Corporate Responsibility: Doing What Is Right Versus What Is Required
The expectations placed on companies extend far beyond profitability and legal compliance. Stakeholders—employees, consumers, investors, and communities—are increasingly holding corporations accountable for not just what they must do, but what they should do. This growing call for ethical leadership and corporate responsibility presents both a challenge and an opportunity: will organizations simply meet the minimum legal requirements, or will they choose to lead with integrity, empathy, and purpose?
Traditionally, corporate responsibility has been anchored in regulatory compliance—following labor laws, protecting shareholder interests, disclosing financials. But as laws governing corporations have become more lenient in key areas, the gap between what’s legal and what’s ethical has widened. Deregulation may reduce red tape, but it also increases the burden on companies to self-regulate and uphold higher standards voluntarily. In this new reality, doing only what is required can no longer be equated with doing what is right.
This shift is not just philosophical—it’s practical. Employees are no longer passive participants in the workplace; they’re values-driven stakeholders. According to PwC’s Future of Work and Employee Purpose report, 86% of employees say they prefer to support or work for companies that care about the same issues they do. Furthermore, 76% of employees say they would not work for a company that does not have strong corporate values, according to a Glassdoor Mission & Culture Survey. These numbers make one thing clear: today’s workforce is demanding more than compliance—they’re demanding conscience.
Take, for example, paid family leave. In many places, legal mandates are minimal or nonexistent. Yet, progressive companies like Patagonia and Salesforce offer expansive leave policies and reintegration support—not because the law compels them, but because they understand the human and business benefits of doing so. These organizations aren’t just checking boxes; they’re building cultures of care and responsibility.
Environmental responsibility provides another lens. While some environmental regulations have been rolled back or weakened, many corporations are forging ahead with sustainability commitments, setting science-based climate goals, and investing in cleaner technologies. These actions are not legally required, but they are morally and socially necessary in a climate-conscious world. In doing so, these companies align with rising public expectations and secure long-term trust and resilience.
Social equity and workplace justice also illustrate the widening divide between legal requirements and ethical imperatives. The law may not demand transparency in pay equity or demographic representation, but responsible employers are voluntarily addressing disparities, embedding DEI into business strategy, and modeling inclusive leadership. Not because they have to—but because the future workforce expects them to.
The truth is, relaxed regulations remove the floor, not the ceiling. They may loosen external constraints, but they also raise internal questions: What kind of company are we when no one is watching? What do we stand for when we have the freedom to choose?
Of course, this path is not without challenges. Doing what is right often requires time, investment, and principled decision-making. But it also yields deeper engagement, stronger loyalty, and a brand built on trust rather than convenience.
In a world increasingly driven by values—and shaped by relaxed corporate laws—the real question for business leaders is not “What are we required to do?” but “What kind of organization do we want to be?” The difference between the two may very well define the next generation of corporate leadership. Those who can balance conscience with compliance, use purpose to drive profit, and lead for the long term.
Here are 5 impactful actions leaders can take to embed and elevate corporate responsibility throughout their organization:
1. Make Responsibility a Strategic Priority
Treat corporate responsibility as core to business, not a side initiative. Incorporate it into company goals, strategic planning, and executive KPIs to ensure it drives action, not just messaging.
2. Lead with Transparency and Accountability
Openly share the company’s impact, good and bad. Publish regular updates on sustainability, DEI, ethics, and community engagement. When mistakes happen, own them and show an improvement plan.
3. Empower Employees to Participate
Create clear pathways for employees to get involved—whether through volunteer programs, employee resource groups, or innovation challenges tied to social or environmental outcomes.
4. Build Responsibility Into Vendor and Client Choices
Apply ethical standards to partnerships. Vet vendors and clients not only on price and quality, but also on their environmental and social practices. Responsibility shouldn’t stop at the office door.
5. Incentivize Values-Aligned Behavior
Reward leaders and teams who demonstrate responsibility in action—whether it's reducing waste, creating inclusive practices, or going the extra mile for community well-being. Tie this to recognition, advancement, and bonuses when possible.
