Gen Z still wants ESG
There’s still a case for purpose over profit, not least because our Gen Z business successors are demanding it, writes Natasha Frangos
Gen Z wants businesses with purpose
Last week I took part in the Anthropy conference, held at the Eden Project in Cornwall, which brought together leaders from business, government, non-profits and civil society to “build a better Britain”. Amid a recent fashion for denigrating the value of ESG, I found the conference provided a strong rebuttal through its emphasis on the business case for purpose in business.
Before speaking at a panel about diversity in business, I took the opportunity to attend a session on ‘leading through complexity’. The discussion brought together Baroness Sharon White of John Lewis fame, as well as Pavita Cooper from the 30% Club and well-known business leader Paul Drechsler.
The business leaders stressed that in times of uncertainty, it is imperative to be clear on purpose and values. Baroness White noted that when she interviews younger executives for a role, it often feels like a role reversal and that they are interviewing her. They are keen to know what the business stands for and what its values are. The role of a CEO is certainly becoming more complicated.
We know that younger generations like Gen Z and Millennials are showing strong interest in purpose-led businesses. A survey last year carried out by the Conduit Club showed that 74 per cent of Gen Z entrepreneurs prioritise purpose over profit.
At HaysMac, we see huge interest in the firm’s values and mission amongst our trainee intake. Bluntly, they want to know that our work is helping make the world more sustainable, healthier and fairer. They don’t just want to understand the “what”, but also the “why” and they also want to be part of a business where they can input into these areas.
Contrary to reports of Gen Z’s softness, the next generation looks set to become far better at challenging authority than the current generation.
Orchestrated serendipity
The beauty of Anthropy is that there’s always someone interesting to meet. Some have called it “orchestrated serendipity.” I shared a taxi back to my hotel with an exited entrepreneur, and we had a lot to discuss. There was an array of corporate leaders and entrepreneurs, and everyone had their digital business cards at the ready. I even bumped into an old school friend who I haven’t seen in over 25 years.
The venue of the Eden Project was a joy to behold, and it was my first visit there. What has been created as a reclaimed china clay pit near St Austell is truly remarkable. Eden marks its 25th anniversary this year, and I learnt that earlier in the week they had had two special visitors, with the King and Queen dropping by to say happy birthday!
On my way back from Cornwall, I carried out various interviews with prospective new Partners and senior management on Teams. The work of a Managing Partner never stops! Even though the signal on the train was a bit patchy at times, I managed to plough on through.
Shadow boards
One of the panels I spoke on was about diversity in business and a co-panellist was Lord Michael Hastings, who is a campaigner for more diversity in business and elsewhere. He put forward the idea of creating shadow boards for younger generations in a business. This can be particularly useful where the main board is not particularly diverse and can provide a way of equipping a more diverse next generation with leadership skills. This is not simply a matter of box ticking, but enabling all talent within a company to flourish. Most importantly, this could help to bring cognitive diversity to a business’s decision making.
Green shoots in podcasting
At Eden, I was interviewed for the “What we don’t know” podcast by Hayaatun Sillem.
Hayaatun has had a fascinating career, starting with a PhD in cancer research and then serving as CEO of the Royal Academy of Engineering for 8 years.
During the interview, I was able to reflect on my career journey, and some of the joys and challenges of leading a firm. Doing this away from my natural milieu of the city, in somewhere so different as Eden, was a rewarding experience.
It was an uplifting conversation, all the more special because of the backdrop of the rainforest.
Quote of the week
“Leave your egos and silos at the door”
The Anthropy strapline – a welcome and timely reminder that the collective is more powerful than the individual.
What I’ve been reading
Money Men by Dan McCrum is a jaw dropping, non-fiction book about the multi-billion fraud at Wirecard, a German fintech company.
The company was founded in 1999 and expanded very rapidly, including into international markets. However, around ten years ago, the media and others started asking questions about Wirecard’s business model. In June 2020, it announced that €1.9bn in cash was missing and it had €3.2bn in debt.
Dan McCrum was the Financial Times journalist who investigated and exposed the fraud. This brilliant book highlights the importance of corroborating the headlines and of the audit profession in ensuring that the numbers stack up.
Natasha Frangos is managing partner at Haysmac