Future Proofing Across Generations
I remember planning an event for the Young Investors Organization (YIO) in Munich years ago, and discussing the theme for the event with my mother. I was convinced it should revolve around the innovative world of start-ups, when my mother retorted, ‘what about the stay-ups?’ She reminded me that every company was once a start-up that had to manage uncertainty to become the companies we encounter daily. Simply put, companies must stay up in order to stay relevant, profitable and investable. But these stay-ups and the generation that founded them are being confronted by wholly new dynamics on every front. Not only are we currently at the start of the largest wealth transfer in history, but millennials are now fully represented in the workforce and expect their voices to be heard. Companies and investors are faced with the ever multiplying yet unavoidable reality of a health crisis, climate change, social inequality and political polarization, but it is the next generation leading the charge in demanding change. Why are we using our experience, values and investment capital as a vote for a profitable yet more equitable future, and what does that mean for the businesses of today?
Millennials, much like startups, are challenging the status quo. The newness our generation brings can be daunting, but growing up in the Information Age means we come to the table with a different set of tools and point of view. Being empowered by technology at our fingertips incites an overarching necessity for transparency, feedback, efficiency and speed. The real time access and consumption of information continues to grow across generations and that means it has never been easier to use a more data driven toolkit in our decision-making. If knowledge is power, then it would be next to impossible to ignore the issues of our time and that is why, for example, ‘86% of the next generation is interested in sustainable and impact investment products’ according to the Global Next Generation Report of Credit Suisse and YIO. As the next generation, we are encouraged to question who we work for, who we invest in and what we buy, as we finally understand the long lasting personal and global implications those decisions can have.
To blame the generations or companies that paved the way for the status of the world today is unfair. Not only because many of the negative consequences were unintentional but because there are always challenges to overcome. Hayley Mole, President of the YIO, explains, “Not every generation has had the privilege to harness their efforts such that they are valued by markets and society. We are lucky to be part of this shift, blurring the lines between doing well and good.” While each generation and business has a legacy, we see accountability central to ours. That is why we are holding the companies we associate with to such high standards because we know it is feasible to make holistic choices. Tiffany Chen, YIO Vice President, emphasizes that “individuals and companies must adopt new measures for success and rethink how values should be defined, exercising systems thinking to improve coordination and collaboration.” To stay up, companies and their leaders must embody positive change authentically, providing goods and services that encapsulate the needs and values of the generations to come. Not just because it is the right thing to do, but also because 42% of the largest consumer base on the planet demands it.
The next generation may be setting the agenda for the future, but innovation cannot happen with just one perspective in mind. Companies, consumers and investors, regardless of their generation, must work together and accept that incremental change is a positive step forward, but only if we can all commit to holding ourselves accountable from here on out.
Please note that: This Article was originally written for and included in the Responsible Consumer Fund Investor Report 2020
Photo by naomi tamar on Unsplash
