Understanding the Millennial Manifesto for Business

Understanding the Millennial Manifesto for Business #BEMOREKANE

THIS IS KANE KANE IS A MILLENNIAL

75%

BY 2025

75%

of the working population will be millennials

68%

93%

say: “creating change in the world is a personal goal of mine that I actively pursue.” (vs. 42% of baby boomers)

/mɪˈlɛnɪəl/ Millennials are people who were under 18 at the turn of the millennium. This year (2019), a millennial is someone between the ages of 19-36.

of millennials in this world would take a pay cut to work for a socially responsible company.

76%

consider a company’s social and environmental commitments before deciding where to work.

want to buy brands that have a ‘Purpose beyond product’.

87%

believe the success of a business should be measured in terms of more than just its financial performance.

3

A NEW GENERATION IS TAKING HOLD OF BUSINESS. THEY ARE THE MILLENNIALS, AND IN LESS THAN SEVEN YEARS’ TIME THEY WILL MAKE UP 75% OF THE WORLD’S WORKING POPULATION.

But their rise to power isn’t just a generational shift.

Millennials are angry. They won’t have pensions, won’t have houses and will earn less than those before them.

The ambitious environmental change their parents’ generation promised hasn’t fully materialised. The difference is, millennials are committed to doing something about it.

They’re the grassroot generation driving social change – and this desire to make the world a better place is mirrored in their expectations of businesses.

Three quarters would take a pay cut to work at a purposeful business.

The overwhelming majority (93%) choose products based on whether they are being sold by a purposeful company.

In Part A, we introduce you to the worlds most talked about generation - the millennials.

In the final section, Part C, we show how businesses can start being purposeful tomorrow, next month and in a year.

When Governments are receding their responsibilities, from climate change to caring for their communities, millennials expect companies to say: we’re still in.

Who are they? How do they think? What has shaped them? How are they challenging businesses to act responsibly? Find answers to every question you’ve ever had about millennials here through fun factual lists that you can easily pull out for your presentation.

You can use the practical policies and tips in this section to inspire new ways for you to start, build on or redefine your corporate purpose. From how to avoid purpose-washing to taking a stand on the world’s biggest problem according to millennials – climate change.

In Part B, we move onto the why to purpose. Here, we arm you with facts that speak to your boardroom.

Read this book once all together, and then use the lists and practical tips again and again for your presentations, to craft your purposeful communications strategy, or to inspire corporate change.

And while this desire to change the world for better isn’t unique to millennials, unlike previous generations they’ve made purpose over profits cool.

Turning a blind eye is no longer a viable option.

That’s why we’ve created this booklet; to help you answer the millennial manifesto.

Having an authentic purpose can require re-engineering your business and making short-term sacrifices, but in the long-term we show how adding a ‘why’ to your business makes sense to your bottom line as well.

We believe that by understanding this generation, business will become better.

5

CONTENTS 6

PART A: MEET KANE, YOUR EVERYDAY MILLENNIAL

26 PART B:

THE BUSINESS CASE FOR PURPOSE

10

Seven things you need to know about Kane today

30

CSR is dead. Millennials killed it

12

Kane and business: introducing the millennial authenticity gap

32

What’s the business case for purpose?

14

Seven ways Kane is changing expectations of business

34

Eight purposeful facts to convince your boardroom

20

Why does Kane really buy things? Here are five reasons

36

You’re not alone: case studies

20

Millennial employees: what does Kane want in a job?

22

Kane and social issues: the generation driving change

24

The 10 most critical problems in the world according to Kane

38 PART C:

HERE’S HOW YOU CAN ANSWER THE MILLENNIAL MANIFESTO WITH PURPOSE

42

How can we create an authentic purpose?

46

The 5 rules for engaging millennials on climate

48

New rules: here’s what you can do now

50

10 questions to ask your company before you take a stand

52

10 innovations on purposeful business: here’s how you can lead

58

Find out more

7

PART

A

MEET KANE, YOUR EVERYDAY MILLENNIAL 9

PART A: MEET KANE, YOUR EVERYDAY MILLENNIAL

Two fundamentals have shaped the way millennials feel about business, leadership and the world in general.

Firstly, the economic context in which they entered early adulthood, characterised by uncertainty and stagnation, instilled a sense of pessimism among Western millennials which is much higher than previous generations.

They’re the first generation to be less well-off than their parents, yet one in five will live to 100.

At the same time, smartphones, augmented reality and social media has radically disrupted the way they communicate and access information about people and brands.

They have a “get-right-to-the-point” attitude, demanding speed and convenience, yet at the same time crave social interaction and belonging within a community.

The following chapter provides a snapshot on millennials – who they are, how they see business, and the social issues they care about – to help you understand the why behind their expectations.

11

PART A: MEET KANE, YOUR EVERYDAY MILLENNIAL

1

2

3

4

5

They’re more diverse.

For example, 43% of US millennials are non-white.c

As well as more educated with an increase of more than 20% in tertiary education across OECD countries.c

Want to live in a fair world and have a sense of responsibility in making it a better place.

Millennials first outnumbered baby boomers 26 years ago; but their coming of age wasn’t just a generational shift.

THINGS YOU NEED TO KNOW ABOUT KANE TODAY

6 Feel their voice matters. yet over half of young people feel their views are not heard before important decisions are taken (55.9%) d

2 billion millennials make up 24% of the worlds population.a

Have a combined purchasing power of nearly $2.5 trillion.b

e.g. When asked who has the greatest responsibility in improving the world, the first choice is “individuals” (34.2%).d

7 They’re social creatures - for example almost 50% of their disposable income is spent on leisure.e

MILLENNIALS WANT YOUR BUSINESS TO #BEMOREKANE.

13

PART A: MEET KANE, YOUR EVERYDAY MILLENNIAL

Kane & Business:

INTRODUCING THE MILLENNIAL AUTHENTICITY GAP Millennials believe business has the power to fix the world, but currently it isn’t answering their demands to act responsibility. We call this the millennial authenticity gap.

Millennials want to relate to something more intangible than just products and services. They want to feel good whilst consuming or working, knowing that there is also some greater purpose behind their preferred brand, and that they belong to a community sharing similar positive values.

It’s no longer about what you do but why you do it.

Businesses that adopt a purpose which goes beyond delivering profits are in a strong position to win the millennial manifesto.

Whilst those who fail to look beyond the bottom line risk reputational damage, particularly in a digital world where the voice of the individual has been amplified.

15

PART A: MEET KANE, YOUR EVERYDAY MILLENNIAL

3 IN 4

One. The corporate world is not answering millennials’ demands to act responsibly.f

Two.

think businesses around the world focus on their own agendas rather than considering the wider society.

≈2 IN 3

say companies have no ambition beyond wanting to make money.

<1/2

believe business leaders are committed to helping improve society. In 2017, more than three in five did.

3 IN 4

Business has the power to fix the world.f

think businesses have the potential to help solve society’s economic, environmental and social challenges.

Three.

SEVEN WAYS KANE IS CHANGING EXPECTATIONS ON BUSINESS

Their checklist for deciding whether a company is responsible includes...f

59.6%

40.6%

38.4%

Sustainability/ CSR reports

Media reports

Insider stories

36.1%

35.7%

Industry reports

Annual reports

17

PART A: MEET KANE, YOUR EVERYDAY MILLENNIAL

Four.

Five.

Six.

Millennials and post-millennials believe success should be measured beyond financial performancef

More than half are likely to take their business to a competitor if they disagree with a company’s position on an issue that is important to them.g

Ethnic, gender, and LGBTQ diversity and inclusion is important for millennials, but they don’t think businesses are serious about addressing it.

83%

80%

Millennials

Gen Z

57%

2 IN 3

Diversity & inclusion is extremely / very important to themg

74%

73%

64%

Ethnic diversity

gender diversity

LGBTQ diversity

Seven.

They are driving the ESG trend.

h

Millennials are

2x

as likely as the overall investor population to invest in companies targeting ESG.

Believe their investment can create

POSITIVE CHANGE.

believe only formal legislation can adequately advance workplace diversity.f

2 IN 3 believe leaders simply pay “lip service” to diversity and inclusion.f

3 IN 4

say their investments can influence climate change.

84%

say their investments can help lift people out of poverty.

19

PART A: MEET KANE, YOUR EVERYDAY MILLENNIAL

1

2

3

Community.

CEO activism.

Shopping for change.

millennials say they would buy a product / service simply for the experience of being part of the community built around it, like My Starbucks Idea and Nike’s #LDNR campaign. That’s 18% more likely than the average consumer population.i

say they are more likely to buy from companies led by CEO activists.j

of global millennials are willing to pay extra for a sustainable product.

In comparison, two in three global consumers are willing to pay extra for green products.k

1 IN 3

THINGS THAT MAKE KANE BUY FROM YOU

51%

4

5

Peer to peer recommendations.

Online.

Millennials are more than twice as likely to use a mobile device to read user reviews and research products while shopping than non-millennials (50% and 21% respectively).l

of millennials say their favourite brand plays an integral part in their online life and experience.

That’s 18% higher that the average consumer population.i

2X

73%

37%

21

PART A: MEET KANE, YOUR EVERYDAY MILLENNIAL

3

TOP

criteria when considering job opportunitiesd

MILLENNIAL EMPLOYEES:

WHAT DOES KANE WANT IN A JOB?

49.3%

Salary/financial compensation

40.6%

OTHER CONSIDERATIONS Community

Diversity & Inclusion

want the people they work with to function as their second family.j

who believe their senior management teams are diverse see their working environments as motivating and stimulating. This figure drops to 43% for those who don’t see their leadership as diverse.f

Profits with a purpose

Industry 4.0

say their organisations prioritise the pursuit of profit.

This is significantly higher among those hoping to leave within two years (57%), than those intending to stay for more than 5 years (42%).f

of millennials intending to stay at their current organisations for at least another five years say they receive help with Industry 4.0. Among those intending to leave within two years, the figure drops to 28%.f

70% 51%

69%

46%

Sense of purpose/ impact on society

THE NEW SOCIAL CONTRACT BETWEEN MILLENNIALS AND EMPLOYERS

40%

Growth/career advancement

The contract between the organisation and the individual is beginning to change. The old contract looked like this: ‘I work to buy stuff that makes me happy.’ The contract is negotiated by tangible assets. The new contract will be, ‘I work to make me happy’. We have to think about work as being the thing, not the money you get from it. I don’t see many companies realising how profound that change will be.”

- Lynda Gratton, Professor of Management Practice at LBS

23

PART A: MEET KANE, YOUR EVERYDAY MILLENNIAL

KANE & SOCIAL ISSUES

The generation driving change.

Millennials are not afraid to stand up for what they believe in – more than 50% are self-proclaimed activists.j Having grown up with social media, they can also drive awareness and influence change through their smartphones with a level of comfort and speed that has never been seen before.

From Laura Bates’ #everyday-sexism Project and Chidera Eggerue’s #SaggybBoobsMatter, they are the generation driving grassroot social change.

Now, they’re demanding authenticity and transparency from businesses, and expect brands to act on issues that are important to them.

Transparency is no longer just about how you do business, where and with whom; it’s now about what position your business takes on difficult social issues.

In the millennial workforce generation, social issues will define the purposeful company.

Brands who take a stand and do so in an audacious and authentic way will win the hearts of this important generation.

Nike’s Colin Kaepernick campaign is a powerful example - despite controversy the campaign reportedly increased the brand’s value by $6 billion in three weeks.

47%THEY’RE Research has found

of millennials believe CEOs have a responsibility to speak up about issues that are important to society.j

And prefer to engage in a cause campaign by encouraging others to support it (30% v 22% non-millennials).l

SLACTIVISTS

62%

They want business to take action on issues important to them.

of millennials say this is important in comparison to 48% of the general population.g

THE NEW MILLENNIAL CEO MANDATE

Today CEOs need to stand up not just for their shareholders, but their employees, their customers, their partners, the community, the environment, schools, everybody.”

- Marc Benioff, Founder, Chairman and co-CEO of Salesforce.com

25

PART A: MEET KANE, YOUR EVERYDAY MILLENNIAL

1

2

48.8%

38.9%

30.8%

Climate change / destruction of nature

Large scale conflict / wars

Inequality (income, discrimination)

4

5

6

29.9%

MOST CRITICAL PROBLEMS IN THE WORLD ACCORDING TO KANEd

3

23.9%

22.7%

Poverty

Religious conflicts

Government accountability and transparency / corruption

7

8

9

18.2%

Food and water security

15.9%

Lack of education

14.1%

Safety / security wellbeing

10

12.1%

Lack of economic opportunity and unemployment

27

PART

B

THE BUSINESS CASE FOR PURPOSE 29

PART B: THE BUSINESS CASE FOR PURPOSE

BUSINESSES HAVE GREAT POWER, BUT NEED GREAT RESPONSIBILITY. When companies can exert more financial, economic and political influence than democratically elected governments, their responsibility in this world is under scrutiny.

Coupled with the rise in the millennial workforce, businesses need to start looking beyond the what they do and talk about the why.

In other words, they need to (re)discover, (re)define, and deliver their purpose. This can sometimes mean making shortterm sacrifices, but there are 100s of books, studies and case studies which demonstrate how powerful purpose can be for business in the long-term.

For example, in an op-ed explaining the demands of implementing Unilever’s commitment to ‘making sustainable living commonplace,’ Paul Polman wrote:

“Because it takes a longer-term operating model to address these issues, I decided we would stop full reporting on a quarterly basis. Our share price went down 8% when we announced the ending of guidance…But that didn’t bother me too much; my stance was that in the longer term, the company’s true performance would be reflected in the share price anyway.”

Paul Polman Seven years after rediscovering its purpose Unilever’s share price had more than doubled.

This is what this section is all about – showing how adding a “why” to your business also makes sense to your bottom line.

31

PART B: THE BUSINESS CASE FOR PURPOSE

Millennials won’t give you credit for banning plastic straws or cups. They expect it.

In the age of millennials, profit without prosperity won’t cut it.

Profit without purpose isn’t enough.

They won’t want to work for you if you think responsible business is just reducing your carbon emissions by 20% by 2020. It’s clever and alliterative, but it’s not enough.

It’s no longer enough to just sell. You have to sell your ‘why’ and this is at the heart of purpose.

For the millennial generation, CSR is dead. Sustainability is just the starting point, it’s not the goal.

If all of these ‘sins’ were minus points on a numerical scale, we’d only be moving towards zero.

CSR IS DEAD.

Sustainable, responsible business is the zero point.

If companies didn’t wreck the world with coal, we’d be at the zero point. If all businesses became carbon neutral, we’d be at the zero point. If half of CEOs were female, we’d be at the zero point.

It’s where the ‘what’s good for us’ and the ‘what’s good for business’ align much more closely.

A purposeful business doesn’t just ask itself about what it does with the money it makes, it asks itself how it makes profit so it creates positive value, for all stakeholders.

In short, its the reason why you make / deliver something which is more than just making money.

AND WHAT THE EXPERTS SAY

“So that’s sort of CSR where you’ve done something wrong and now you’re trying to right it and get some sort of extra bonus for righting it. It doesn’t seem to work for most people I think.”

“While business has made a commitment to becoming more socially responsible, most organisations view this role in hygiene terms. It is about making sure they don’t do bad stuff – or don’t get caught doing bad stuff. But the smart companies are waking up to the fact that the future of business is not about minimizing the bad things it does (corporate social responsibility) but maximizing the good it does.”

- Chris, 28, millennial focus group

- David Gershon, Empowerment Institute

HOW KANE EXPLAINS CSR

33

PART B: THE BUSINESS CASE FOR PURPOSE

THE PURPOSEFUL BUSINESS OPPORTUNITY

WHAT’S THE BUSINESS CASE FOR PURPOSE? It’s simple it builds brand loyalty.

It rewards and retains the best people.

It builds trust.

Nike has been a company much vaunted and lauded in equal breath.

But it is one that understands the millennial generation.

Look at what the company has done in building city communities through its ‘I’m a LNDR’ campaign, or its ‘Equality Wins’ campaign on LGBT rights.

And what has this done for Nike’s share price in the past five years?

It has doubled it.

Purpose gets and keeps the best people.

A Danish think tank – the Happiness Research Institute – carries out a yearly survey of the happiness and well-being of professionals.

Can you guess what the number one source of contentedness at work is?

More so than having a good boss?

It’s the knowledge that you’re working for a company with a sense of purpose.

Last but by no means least: it keeps you safe. As a company at least.

To illustrate this point let’s look at the fortunes of Facebook.

If knowledge is the new economy, then information is its currency, and the public want it in as unadulterated, authentic flavour as it comes. We don’t just want to know about what the company does.

We want to know what the company thinks on important issues.

For example, our own Authenticity Research for 2018 tells us that 60 per cent of UK consumers believe it is important for companies to express their views on a range of social issues from MeToo to Brexit.

“Business needs to be part of the solution, not the problem. We cannot be bystanders. We need to be a giver, not a taker in a society that gives us life in the first place. It is – after all - not possible to have a strong, functioning business in a world of increasing inequality, poverty and climate change. The good thing is that, next to our moral obligations to address the global challenges, it is also an enormous business opportunity. That’s the equally exciting part.”

Paul Polman Chair of the International Chamber of Commerce, The B Team and Vice-Chair of the U.N. Global Compact.

Also ex-CEO of Unilever

35

PART B: THE BUSINESS CASE FOR PURPOSE

PURPOSEFUL FACTS TO CONVINCE YOUR BOARDROOM

85%

83%

>

of companies with a strong sense of purpose are optimistic about their prospects and ability to stay ahead of industry disruptions.n

of global CEOs say lack of trust in business is a concern.o

73%

60%

80%

55%

$22.9

of companies with a clearly articulated purpose showed growth in the past year.m

of employees who say they work for a “purpose-driven” company feel engaged with their work, compared to just 23% of those who don’t.n

of senior decision makers at FTSE 100s see investing in purposeful business critical to future growth.p

of UK consumers say that even if they disagree with a company’s position, they believe it is important for companies to express their views on social, environmental and political issues.g

50%

of UK consumers have stopped using a product or service because a company’s response to an issue did not support their view.g

TRILLION of assets are under management from investors that want to see companies act on their environmental and social impact.q

37

PART B: THE BUSINESS CASE FOR PURPOSE

YOU’RE NOT ALONE…

Patagonia’s sales increased by almost 1/3rd to $543 million one year after the brand launched its “don’t buy this jacket” campaign.t

Danone pledged for their global business to become a B-Corp by 2030 ( the highest standards of verified social and environmental performance, transparency and accountability).

The company’s credo informs its values-based culture which for many years has been about having a “purpose beyond profits”.

Thomson Reuters Foundation decided to make LGBT-representative news a core part of their offering by launching Openly – the world’s first LGBT news hub.

M&S saved over £750 million in costs through efficiencies (e.g. by using less energy, reducing packaging) as part of its purposeful programme Plan A (2007-2017).w

Has championed the future health of people now, giving a voice to today’s kids on the healthcare systems of tomorrow through #YoungWEF

39

PART

ANSWERING THE MILLENNIAL MANIFESTO WITH PURPOSE 41

PART C: ANSWERING THE MILLENNIAL MANIFESTO WITH PURPOSE

WHILE THERE IS A CLEAR COMMERCIAL VALUE IN BUSINESSES ADOPTING A PURPOSE, A SUCCESSFUL APPROACH MUST DO MORE THAN SIMPLY PAY LIP-SERVICE TO SOCIAL CAUSES.

To use purpose simply as a marketing tool to boost short-term returns is a risky strategy.

Disingenuous companies found guilty of “purposewashing” face long term reputational damage and could also loose customers.

Our 2018 Authentic Insights report shows that nine in ten UK consumers think that in the past year companies have taken advantage of social, cultural or political issues solely for their own benefit.

As a result, almost two-thirds felt less favourable towards them.

In this last section, we explore how your business can build an authentic purpose which will win the hearts and minds of the millennial generation and beyond.

Read ahead to find out what a manifesto for purposeful business looks like.

43

PART C: ANSWERING THE MILLENNIAL MANIFESTO WITH PURPOSE

Purpose is not a statement or a tagline.

It’s not a CEO’s speech. Although that’s where it can start.

It’s the why to your what.

HOW CAN WE CREATE AN AUTHENTIC PURPOSE?

And your millennial employees will see through anything else.

If employees are axiomatic to purpose then why aren’t we asking them what it is? CEOs would get more clarity from the IT engineer, the sales manager or the graduate, than asking pricey consultants.

When asked from whom they most trusted information about a company, only 12% of people said the boss.

More than three times that trust employees at the company. Those we trust most are the people we personally know at the company.

Why is this important? If you want to run a company that people trust it needs to be built from the bottom up. Which is why when it comes to consumers and clients believing a company is purposeful, the messenger is, in many respects, more important than the message itself.

45

PART C: ANSWERING THE MILLENNIAL MANIFESTO WITH PURPOSE

ASK LEAD DISCUSS

DEMOCRATISING PURPOSE Purpose can’t be a top-down management edict. And it can’t be conjured in a meeting room by expensive suits and a praetorian guard of executives.People can’t be told what their values are and purpose is, which makes listening to your employees and advocating for them all the more important.

Like many big commitments it has to have the full force of the C-suite behind it, but it can’t just be the executive talking about it. Without leadership driving purpose, it is impossible to maintain. And without it being embedded throughout the organisation, it may be impossible to sustain.

1 2 3

Ask. It starts with an employee survey and focus groups around three areas: shared values, their motivations, your vision.

Empower your employees to talk. Tear up the 90-page employee communications handbook. If a 22-year-old who works in your Norwich operations centre can answer the three purpose questions, let them! Not just in the pub, but through their Facebook, Instagram, Twitter and so on. Your customers will believe you more.

Lead.

CREATE YOUR PURPOSE CHAMPIONS

A simple series of workshops with key senior decision makers will help align employee feedback with the executive’s vision.

Discuss.

Discuss to test. Make this part of team leader conversations and help employees buy into the purpose.

“Every organization has a pool of change agents that usually goes untapped.”

Robert Quinn, University of Michigan’s Ross School of Business, and Anjan Thakor, Olin Business School at Washington University

47

DISCUSS LEAD ASK

PART C: ANSWERING THE MILLENNIAL MANIFESTO WITH PURPOSE

1

Measure your impact not your outcome.

THE FIVE RULES FOR ENGAGING MILLENNIALS ON CLIMATE

Targets are only good if they lead to action. And action is only good enough when it creates change.

Science based targets, externally validated by a credible third party like the Carbon Trust, for every company, will help drive change.

2

Behaviour change is not just about changing your behaviour.

Managing your own footprint won’t stop climate change. Creating behaviour change amongst your employees and using your brand power with your consumers just might. Want your employees to use less energy?

Buy them a HIVE for Christmas and subsidise them switching to a 100% renewable electricity provider.

3

Realise the business case for action.

According to our own Authentic Insight research, four in five UK consumers have stopped using a product or service because a company’s response to an issue did not support their view. Campaign for climate action – your consumers will reward you for it.

4

5

The bar of ambition with 1.5°C commitments needs collaboration with other corporates to drive momentum behind this important movement. This will drive a political will to build on the achievements of Paris. And stick two fingers up to Trump.

Showing how commitments will help countries meet targets is critical, but we are missing an opportunity to show how commitments can help cities do the same, particularly through smart city technologies. Mayors will be increasingly important on the global climate change stage and helping deliver their agendas will be equally as important for delivering progress.

There’s no I in team.

Localise.

49

10 PART C: ANSWERING THE MILLENNIAL MANIFESTO WITH PURPOSE

QUESTIONS TO ASK YOUR COMPANY BEFORE YOU TAKE A STAND

4.

8.

Employees are not only the lifeblood of a company, they’re your most important stakeholders. Have you done internal focus group testing? Do millennial employees–one of the most socially progressive generations–get and support what you’re trying to do?

You wouldn’t launch a new product without asking the experts, so don’t wade into an issue without consulting campaigners who have worked on it for years.

Do colleagues support this?

5.

Does the executive leadership of my firm believe in this?

3.

If you’re serious about creating change, the CEO must be the driving force. They don’t need to be the face of the campaign, but they do need to be able to justify it to your investors.

Before you even get the pricey consultants in, ask a simple question: Did a bunch of male executives push this through, backed by some ad-bros professing it was “zeitgeisty” [not a word] and would help brand equity? Are the people in the decision-making process representative of the people you’re targeting? I can’t speak for the creatives behind the Kendall Jenner Pepsi ad, but I would wager that few had gone to a demonstration and fewer still had been victims of police racism.

And can what we do as a business to materially create impact? If saying something creates real and positive change, then say it. By stopping, or by starting to do something, you can help deliver on your promise. Show that you care, don’t just tell people you do.

6.

2.

Is taking a stand on this issue in tune with your purpose?

Google’s stated purpose is to “organize the world’s information and make it universally accessible.” The company elected not to enter the Chinese market, for that very reason, despite pressure from investors (though that commitment recently wavered).

Will the action materially create impact on the issue?

For the impact rules, consider Iceland’s Rang-Tan ad. In it, the progressive retailer committed to only use sustainable palm oil in its products–deforestation in traditional palm oil production has reportedly pushed orangutans to the brink of extinction. It called for its peers to do the same. And it worked in collaboration with Greenpeace, a collaboration not without risks, to produce an ad raising awareness of these endangered great apes. How the brand delivers on its promise in light of recent news remains to be seen. But the combination of commitment and the act of speaking out has created a positive impact.

9.

Are we going to be doing this in a years’ time?

1.

Have you avoided white male groupthink?

Do we have a partner to create impact?

Are we calling for action?

What are you asking people to do about the issue? When Ben and Jerry’s backed gay marriage in Australia, they wanted their customers to do the same. So much so that they refused to serve two scoops of the same flavor together until gay marriage was allowed.

7.

Is my own house in order?

If you’re launching a campaign to highlight sexism or toxic masculinity in Europe, you better make damned sure you’re not using images of size zero women in sexually suggestive poses in your ads in China.

Change comes slowly, and is not caused by an ad campaign or a single speech. The success of Heineken’s #OpenYourWorld campaign, to bring people with different opinions together after a divisive battle over Brexit in England, will be judged on exactly that–how many people they have brought together.

10.

Would you keep the campaign if there’s a backlash?

This is the most difficult question. No stand, no matter how well planned, will be without controversy or negative reaction.

And that makes the money men jittery. It’s likely that your share price will be affected, at least temporarily. But consider this. When backing Colin Kaepernick, Nike’s share price took a multibillion-dollar hit, falling 3% in the first few days. Three weeks later Nike’s share price reached a record high, online sales grew more than 30%, and the brand was valued at $6 billion. The lawyers and the financial advisers might have killed the campaign in its infancy had they known what would happen. But Nike’s customers wanted it, the company stuck with it, and they have been rewarded for their bravery.

51

PART C: ANSWERING THE MILLENNIAL MANIFESTO WITH PURPOSE

1

Create a shadow board If you have no women on your board, no gay or Asian men, no one from a working-class background; if you’re nervous about how investors will react to quotas, create a shadow board with the richness of this diversity. And get them to advise the CEO directly. Your decision-making will be nourished from it.

2

The 4.5-day week

INNOVATIONS THAT ARE ALREADY HAPPENING RIGHT NOW

In 2017 New Zealand firm Perpetual Guardian paid all their employees a full five-day week salary, but reduced the number of working days in a week from 5 to 4. What happened? Employee engagement and job satisfaction went up by 5% and 4% respectively, while employee loyalty improved by 20%. Imagine if we followed suit, but added half a day volunteering time onto the 4-day week and gave employees the choice of where and how to use it? If 10% of Britain’s working population decided to devote that time to spending it with people over the age of 70, lonely OAPs would have someone with them for an additional 2 hours a day.

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PART C: ANSWERING THE MILLENNIAL MANIFESTO WITH PURPOSE

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Become socially aware 5 3

Bonformance CEO bonuses can, if we decided, be tied to social performance. Or non-financial goals. Or salary packages can be docked for worker accidents, oil spills or lack of performance on the SDGs. Create incentives, including tying executive remuneration to the delivery of purpose and transparent annual reports to get your business to move faster.

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Get rid of your KFCs If there are square bits of your business that can’t fit into the circular, purposeful holes, don’t be afraid to have a conversation about them.

As President of PepsiCo, Indra Nooyi divested KFC as it didn’t match with her vision to provide more healthy, nourishing food for consumers. If PepsiCo can do it, so can you.

Monthly listening tour A Harvard Business Review surveyed CEO time over a tenyear period. It found bosses spend less than 2% annually talking to their employees. If employees are the lifeblood of the organisation then CEOs need to get out more. Get out of the boardroom and listen. Talk with Sita in operations and John in finance. Your employees are just as important as your investors, more so, even. Engaged employees will be the vanguard of selling your company’s why – not just its what.

60% of consumers will stop buying from a company if they disagree with their stance on a social issue. What’s your process for dealing with public pressure on an issue? Or calls to engage with movements like #MeToo, Brexit or BlackLivesMatter? Outlining a process, and measuring its success will do two things: enable you to navigate the complex, myriad demands, and assure your shareholders and investors that you can. It’s business-smart.

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PART C: ANSWERING THE MILLENNIAL MANIFESTO WITH PURPOSE

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Think more than just your footprint Managing your own business footprint is just business as usual. Creating behaviour change with your employees and your consumers catapults you into the purposeful category.

If avoiding catastrophic climate change means people using energy smarter at home, why not give all your employees a HIVE for Christmas?

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Full frontal nudity Or full transparency for the faint hearted. If investors are asking you for more information on the impact of your SDG, ESG, CSR, CSV [insert any other acronyms you want] initiatives, then start measuring it and give it to them. If they need to know what the social return on investment (SROI) on a community programme is to determine whether you’re a solid and safe investment, why not? But transparency goes further.

The real impact you can have as a business is around sharing knowledge and data. Imagine if Uber shared all its customer journey data (anonymised) with Transport for London (TfL)?

The positive effect that would have on traffic, congestion, transport planning and pollution would really shake things up.

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It doesn’t end with the Annual Report Being more transparent means doing it more regularly. Not just once a year. Millennials don’t read annual reports. But we know they study the impact your company is having on the environment and communities. Bean counters in the City want to know your financial and ESG performance on a routine basis. Work out a better and more regular way to disclose and communicate information.

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Purposeful profits Growing for growth’s sake cannot be purposeful. Growth to increase prosperity can be. When your CFO tells you revenues increased by 15% last year – ask why? To pay shareholders, or to create jobs? And why? Annual Corporate Reports (if they are to stay) shouldn’t just focus on the output of a company’s growth or profit, it should also account for the outcomes they create. And for that, we need a whole new non-financial measurement system for companies.

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REFERENCES a. Nielsen. (2016, July 9). The Keys to Unlocking the Millennial Mindset. Retrieved from Nielsen: https://www.nielsen.com/us/ en/insights/news/2016/keys-to-unlocking-the-millennial-mindset. html

p. FleishmanHillard Fishburn. (2018, July). FHF Purpose Trends . Retrieved from FleishmanHillard Fishburn: https://fhflondon. co.uk/2018/07/is-csr-slowly-dying/fhf-purpose-trendsinfographic_v6/

b. Capital Group. (2016). The Changing Face of the Global Consumer. American Funds.

q. Pensions and Lifetime Savings Association. (2018). Impact Investing. Pensions and Lifetime Savings Association.

c. Gapper, J. (2018, June 6). How millennials became the world’s most powerful consumers. Retrieved from Financial Times: https://www.ft.com/content/194cd1c8-6583-11e8-a39d4df188287fff

r. Macrotrends. (2019 , January 14). Starbucks - 27 Year Stock Price History | SBUX. Retrieved from Macrotrends: https://www. macrotrends.net/stocks/charts/SBUX/starbucks/stock-pricehistory

d. World Economic Forum. (2017). Global Shapers Survey. World Economic Forum.

s. Sherman, L. (2017, April 3). Corporate Mission Statements Don’t Really Matter, Unless You Want To Be A Great Leader. Retrieved from Forbes: https://www.forbes.com/sites/ lensherman/2017/04/03/corporate-mission-statementsdont-really-matter-unless-you-want-to-be-a-greatleader/#5c98c7df2246

e. CBRE . (2016). Millennials: Myths and Realities. CBRE Research. f. Deloitte . (2018). Deloitte Millennial Survey. Deloitte. g. FleishmanHillard Fishburn. (2018). The Dying Days of Spin: An Authentic Insights Report. FleishmanHillard Fishburn. h. Morgan Stanley. (2017, August 9). Millennials Drive Growth in Sustainable Investing. Retrieved from Morgan Stanley: https:// www.morganstanley.com/ideas/sustainable-socially-responsibleinvesting-millennials-drive-growth i.

Global Web Index (2018)

j.

CANVASS 8 (2018)

t. Stock, K. (2013, August 28). Patagonia’s ‘Buy Less’ Plea Spurs More Buying. Retrieved from Bloomberg: https://www. bloomberg.com/news/articles/2013-08-28/patagonias-buy-lessplea-spurs-more-buying u. Unilever. (2018, May 10). Unilever’s Sustainable Living Plan continues to fuel growth. Retrieved from Unilever: https://www. unilever.com/news/press-releases/2018/unilevers-sustainableliving-plan-continues-to-fuel-growth.html

k. Nielsen. (2015, October 12). Consumer-goods’ brands that demonstrate commitment to sustainability outperform those that don’t. Retrieved from Nielsen: https://www.nielsen.com/us/en/ press-room/2015/consumer-goods-brands-that-demonstratecommitment-to-sustainability-outperform.html

v. Reints, R. (2018, September 23). Colin Kaepernick Pushes Nike’s Market Value Up $6 Billion, to an All-Time High. Retrieved from Fortune: https://www.unilever.com/news/press-releases/2017/ unilevers-sustainable-living-brands-continue-to-drive-higherrates-of-growth.html

l.

w. M&S. (2017, June 1). M&S ANNOUNCES MAJOR NEW COMMUNITY TRANSFORMATION PROGRAMME. Retrieved from M&S: https://corporate.marksandspencer.com/media/ press-releases/2017/new-community-transformation-programme

The Boston Consulting Group. (2012). The Millennial Consumer: Debunking Stereotypes. The Boston Consulting Group.

m. LinkedIn. (2016). Purpose at Work. LinkedIn. n. Deloitte. (2014). Culture of Purpose - Building business confidence; driving growth. Deloitte. o. PwC. (2017). 20th CEO Survey. PwC.

Want to know more about what millennials think?

Watch the video here: https://bit.ly/2YoxqvK

Some of the companies referenced are clients of FleishmanHillard Fishburn.

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PLEASE GET IN TOUCH purposefulbusiness@fhflondon.co.uk