximize their social and environmental impact? Apply a gender lens to climate change challenges to ensure solutions have maximum impact and are tailored to those most affected, not only with CSR initiatives, but through evaluating their entire supply chain and identifying opportunities to have an impact.
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On a human/feeling level, itâs important to acknowledge the emotional toil this work can take on us. Right now, social impact seems harder than ever to achieve with such polarisation and fragmentation that weâre seeing in the world today. The issues we are trying to address are complex as well. So, I would say that holding onto the hope that change is possible is probably one of the biggest challenges. The antidote to that is solidarity and allyship â how we are coming together to support each other, listen to each other, take inspiration, and then collaborate for impact. So, forums like this are important in achieving that and we need to believe and invest more than ever in actions that will deliver social impact.
Another challenge is around companies revisiting, revising, and sometimes even backsliding on their social impact commitments. Some of this may be linked in complexities or costs of implementation, but also due to ESG backlash weâre seeing. Weâre already seeing some major global brands dismantling ESG-related programmes and we need to make sure this doesnât become a trend. Peer-to-peer accountability is important as well as role in civil society in holding companies and governments to account, speaking truth to power. Again, collaboration, constructive challenge, highlighting best practice is needed to encourage, support progress and find practical solutions. For social impact leaders inside companies, being clear as to the business case/effect on the bottom of line of not engaging/backsliding could help, as well as linking the case to the companyâs values.
This challenge also links to one around fear of getting it wrong or fear of criticism which leads to inaction, backsliding, or short-termism.
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like your point⌠on reframing⌠but also, a concerted effort on womenâs roles leadership in this new world.
- If you could offer one piece of guidance to a corporate social impact leader stepping into 2025, what would it be?
There is ZERO room for complacency, business as usual, and/or âsteady as she goesâ attitude and behaviour. Embrace change like lives depend on it, because they do.
Regulatory drivers may take awasy social impact programs. It will be critical for companies and organizations to step forward and identify, measure and implement programs to increase co-benefits for people and think more innovatively in this area. We need to have nature and people part of the bottom-line. How do we do that? Who are the leaders? How can we create a shift?
A2: With the increasing scale of global crises, resources for social impact initiatives are overstretched. Addressing these constraints will require innovative financing models that can bring together public and private capital, such as refugee lens investing. Providing technical assistance, resources, and partnerships to help businesses integrate refugees into their operations will benefit both the businesses and the displaced communities. (We recently published a resource on technical assistance: RLI-TA Playbook: Enhancing Refugee Lens Investing Through Technical Assistance Report October 2024 - Refugee Investment Network)
The social impact community will also be faced with increasingly negative perceptions of refugees. Data and storytelling that highlight refugeesâ contributions to the private sector will be more important than ever in narrative change and policy advocacy to remove barriers to refugeesâ economic inclusion. To address any of these challenges, businesses and the social impact community will need to partner and learn from local stakeholders, including, importantly, refugees and host communities themselves.
2025 mega trends to watch out for:
1đIndustry policy is now truly in vogue, especially as âeconomic securityâ dominates policy agendas.
2đ˘Trade barriers are back - an escalation of tariffs is likely. The rules based WTO trade system is under threat as tit-for-tat measures escalate.
3đSecurity of supply is a growing concern, as commodity prices remain uncertain, and rise sharply in some commodities (cocoa & coffee prices soared in 2024).
4đď¸Corporates are focused on compliance & reporting, as sustainability innovation is deprioritised.
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A more general challenge the social impact community is facing is reduced and fragmented philanthropic funding and an increasing complexity to access and remain compliant with philanthropic funding.
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The focus and priority around collaboration is also a challenge - this often takes bravery, who is going to say yes first, which company will use their power to encourage their competitors to work with them instead of competing
The most significant challenge could turn out to be the biggest opportunity - by looking to âpivotâ and drive a different narrative which seeks to communicate the various economic benefits of social impact actions first, and the social aspects themselves as associated effects.
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A2: These challenges include underfunding of mental health and child protection, the growing role of technology, and the mental health impacts of climate change.
- Lack of Funding for Mental Health and Child Protection: Despite the growing awareness of mental health issues, particularly among young people, funding remains insufficient. This is especially true for child protection and mental health programs in vulnerable regions. Globally, less than 2 percent of government health spending is allocated to mental health for the general population, with only a small fraction of that amount directed towards mental health services for children. Businesses have an important role to play in this area by committing to more investment. By collaborating with NGOs and organizations like UNICEF and supporting initiatives that promote children and youth mental health and provide direct care to children, businesses can make a huge difference.
- Technology and Online Safety: With the rapid development of AI and social media, there are more risks than ever for children and youth, particularly when it comes to online safety. The negative effects of social media on young peopleâs mental health are already clear, but solutions must be more tailored. Businesses can advocate for stronger regulations around online spaces and ensure that tech companies are prioritizing the safety of young users. They can also partner with governments and civil society to create safer digital environments for all.
- Climate Change and Mental Health: Climate change doesnât only harm the environment, it impacts mental health, especially for vulnerable communities. As climate disasters become more frequent, the emotional and psychological toll on people is growing, particularly for children. Businesses need to recognize that climate action and mental resilience go hand in hand. Supporting communities through climate-related stress and offering mental health resources is essential to rebuilding hope and strength. In 2025, integrating mental health into climate resilience efforts will be key.
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