Four questions that will determine the future of business for good

In the midst of economic uncertainty, polarizing politics, global conflict and a future that is largely out of focus, many consumers are continuing to fight the good fight when it comes to using their dollars to drive positive change.

It’s the 13th year that I have helped run an annual survey on the momentum of socially responsible spending, nonprofit giving, and earth friendly practices, called the Conscious Consumer Spending Index. This year we found that despite a worsening view of the state of the world, consumers are holding firm in their support of conscious brands: A majority of respondents said they were actively supporting purposeful companies, while roughly a third plan to increase the amount they spend on socially responsible products and services in 2026. 

Digging deeper into the data, we identified several questions that are worth serious consideration. Below are four mission critical issues that purpose-driven individuals and organizations should meditate on as we enter a new year.

1: Is being socially responsible an all or nothing proposition? 

In our study, one third of consumers reported boycotting specific companies or brands because they were not socially responsible, and 31% said they had encouraged family or friends to avoid a company or product because it was not socially responsible. 

In spirit, this enthusiasm is a positive. However, it is important to evaluate where we are setting the bar for brands. While there are examples of companies who have clearly crossed lines and are easily categorized as “not socially responsible”, there are many organizations who are on a journey toward being a “good company” and experiencing setbacks and growing pains along the way.

There is a big difference between a company who has no moral compass and no regard for what’s best for its people, the community and the environment, compared with a company who is pure in its intentions to be more purposeful but not yet perfect in its execution. 

As a result, we must strike a balance: holding companies accountable to a set of meaningful standards without being elitist and too quick to cancel a brand for not yet checking all the boxes when it comes to being socially responsible. Set the bar too low, and the bar means nothing. Set the bar too high, and many organizations might decide being a “good brand” is out of their reach. 

2: Should we separate politics from purchases when it comes to socially responsible brands?

Consumers want “good” brands to take stands. When asked if socially responsible brands should weigh in on cultural and political issues, 36% said yes. Another 34% said it depends on the specific situation. Only 21% percent of respondents said no, while 9% had no opinion on the matter. Those who want brands to choose sides represent the most conscious of consumers. More than half (55%) plan to increase their spending on socially responsible goods and services in 2026.

This mindset is potentially polarizing and counterproductive when it comes to advancing the conscious consumerism movement. Showing preference to brands who prioritize their community, their workers, the environment and society at large is different from aligning with these same brands based on their activism on specific issues.

We are experiencing an unprecedented divide when it comes to politics in this country. It is worth debating whether it is wise to mix political leanings with mission and purpose when evaluating whether a company is socially responsible. At the end of the day, should socially responsible behaviors be a partisan issue?

3: Are we doing enough to raise awareness and understanding of brands doing good?

On the whole, awareness remains a key issue when it comes to socially responsible brands. Collectively, those who are a part of this movement should consider doubling down on efforts to spread the word and educate consumers. As an example, our research shows that 75% of Americans still aren’t familiar with the concept of a B Corp. While we’ve made progress on this front in the last decade, we are still falling far short of where we need to be to advance the overall movement and reinforce the right behaviors. 

In addition to raising general awareness, we also need to help consumers identify specific brands to support. Most consumers can accurately articulate what makes a company socially responsible, but when they find themselves in real world consumption scenarios, the “good” choice is not obvious enough. 

When we ask consumers to name a company or organization that is socially responsible, Amazon and Walmart continue to dominate responses. Brands like Patagonia and Ben & Jerry’s are also popular answers, but overall this data point reinforces the fact that most consumers do not have a working filter for separating purposeful brands from those who are not actually mission driven.

The most frequent way consumers make this decision is by reading packaging labels. We need to equip them with better tools and encourage them to be more proactive if they are serious about being purposeful when shopping. 

4: Is increasing interest in conscious consumerism bad news for nonprofits?

When comparing nonprofit giving trends with the trajectory of conscious consumerism, the CCSIndex data shows that charitable donations have lagged behind socially responsible spending since 2017. The gap is widening, driven by a youth movement that is more likely to do good by shopping responsibly versus making financial contributions to causes. 

For Americans ages 18-34, 31% prefer to give back by buying socially responsible products and services instead of donating to charity, compared to 27% of those who are 35-54, and 17% of Americans who are 55 or older. The youngest cohort was the least likely to have contributed financially to a charity in the previous year. 

While some of this can be chalked up to financial constraints for younger individuals, that likely isn’t the entire story. Historically, giving levels have increased as individuals move into older age brackets and are more financially able to give. Evidence suggests a shift is occurring among Millennials and Gen Z toward alternative giving channels, and that this shift might just stick as they age.

Specifically, it seems clear that younger Americans favor conscious consumerism over charitable donations. It’s less clear what should be done about this trend. Regardless, charities should be paying close attention to where things are headed and how their fundraising strategies can evolve. 

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