A new report finds that there has been a 14% increase in the number of Gen Z and Millennials that expect companies to do more on social issues since 2021 (53% vs 39%).
The Purpose Pulse, which surveyed people in the UK and US, found Gen Z and Millennials are demanding more action amidst low levels of trust. Just under one third of respondents believe business and government can solve today’s big challenges (32% and 29% respectively).
This comes at a time of global conflicts, political shifts and national elections, economic, ethnic and gender inequalities and the world’s temperature edging closer to 1.5C above post-industrial levels.
The findings, published by Purpose Union, Root Cause and the Brand & Reputation Collective, describe Gen Z (16-27 year olds) and Millennials (28-43 year olds) as generations of “hope and concern”. Almost the same number of respondents say they are as worried about the future as they are hopeful (52% and 51% respectively).
Gen Z and Millennials view financial and emotional wellbeing as the biggest challenges in society. The main generational concerns were perceived as the cost of living crisis (84%), mental and emotional health (72%) and home ownership (66%).
Business behaviour influences wallets and work
The research highlights that business ethics increasingly dictate which companies these generations choose to work for and buy from.
Respondents say they prefer brands that support their views on social and environmental issues. Nearly two thirds (63%) say they would choose their products over a similarly-priced competitor, while a majority would recommend the company as a place to work to people close to them (59%) and promote those companies to friends and family (66%).
Conversely, almost half of Gen Z and Millennials say they would boycott the products or services of a company that supported an issue they disagreed with (45%).
Temperatures rise as businesses expected to do more on climate
Gen Z and Millennials think businesses should do more to tackle the challenges presented by climate change. Three fifths (60%) of Gen Z and Millennials say that business leaders are important in tackling the climate crisis, but nearly the same amount (55%) don’t think that businesses are doing enough to address the challenges.
The research highlights that a majority of Gen Z and Millennials are supportive of more government action to address the issue of climate change. This includes prioritising more ambitious emission reduction targets (61%), increasing regulation (58%) and doing more to protect the regions worst affected (57%). More than half also support interventions to ban plastic packaging (54%) and higher taxes on fossil fuel companies (53%).
DEI remains important despite backlash
The report finds that Gen Z and Millennials support DEI initiatives despite attempts to polarise the topic in the UK and US. Nearly three fifths (57%) of Gen Z and Millennials say it is important for organisations to have set targets on race and gender when deciding where to work. Additionally, more than half of these generations think it is important for companies to actively promote diversity and inclusion (51%).
Nearly two thirds (62%) of respondents say that DEI initiatives are important to build trust amongst people like themselves. Another key driver is employee wellbeing; four in five people view it as the best way for companies to build trust (81%).
The support for DEI is driven by ethical reasons above all else. When given a series of options about the most important reasons for organisations to prioritise DEI, the most popular response is that it is the right thing to do (27%). This is compared with just 8% who say it is important because it brings financial benefits.
Daniela Flores, Founding Partner, Purpose Union said:
“Despite recent talk of a purpose backlash, our report shows that there remains strong support for businesses to take a stand on social issues. Gen Z and Millennials are the current and future leaders who will shape our society, and decision-making from purchasing to employment is driven by their values. Whilst we are seeing rollbacks from some businesses in the UK and US, particularly around DEI, in the long-term these actions will only alienate these audiences they are looking to engage.”
Charline Merieau, Founding Partner, Root Cause said:
“To meet the expectations of Millennials and Gen Z, organisations need to prioritise partnerships and coalitions that work towards common goals. Such alliances must convey a cohesive and compelling story that reflects a shared ambition, both verbally and visually. Coalitions that build strong and recognisable brands are the ones that will effectively drive the collective action needed to create lasting change.”
Phil Riggins, Founder, The Brand & Reputation Collective said:
“This year’s Purpose Pulse underscores the powerful shift in expectations from younger generations, who are demanding that businesses step up on social and environmental issues. If business leaders want to earn the trust of the next generation of consumers and employees, they need to realise Gen Z and Millennials see purpose as ‘doing the right thing’ not just about corporate advantage. Businesses that recognize this will be better positioned to drive both social impact and long-term success.”
The full report can be downloaded here: https://www.thepurposepulse.com/