Sam Caplan
Vice President of Social Impact
Submittable
Back in 2019, Porter Novelli/Cone published their seminal report on Gen Z and corporate purpose. The report painted a picture of an up-and-coming generation characterized by optimism and driven by values. Gen Z felt empowered to affect change and viewed corporations as strategic partners aligned in a shared commitment to social impact.
At that time, 90% of Gen Zers believed corporations must address social and environmental issues. And 83% considered a company’s purpose when choosing where to work. Perhaps for the first time, an emerging generation defined the relationship with their workplace in terms of social impact.
But when the report was published, nobody knew how significantly the world was about to change.
In the years that followed, Gen Z would experience a global pandemic, nationwide protests for racial justice, and the escalating impacts of climate change and economic instability. Wars in Ukraine and Gaza upended global stability and intensified humanitarian crises. And GenAI emerged, threatening the future of work in an age of rapid technological advancement.
Today, the digital generation is grappling with loneliness, mental health issues, and deep uncertainty about the future.
But has the Gen Z of that Cone report been so shaped by the world’s changes that it no longer embodies the same commitment to progress and social impact as its earlier identity? And can corporations still offer the partnership and sense of purpose that once shaped Gen Z’s decisions about where to work?
Purpose-Driven Work Still Matters to Gen Z
According to the new 2024 Gen Z and Millennial Survey by Deloitte, 86% of Gen Zers say having a sense of purpose in their work is very or somewhat important to their overall job satisfaction and well-being. This percentage is even higher than the 83% reported by Cone back in 2019.
For Gen Z, driving social change is directly aligned with a company’s purpose. When considering a potential employer, 75% say that an organization’s community engagement and societal impact is an important factor. And nearly half, 44%, have turned down a potential employer for making a negative environmental impact or contributing to inequality through non-inclusive practices.
And while Gen Z still believes that corporations should align with their values, fewer than half feel that business is positively impacting society. There’s a major gap between what they believe business is capable of and what it is currently delivering.
I call this “the purpose gap”. And this can be a huge problem for employers hoping to attract and retain Gen Z talent.
How CSR Can Help Close the Purpose Gap and Win Talent
Giving and matching, and employee volunteering programs have long been the cornerstones of corporate purpose, but while these programs are near ubiquitous, employee participation is perennially low. According to CECP’s Giving in Numbers report, in 2023, employee volunteer programs averaged just 23% participation and 1.8 hours annually per employee. Corporate giving and matching programs were even less popular among employees, with only 20% participation.
So, while many corporations offer employees the opportunity to make a social impact, with such low participation, they are likely not seeing the benefits of real engagement. In order to overcome these low participation rates, there are a number of things corporations can do that directly align with Gen Z sensibilities.
Leadership Engagement is Essential
That same CECP data shows that median matching gifts to disaster relief nearly tripled between 2021 and 2023, and median matching gifts to workplace giving campaigns increased by a whopping 85%. Conversely, year-round matching gift programs saw a 23% decrease in participation.
So what is it about disaster relief and workplace giving campaigns that result in this increased participation? They are targeted campaigns, which tend to receive a lot of engagement and publicity from corporate leaders. They are widely communicated, and employees are encouraged to participate.
When employees aren’t encouraged to participate, odds are they won’t. Conversely, when corporate leaders simply send emails, describe the purpose and importance of a campaign, and generate enthusiasm, participation skyrockets.
This leadership engagement is critical to, and appreciated by, Gen Z. For a generation that prizes authenticity, seeing their corporate leaders engaged in CSR programs serves to reinforce their confidence in a company’s purpose.
Modernize Employee Engagement Programs
Employee volunteering and giving programs (along with corporate grants) are ubiquitous across corporations committed to social responsibility. And for good reason, because employees expect opportunities to give back to their communities. But many programs have been slow to evolve, leaving many Gen Zers wondering if corporations are attuned to their expectations.
Start by finding ways to democratize programs, and give employees more agency and choice in how they participate. Corporations offering virtual volunteering and flexible scheduling have become much more common than the traditional ‘day of service’ where everyone does the same thing at the same time.
Employee resource groups (ERGs), a staple at nearly every corporation, are being given greater agency in terms of building relationships with nonprofits and leading corporate volunteering and fundraising events. Rather than a traditional management-led approach that may not resonate with staff, enabling ERGs to get more deeply involved in programming puts the focus directly on the causes and organizations that align with large groups of employees.
Reach Them Where They Are
According to the Cone report, 91% of Gen Zers use social media to learn about and participate in issues they care about. For the first-ever digital generation, integrating your CSR and employee engagement programs with technology, data, and social media is critical for participation.
While many corporations have adopted software to manage engagement programs and encourage participation, it’s often inadequate, outdated, or poorly implemented. Gen Z expects personalization, immediacy, and simplicity from their technology.
Corporations should assess the modernization of their CSR tech stack. Do employees learn about corporate giving or volunteer opportunities through an outmoded intranet, or through channels like Slack or Teams? Do engagement platforms make it simple for employees to discover volunteer and giving opportunities that align with their interests, or are they one-size-fits-all? Can staff make a charitable contribution directly from a digital wallet?
The digital generation has high expectations from technology, and if it doesn’t align with how they use tech for the rest of their lives, it likely won’t get used at all. And that neglect will result in lower program participation and, ultimately, lower engagement.
The More Things Change, the More They Stay the Same
Gen Z’s values, aspirations, and expectations of business have remained consistent despite the dramatic societal changes of the past five years. They continue to see corporations and employers as essential partners that must align with their values through both words and actions.
Businesses must actively address environmental and social challenges, offering meaningful opportunities for volunteerism and charitable giving. Corporate mission statements and values must be rooted in purpose, authenticity, and tangible action. Employee engagement strategies should evolve to be more personalized, modern, and ultimately impactful.
Corporations that rise to meet these expectations won’t just earn the loyalty and support of the Gen Z workforce—they will also drive more significant and more lasting social change.
