Why Making a Difference Is Key to Future-Proofing Your Organisation

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 because 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.

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. Millennials will want to see a genuine effort and a real impact. Thus, making a difference in the world will be a matter of corporate survival. Here’s why:

Customers will require it.

Many customers do already require it today but their number is going to grow significantly over the next 5 – 10 years. A Nielsen survey reveals that over 50% of Millennials are willing to pay extra for sustainable products. Additionally, 51% actively check product packaging for sustainable labels. 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 care deeply about social and environmental issues. They want to see you reduce harm and create a positive impact. To stay competitive, you must make a meaningful impact. This includes contributing to communities, protecting the environment, and positively influencing 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 several other countries and the same in all countries sooner or later.  A Towers Perrin study on the global workforce identified key drivers of employee engagement. It found that a company’s social engagement ranks as the third most important factor overall. 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 influences their decision to work there.

Competition will force it on you.

The social aspect of businesses is often treated as an additional function, driven by legal obligations or marketing goals. However, this approach does not apply to all businesses. Social entrepreneurship is the new hot business format and it seems to be growing. Examples of highly successful businesses built around social impact include Etsy, Patagonia, and Kickstarter. Other notable names are Warby Parker and Seventh Generation. These companies prioritize social and environmental responsibility alongside profits.

In the US, a new corporate entity called a B-corporation has been created. These for-profit organizations aim to make a positive impact on society, workers, communities, and the environment. These types of enterprises can face lawsuits 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.