Building Trust in a Time of Uncertainty: David Gonski on Corporate Social Responsibility
In an era marked by shifting political climates and business uncertainty, conversations around responsible business practices have never been more critical.
In the final episode of Leading Australia’s Just Transition , Professor Danielle Logue , Director UNSW Centre for Social Impact, sits down with esteemed business leader and Chair of the CSI Advisory Council , David Gonski AC, to explore the evolving role of corporate social responsibility (CSR) and ‘social licence to operate’ debates.
Drawing on nearly five decades of board-level experience - from chairing major banks and multinational corporations to leading arts and educational institutions – David Gonski offers reflections on the role of Environmental, Social, and Governance (ESG) commitments.
Balancing Profit and Purpose
Gonski highlights that today’s boards must consider more than profitability; they face growing expectations from consumers and communities around environmental responsibility and social equity. Noting a key tension lies in reconciling immediate profit pressures, with the need to invest in a socially responsible future.
‘The fundamental thing about company life is the old, vexed problem of short versus long term thinking. It’s a no-brainer to be corporately socially responsible if you’re looking to the long term. The problem becomes if you’re being held to short term obligations.’
Social Licence to Operate
In Gonski’s experience, the push for corporate social responsibility has emerged more from customer and community expectations, rather than from top-down policy and government mandates. He points to the critical role of stakeholder voices—particularly consumers—in driving meaningful change.
‘The consumers have been the ones who’ve demanded most,’ remarked David, ‘In packaging … people have said, ‘I don’t want to litter. I want to have some donation by the company.’
Measuring Social Impact
While the rationale for CSR may be clear, measuring and reporting actual impact—environmental or social—remains a complex challenge.
“You can look at the various new structures and whether you are affecting the environment, or what success in coming to zero is. And you can see the dilemma that a board has in trying to work that out.”
“I feel in the next 10 years that corporations will have to be very clear on a longer-term thinking basis. We’ll have to make very clear how they’re going to test, and what they’re actually going to do.”
Future Trends in Corporate Social Responsibility
Despite pushback in some quarters, Gonski sees a powerful momentum toward businesses taking greater responsibility. Longer-term thinking, transparent engagement, and a willingness to listen will increasingly define successful corporate leadership.
“If corporations put their focus on being part of the community, living up to the requirements that a community may need through corporate social responsibility, the dividend for the corporation will be an increase in trust.”
Ultimately, Gonski’s perspective offers a timely reminder: in an uncertain world, integrating purposeful strategies with robust stakeholder engagement is not just an ethical stance—it’s essential for building enduring trust and long-term resilience.
