British businesses must hit 1% giving goal

Social capital in communities across the land has been badly depleted over many years. Unless business helps to build it up, especially in the worst-affected places, financial capital is unlikely to generate the returns it needs from investing in local businesses.

CAF makes three excellent proposals to get things moving in a better direction. First, the decision to drop mandatory reporting of giving by listed companies was a mistake; it should be restored. Transparency can drive greater activity.

Second, when firms do give, they should use a strategic community investment framework that treats giving in the same rigorous way as other business strategies, as the evidence suggests this has far greater positive impact.

Third, every FTSE 100 company should give away at least 1% of profits every year. In 2024, only 24 did so (down from 28 a year earlier), led by Sainsbury’s (13% of profits) and GSK (10%). Achieving that 1% goal could make a huge difference.

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