Why I think CEOs can’t sit out issues of social import
In recent weeks and months we’ve seen many social issues play out in the corporate arena. Some were blips on the radar, others more meaningful foretellers of lasting trends, in all cases they were a reflection of changing times. Businesses are downstream to this change, they are impacted consumers of the trend (for better or worse) and business leaders are ill-advised to sit them out. That said, this by no means is a “one size fits all" prescription — each business is different and each leader has a different style, they should determine the “how and what” for themselves— it is but a gentle invitation to care with a rationale for why.
I. Baby boomers to Millennials — the largest most meaningful workforce turnover. This is meaningful on two counts: (a) Sheer numbers : Baby boomers have been leaving the workforce for a while now, this trend was accelerated by the pandemic. According to the U.S. Bureau of Labor Statistics by 2030 millennials will make up 75% of the workforce. This change in composition has a deep impact on workplace culture the extent of which is not yet fully understood. We are however, beginning to see it play out in small and large ways through trends like hyper-personalization on the one end and activism and organizing on the other. These are not passing trends therefore deserve a thoughtful, mature response from business leaders. The choice — to lead or play catch up. (b) High delta value — it is well documented that millennials and baby boomers couldn’t be more different in their attitude and preferences. This is true of gen Xers and baby boomers too, but the gap is wider between millennials and baby boomers. Both gen-Xers and millennials have seen multiple crises — the most recent was the pandemic and the financial crash of 2008 prior to it — both had a significant impact on their view of the world. While one of these events was predictable and predicted by discerning observers of Wall Street, the other was a black swan event with a scale and scope so large that few could’ve foreseen it. If the experience and views of these generations weren’t already vastly different, these events have, and continue to widen the gap as they reshape beliefs about, and expectations from societies , cultures and workplaces.
II. Unprecedented social and emotional challenges. Employees are humans , and however much you may prefer to draw boundaries between professional and personal lives, it is undeniable that humans bring themselves to work. The pandemic brought existential questions to the foreground. It created “space” to explore “meaning of life” questions in the backdrop of extreme shared suffering and/ hardship. Many used this space and accompanying silence to draw different conclusions about the futility or utility of the rat race (simply put). We’ve measured the economic impact of Covid19 but we are yet to fully quantify its social and emotional impact, which is now playing out through trends like the great resignation and quiet quitting, both make an eloquent case for why leaders should *choose* to care.
How employees “show up”, what they consider important is directly correlated to employee engagement and satisfaction and if part of a leader’s job is to keep a pulse on the culture of the company and actively shape it, they’re ill-advised to let this play out on its own. What’s required? A set of human skills to formulate a thoughtful response (to a massive change already afoot). Getting ahead will require extrapolation using a human lens and recalibration (of business priorities) to reflect lasting change in employee priorities. Similarly, changes to public policy or laws of the land that have a direct impact to employee quality of life and well-being also require a meaningful, ameliorative response from business leaders.
III. Climate change and its impact — This is well documented and we’re already seeing glimpses of it. Broadly speaking, how and where we live will get affected in many predictable and unpredictable ways. With the employees directly impacted businesses will also experience these shocks directly but differently making it imperative for leaders to get involved.
Involved how ? In two separate but related ways: (a) Care about climate change — do your bit! The spectrum of climate action is vast and room for action near infinite. For some this may mean accepting climate science and for others (further along in their understanding) it may mean formulating a plan to combat it with a “think global act local” approach. Adopting a sound strategy with even small meaningful changes will make a dent. (b) Risk management and mitigation strategies to address impact of climate change on the workforce as a result of displacement, migration or other forms of partial or full workforce impairment events. This can turn into headline risk if left unmitigated.
In all of the above the common thread is the enormity of social and emotional impact on human life as we know and experience it. They each have a direct impact on survival and running of businesses. As much as you prefer to stay “neutral”, this moment demands you care, get involved and get ahead. You may be able to avert crises in many cases and in other instances have a plan to navigate turbulence successfully.
