If you want your organisation to live into the future – Start making a difference.

The world is changing, gradually but surely. Whether because of technology and globalisation or for evolutionary reasons, but we are slowly entering into a new age. If you consider the boom of non-profit organisations, social movements such as the minimalist movement and the fact that there are people today selling out their possessions to free themselves of the burden of debt, it becomes clear how much values have changed.

The Capitalism nurturing a consumer society of people driven by consumer values and conscience seems to not work as well as it used to. And that change in values is affecting all spheres of life.

Being a function of society, business is no exception. This is why, I believe that business as a concept will change at its very core over the next few decades.  It is simply inevitable considering the fact that the so called Millennials have a completely different understanding of the world.

A study on Millenials conducted by Deloitte every year over the past few years, consistently shows the same results in terms of their values and priorities: they want to work with a purpose and they want to help solve environmental and social issues. Sustainability and social engagement are essential to them.

And since Millenials account for an ever growing part of the active players in societies around the world, you can imagine how their values will change the rules of the game.

Their demands will inevitably transform businesses as they aspire to cater to the needs of a growing proportion of the markets. Making an inconsistent and superficial social effort as it is often the case now, will soon be very insufficient. Millenials will want to see a genuine effort and a real impact. Thus, making a difference to the world will be a matter of corporate survival. Here’s why:

Customers will require it.

In fact, many customers do already require it today but their number is going to grow significantly over the next 5 – 10 years. A survey conducted by Nielsen, where more than 50% of the respondents were Millenials, shows that they represent 51 % of those who will pay extra for sustainable products and 51 % of those who check the packaging for sustainable labelling. And keep in mind, Millenials are the consumers of the future. These are customers that will not be pleased by your company spending whatever amount of money on this or that charity. They take genuine interest in social & environmental issues and they want to see you minimising the damage and maximising  the positive impact you make. In other words, if you want to be competitive, well…. you have to be prepared to make a real difference to communities, to the environment and to the world.

Employees will require it.

Just as an example, by 2020 Millenials will account for 75% of the workforce in the US. This percentage is most likely going to be similar in a number of other countries and the same in all countries sooner or later.  A Towers Perrin’s study on global workforce concluded that a company’s social engagement is the third most important driver of employee engagement overall. And according to a Deloitte survey from a few years ago, 70% of young Millennials, those aged 18 to 26, say a company’s commitment to the community has an influence on their decision to work there. Since talent is one of the main assets to any organisation and the retention of talent, one of the main challenges today (with the average Millenial staying in a job less than 3 years), you can imagine how important being able to respond to those needs for social engagement will be in the upcoming years for companies from all sorts of industries. So if you want to be competitive in the market for talent, you might want to consider what you can offer to a growing population of talent that wants to work for the greater good.

Competition will force it on you.

While the social side of businesses today is an add-on function to many of them, who do it under legal obligation or for marketing purposes, this is not the case with all. Social entrepreneurship is the new hot business format and it seems to be growing. Some of the examples of hugely successful businesses that are built around social impact include, Etsy, Patagonia, Kickstarter, Warby Parker, Seventh Generation, etc. In the US, there has even been created a new corporate entity called a B-corporation that defines for-profit organisations that are also founded with the purpose of making positive impact on society, workers, communities and the environment. These types of enterprises can be sued if they fail to do so.

The CEO of RSF Social Finance, an impact oriented financial services firm in San Francisco, says: “We’re seeing many more entrepreneurs that wouldn’t be in business were it not for the social and environmental aspects of what they’re doing, It’s part of a long-term trend, in my opinion.”

This is no surprise considering that Millenials are as socially and environmentally engaged as they are.

Keep in mind that they are not only the employees of the future but also the leaders of the future and thus the competitors of the future too. As such they will probably steer business to a more social, more responsible, more compassionate form of organisation.

Harvard business professor and economics guru, Michael Porter says that business is now entering into a new stage in its relationship with society. First there was philanthropy: businesses made money but damage too and then spent a part of their profits on good causes. Then there was corporate responsibility where companies tried to decrease their harmful impact. And now companies are starting to work on actual solutions to social and environmental problems.

I believe that this is quite true. There’s a growing aspiration for genuine social impact among the professionals that I work with from all spheres and sizes. It’s not enough for them to make money, they also want to make a difference and leave the world a better place for their children.

If you too want to make your business count for more than just money, don’t hesitate to get in touch. I’d be delighted to help you build a profitable organisation around a bigger purpose that is at its core.