It’s a New Age of Corporate Citizenship
A few weeks back, the American Museum of Natural History made headlines. It had withdrawn from giving its venue for a dinner reception organized in honor of Brazil’s President.
But what changed? President Bolsonaro became the subject of public outcry for his controversial standing on important environmental and social topics. Sponsors such as Delta Airlines and Bain & Co. had also pulled out of the event, leading to much media speculation.
Meanwhile, in early May, Facebook announced its decision to permanently ban a number of well-known figures. The reason? Violating its policies on promoting hatred and violence among its users.
While these two news stories may seem unrelated, you can’t help but notice an underlying trend — more and more companies are taking action on matters that extend beyond profits.
So what’s driving these big brand behavior? Well, there are bigger underlying social shifts that are now triggering shifts in Corporate thinking.
The voice is getting louder
Public voice demanding corporations to be responsible is getting louder and louder. Social and environmental movements and activism are now driven by everyday individuals much more than traditional NGOs like Greenpeace or Amnesty International. Social media and the internet have given them a global voice, instant access to an infinite amount of information and have created a culture of sharing, increasingly empowering them to raise their voice on matters important to them.
Social and environmental consciousness at an individual level is also on the rise more than ever before. Ordinary people are increasingly engaged in creating a voice on important social and environmental topics - from diversity and human rights to climate change.
This is especially high on the agenda for the millennials and Gen Zs. Take, for instance, the teenager Greta Thunberg, who was protesting alone last year in front of Sweden's Parliament calling for immediate action on climate change. Today, her “School Strike for Climate” campaign has become a global movement. It has attracted teenagers from over 100 countries and drawn much media attention. Clearly, more and more youngsters are raising their voice and this will only continue to get louder.
The Millennial CSR Study done by Cone Communications reveals that nine out of 10 millennials were willing to switch to a brand associated with a cause, while 62% of millennials surveyed were willing to take a pay cut to work for a responsible company.
Priorities are changing
A 2018 Sprout Social survey reveals that 66% of consumers believe it to be important for brands to take a public stand on social and political issues. But it’s not just the consumers…employees are also demanding that companies re-look at their priorities.
Last year, Google faced employee backlash for its AI work carried out for Pentagon’s Project Maven, which in the end drove Google to announce its decision to not renew the contract.
Corporations are no longer simply held accountable for their own actions. They are now expected to proactively take a stand on topics that extend beyond their own areas of business. Corporate citizenship is no longer simply about doing good for the community or making donations for a worthy cause. They are expected to champion causes that have a larger impact on society and the planet and create a voice on topics as diverse and controversial as ever before.
Companies are now required to have a greater purpose that transcends profits. The Virgin Group led by Richard Branson is a case in point. It has been successfully leading meaningful conversation and action around controversial topics to drive change on a global scale. Defining its purpose as “changing business for good”, the Virgin brand and its Founder Chairman have been at the forefront of advocacy on topics as diverse as drug policy reforms, LGBT rights and the death penalty.
The pressure is on all
The pressure to take action for the greater good is not only on corporates. Governments are also forced to rethink how they make decisions as civic movements continue to shape policy decisions affecting the entire fabric of nations.
The severe disruption caused recently in London by the civic movement Extinction Rebellion is an extreme example of civic activism. They were able to draw the attention of international media on the need for more aggressive climate action by the British government.
The School Strike for Climate, a global youth movement, is estimated to have brought over 1.5 million youth to the streets in 125 countries this year. Organized primarily through social media, they have created a global voice to demand that governments take urgent action on climate change.
These global movements are creating waves at unprecedented levels. And governments are now finding it difficult to continue to ignore important social and environmental matters in the face of rising civic activism.
Purpose leading to profits
So, can purpose win profits? There is increasing evidence to show that it can.
Gen Zs are now entering the workforce, while millennials are transitioning to leadership roles.
According to Manpower Group, millennials and Gen Zs combined will consist of over 50% of the global workforce by 2020, and they are also set to dominate global consumption.
Moral authority and purposeful activism are high priorities for millennials and Gen Zs. And this is putting pressure on companies to take serious action for the future sustainability of their businesses — from attracting and retaining the best talent to building brand loyalty among consumers in the future.
Some are already well on track to secure the trust of these important stakeholders and taking purpose-led action beyond profit motives. The full-time Activism Manager roles created at Ben & Jerry’s is a good example of how serious companies have become in integrating their purpose-led work into business strategy. These unique roles have been created by Ben & Jerry’s to drive its work on important social and environmental issues, from refugee and asylum seeker rights to climate action.
To sum it up…
Over the decades, there has been much pressure on companies to be responsible and accountable for their actions. And some big brands have voluntarily pursued these with a proactive approach. Retail giants like Nike and M&S have reviewed their sourcing policies and taken action against the exploitation of workers in their value chain. Big brands like Apple and Lego have worked hard to reduce their packaging and introduce recyclable materials.
Companies are now expected not only to be accountable for the impact of their own actions but also to stand up for important topics of a national and global significance.
Corporate social advocacy is gaining traction as companies are increasingly pressured to act as social catalysts and exercise their power to positively influence not only the public but also the governments.
Technology has empowered civil activism at a scale never seen before. Millennials and Gen Zs will be the biggest proponents of this new wave of activism to inspire action. With their growing significance in the workforce and consumption, companies are forced to gear up for this new era of corporate citizenship.
(This article was first published on LinkedIn)
