Millennials now represent 35% of the total US labour force, making them the largest working generation. And given that 76% of them consider organisations’ commitment to social and environmental issues when deciding where to work, it’s no surprise that the social good movement is on the rise.
Millennials have grown up with an abundance of information and exposure to the broadening call to address climate change and make the world a better place for future generations.
And, this undoubtedly affects how the corporate world is moving forward in social mindedness.
The benefits of corporate social responsibility
The social good movement is not only meant for millennials. It’s good for everyone. A good corporate social responsibility (CSR) strategy demonstrates your organisation’s commitment to positively impacting society by actively engaging in battling the issues that are plaguing our world.
Joining the social good movement and having a CSR strategy matters because:
- It reflects positively on a brand’s image. Demonstrating your organisation’s dedication to a cause larger than profits enhances its reputation, earns the trust of the general public and offers better publicity.
- Showing that you care to improve the society/community where you operate builds customer loyalty. Your passion for making the world a better place establishes an emotional connection with your customers.
- In recent times, venture capitalists and job seekers have been found to seek out social-minded companies. Social good initiatives help organisations grow in scale, impact and worth, thereby making them more attractive to investors. Socially conscious organisations also enjoy greater talent attraction.
- CSR yields greater community engagement. Companies that have good social initiatives can encourage their community members to participate in and support such projects. Uniting to do good breeds a sense of oneness of purpose.
- It can help legal obligations. Organisations are expected to display good corporate citizenship; governing bodies in different jurisdictions across the globe lay down rules to this effect. By embarking on CSR initiatives, organisations stay on the good side of the law.
- Social consciousness yields higher profits and greater networking opportunities. Companies that have CSR projects relish a competitive edge and can charge higher rates from their customers; after all, 66% of global consumers are willing to pay more for sustainable brands. Also, such organisations can connect with other socially minded organisations.
How millennials are driving brands towards social responsibility
Millennials are undoubtedly driving businesses across the globe toward more sustainable practices. Here are ways they are doing so.
1. Talent recruitment
If you want to hire the best talent, you need to offer what they’re looking for. Research proves that 64% of millennials prefer jobs at organisations with a clear corporate social responsibility strategy.
Neglecting the expectations of this generation might imply largely missing out on what they have to offer. Brands that are keen on attracting and retaining millennial talent are compelled to join the social good movement and take CSR seriously.
2. Responsible consumption
Millennials have a strong tendency for sustainable consumption.
They prioritise quality over quantity and are willing to spend top dollar on products and services that are of higher quality and last longer. Likewise, they’re interested in patronising brands that align with their values of fair labour practices, ethical sourcing and responsible supply chains. In fact, research shows that 75% of millennials globally are willing to pay more for sustainable brands.
This inclination on their part means that social consciousness is the best bet for brands to attract this generation of customers.
3. Support for purpose-driven brands
Millennials aren’t shy about their values. They will support–financially and publicly on social media–the companies that prove their positive impact in the world.
This support can take a variety of forms such as donations, endorsem*nt and promotion of the organisation, following the organisation on social media, attending their events and participating in activities both online and in person. Such backing can help organisations grow in reach and impact.
4. Activism
Being a generation that speaks out about what matters to them, millennials drive social-minded businesses through activism. They have a penchant for using whatever media is available to talk about social issues and demand transparency and accountability from brands. Organisations and businesses can offer opportunities for activism for their employees and community. Also, businesses are compelled to operate more consciously and source materials sustainably.
5. Impact investing
Impact investing is another way millennials drive social-minded business. It’s a double-pronged investment approach that aims at making a positive social impact and generating financial profit. By allocating capital to projects that address environmental and social challenges and offering investors the opportunity to align their financial goals with their values, it harnesses the power of capital markets to do good.
According to a study featured by Entrepreneur, 52% of millennial investors consider the social responsibility of their investments to be an important selection criterion. The popularity of this strategy among this generation of investors has encouraged companies to take CSR more seriously in order to look more attractive.
6. Partnerships
Millennials want to do business with socially responsible companies. They’re keen on joining forces with organisations that align with their values as opposed to brands that only care about maximising profits. Since brands are interested in such collaboration opportunities, this generational shift has driven many brands to join the social good movement or kick their efforts up a notch in hopes of picking up steam among millennials.
Millennials are helping move the needle toward a more sustainable world through their dedication and prioritisation of corporate social responsibility. But it’s up to all of us to ensure the future will be fair and good for us all.
