3 Reasons Purpose-Driven Businesses Resonate with Generation Z
If you’re a business seeking new employees or new customers from Generation Z, it makes sense to understand some of their core beliefs and behaviors. Here we discuss 3.
As Gen Z enters the workforce, they are increasingly inclined to support purpose-driven businesses. This can be seen through their purchasing decisions as well as their choice to pursue careers that align with their values. A purpose-driven business prioritizes making a positive impact on the environment and society rather than solely focusing on profit. Let’s explore the three key motivations behind Gen Z’s preference for purpose-driven organizations and why they appeal to younger generations.
Altruistic work
Generation Z (those born between 1997 - 2012) is uniquely positioned to be aware of environmental issues and social concerns, largely due to their upbringing alongside technology and instant access to information. Because of this, Gen Z is highly conscious of the impact their actions have on the planet, including their carbon footprint and fossil fuel emissions.
The concept of altruistic work values is particularly relevant here. Gen Z often prioritizes positively impacting society and is drawn to careers that align with their values, even if they may offer lower economic rewards. According to a recent study, “altruistic values are espoused by an individual who supports the public service…[and] who are stimulated to have a career within the public service.” This indicates that individuals who share these same values are often motivated toward careers that positively affect the health of our planet and the greater good.
2. Environmental concerns
Having grown up with scientific data at their fingertips, Generation Z has paid close attention to the conversation surrounding global warming in the media. They are constantly bombarded with information from news articles, documentaries, or social media posts highlighting the urgency of environmental issues. Whether it is discussions about rising sea levels, deforestation, or the impact of plastic pollution on marine life, it’s evident that Gen Z is deeply concerned about the future of the planet, more so than other generations. According to a recent study, “It was found that environmental concerns positively influence the willingness to pay more for green products and services by consumers of Generation Z.” This suggests that Gen Z is not only passively concerned about environmental issues, but is actively responding to them. Rather than focusing on the short-term costs, they recognize their consumer choices affect the planet's future and are willing to make financial sacrifices accordingly. This mindset reflects a growing awareness and commitment to sustainability in Gen Z.
3. Diversity, Equity and Inclusion and Social Justice
As stated above, Gen Z prioritizes supporting businesses that align with their values, which also concerns issues of social justice and Diversity, Equity and Inclusion (DEI). Following the social justice movements that occurred during the pandemic, Generation Z portrays their social consciousness by advocating for equity regardless of race, gender, sexual orientation, or economic status. This group demonstrates a heightened awareness when it comes to DEI principles, as well as social justice. In, “Transforming the Future of Work by Embracing Corporate Social Justice,” Andrea Giampetro Meyer, Professor of Law & Social Responsibility at Loyola University Maryland, advises corporate businesses to include and embrace DEI within the workplace because Generation Z is “seeking employers that have created a diverse workforce, clear promotion track, and a commitment to dismantling systemic racism.” Employers practicing these initiatives will attract and retain Gen Z talent.
Implementing and following DEI policies will not only attract Gen Z to your business, but it will also contribute to a more inclusive and innovative workplace. This will lead to an increased sense of belonging from employees and other stakeholders, ultimately driving organizational success.
As this new generation steps into their careers, their inclination towards purpose-driven businesses is rooted in preferences for altruistic work, environmental consciousness, DEI, and social justice. Businesses that understand and embrace these traits will see positive transformation across all facets of the workplace. While there is still much research to be conducted regarding Generation Z in the workforce, it is becoming increasingly evident that businesses will thrive if their values align with those of Gen Z. By doing so, this will create a more sustainable and socially conscious future for us all.
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https://www.sciencedirect.com/science/article/pii/S0959652623002500