by Paul A. Argenti
Corporate social responsibility has been added to the growing list of demands that investors, customers and employees present to companies.
In 2015, 81 percent of Fortune 500 companies published sustainability reports, up from 20 percent in 2011, according to a report released by the Governance & Accountability Institute in June. Companies are publicizing their ethical standards and responsibility efforts, and consumers are punishing companies that appear to fall short. Even as headlines proclaim “greed is back,” companies are investing time and resources into instituting more ethical practices.
Why is there such dissonance?
As is so often the case these days, businesses are taking cues from millennials. This generation (currently 18-35 years old) represents more than a quarter of the U.S. workforce — and this amount is expected to grow to over 50 percent by 2020. They will account for a third of retail sales in the same year. Businesses not thinking about how to interact with this generation are in serious trouble.
So how do millennials think about corporate social responsibility — or CSR?
A 2014 Nielsen survey showed that millennials are significantly more responsive to CSR in both consumption as well as employment decisions. Of those surveyed who would pay a premium for sustainable products, verify packaging and choose a company with a higher CSR reputation as employer, about half were millennials. These millennials are choosing to spend their resources — be it time or money — on organizations that appear to represent a set of values.
With their significant buying power, millennials are placing huge demands on companies to respond with genuine CSR strategies.
Where can companies start in building out this strategy?
