Most Gen Z and millennials call for greater corporate action on social issues, report finds

More than half (53 percent) of Gen Z and Millennials expect companies to take a stronger stance on social issues, such as addressing race riots in the UK or abortion rights in the US, the investigation found.

The Purpose Pulse 2024 report, from Purpose Union, Root Cause and Brand & Reputation Collective, surveying 1,638 Gen Z and Millennials in the UK and US (832 UK respondents), shows a sharp increase of 39 percent in 2021, with 58 percent. percent of Gen Z and 49 percent of millennials believe companies are falling short in addressing social issues.

The survey also found that despite low trust, Gen Z and millennials demand more action, with less than a third believing that companies (32 percent) or governments (29 percent) can address major challenges in the face of to political and economic changes. .

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Oliver Hodgson, founder and managing director of Platinum Live, who previously wrote for People Management about being the head of a Gen Z company, explained that the rise in the number of millennials and Gen Z wanting companies to take a stance on social issues can be attributed to a few key factors.

“The Millennial generation and Generation Z grew up with immediate access to information and we are constantly exposed to the way companies engage with social issues through the media and social platforms. This created an expectation that brands would not remain silent on issues that affect society”, he stated.

He also highlighted how the personal values ​​of younger generations are shaping their careers and consumer choices. “Many of us consciously support brands that reflect our beliefs on issues like social justice, diversity and sustainability. With movements in these areas gaining momentum, we naturally expect companies to intensify and align their actions with words”, he explained.

The report notes that Gen Z, in particular, is attracted to “companies and brands that are genuinely passionate about harvesting their enthusiasm, energy and ideas to work together to solve society’s biggest problems, whether it’s racial and economic inequality or climate change.”

In addition to social issues, millennials and Gen Z expect organizations to take care of their employees (81 percent), keep commitments and promises (78 percent), support equal pay for equal work (78 percent), be transparent (76 percent). percent) and have clear vision and values ​​(75 percent).

Hodgson emphasized that for these generations consistency is vital. “It’s not enough to post support for a cause on social media – companies need to back up their words with actions,” whether through long-term DEI, sustainability or equal pay initiatives.

EDI in the workplace

Diversity and inclusion are particularly important to Gen Z and Millennials when deciding where to work. The survey found that almost three-fifths (57 percent) believe it is critical for organizations to establish racial and gender goals, and more than half (51 percent) believe companies should actively promote diversity and inclusion.

Almost two-thirds (62 percent) believe that Equity, Diversity and Inclusion (EDI) initiatives help build trust, while employee well-being is another key factor, with four in five (81 percent) agreeing that It is the most effective way to strengthen relationships.

When asked why organizations should prioritize EDI policies, 26 percent said it is simply “the right thing to do,” compared to just 8 percent who cited financial benefits.

Charline Merieau, founding partner of Root Cause, said that to meet the expectations of Millennials and Gen Z, organizations need to prioritize “partnerships and coalitions that work toward common goals.”

Similarly, Phil Riggins, founder of The Brand & Reputation Collective, said, “If business leaders want to earn the trust of the next generation of consumers and employees, they need to realize that Gen Z and Millennials see purpose as ‘ do the right thing’ not just about corporate perks. Companies that recognize this will be better positioned to drive social impact and long-term success.”

Meanwhile, Sarah Kerr, technical HR consultant at Adviser Plus, stressed that organizations must prioritize EDI to meet the expectations of Gen Z and Millennials or risk a talent shortage. To address this, she recommended that organizations conduct an assessment to identify gaps, update policies and empower HR teams to drive change.

HR professionals looking to tackle these challenges can attend the CIPD Annual Conference (6-7 November), which includes a session dedicated to diversity and inclusion. Find out more and book your ticket.