Are You as Socially Responsible as You Think?

Why Leaders Think They’re Doing More Good Than They Are

By: Rory MacLeod 

In 2025, the Edelman Trust Barometer delivered a striking message: 7 out of 10 people believe business leaders deliberately mislead them. Inside organizations, the view isn’t much better; 74% of employees say their employer’s social and environmental promises don’t match reality. 

For leaders confident in their company’s positive impact, this is a wake-up call. The gap between what leaders believe and what stakeholders experience isn’t just a perception problem; it’s a trust problem. And trust fuels employee loyalty, customer commitment, and investor confidence.

When Good Intentions Aren’t Enough

Executives often see their organizations as socially responsible, pointing to sustainability projects, diversity initiatives, and community partnerships as evidence. But employees and customers are more discerning than ever. They expect authentic impact and clear results, not well-meaning statements or glossy reports.

Why does this gap persist?

• Optimism bias: Leaders assume good intentions automatically equal meaningful impact.
• Communication gaps: Many organizations struggle to clearly share the real outcomes of their efforts, leaving stakeholders guessing.
• Internal echo chambers: Groupthink reinforces the belief that the organization’s impact is fully recognized externally.

The result is a social impact gap: a growing mismatch between perceived and actual trust and impact.

Why Closing the Gap Matters

The cost of this disconnect is significant. High-trust companies deliver 2.5× more value than peers, according to BCG, while low-trust organizations often spend years recovering from reputational setbacks. In today’s hyper-transparent, social-media-ready world, even a hint of “greenwashing” can undo years of well-intentioned work.

How Leaders Can Close the Gap

Bridging this divide requires moving from assumptions to evidence:

1. Audit your social impact. Compare internal perceptions with how employees, customers, and communities see your efforts.
2. Engage your people. Include employees, customers, and community voices in evaluating impact and expectations.
3. Communicate transparently. Share both successes and shortcomings openly to build credibility.
4. Align impact with purpose. Ensure your social responsibility initiatives are authentic extensions of your organizational values.

This approach shifts ESG from a box-checking exercise to a genuine business driver that inspires trust and loyalty.

Authenticity Is the Advantage

Closing the social impact gap helps businesses attract and retain top talent, win customer trust, and appeal to stakeholders increasingly focused on ESG performance. It also positions organizations as credible, responsible leaders in their markets.

The 2025 Edelman data is clear: people want business leaders to act on social issues—but only if it’s real. For leaders willing to listen, reflect, and align action with purpose, trust transforms from a vulnerability into a competitive advantage.

At MacPhie, we help organizations align strategy and communication to build authentic social impact that resonates with stakeholders. When your purpose and actions are clearly connected, your organization’s trust and relevance will thrive.