Gen Z’s rise is changing the business playbook
Why leaders should embrace purpose to bridge the generational divide and future-proof their organisations
Multiple factors are transforming the corporate realm, not least the ascendance of Generation Z. Born between 1995 and 2012, this group now constitutes about a third of the world’s population and is set to drastically change the workforce.
While there are notable similarities with the Millennials that came before them, Gen Z is uniquely motivated by environmental issues, social justice and ethical behaviour. Reconciling career aspirations and income security with climate activism, mental healthcare and inclusive growth are their top priorities, according to a recent Deloitte survey1.
The demographic shift is already beginning to heighten stakeholder expectations and reshape employer-employee relations. Though profit and revenue numbers are traditionally the language of business, the planet’s younger generation is calling on companies to consider their impact beyond financial returns. The impetus is being put on chief executives and directors to clearly articulate the “why” and “how” behind their strategies.
Consequently, Gen Z’s ambitions and concerns will spark an economic reckoning, as they petition for meaningful jobs, equal rights and sustainable development. Enterprises that fail to adapt will struggle to attract and retain talent, notes Deloitte. Case in point: 37 per cent of Gen Z professionals told the advisory firm they had turned down an assignment because it did not align with their values.
The same applies on the consumer front, with Gen Z unafraid to reject brands for false advertising or relying on the status quo. Instead, their preference is for authenticity and open dialogue. The old adage that “actions speak louder than words” rings true.
Rewriting the leadership agenda
As much as leadership styles have been evolving to support corporate social responsibility and the transition to net-zero, those of Gen Z might represent a compelling opportunity for chief executives and business founders to lead with purpose.
This model places emphasis on empathy and fair decision-making. By communicating principles, listening to staff and fostering a sense of belonging, leaders can significantly improve employee morale and engagement, putting them in a better position to navigate complex situations.
“The interplay between organisational purpose and individual values shouldn’t be underestimated,” says Professor Lin Zhou, dean of the Chinese University of Hong Kong (CUHK) Business School. “Successful leaders know what their companies stand for, particularly in the face of emerging digital, cultural and geopolitical issues. They’re able to effectively translate their vision, incorporate feedback and get buy-in from teams at each level.”
For CUHK Business School’s alumnus Leong Cheung, contributing positively to society goes hand in hand with his experiences, from consulting to private equity. His passion for philanthropy spurred him to co-found a sports-inspired initiative in Hong Kong called RunOurCity. He then served as executive director of charities and communities at the Hong Kong Jockey Club, which is the city’s horseracing club, overseeing the substantial donations made by the club.
“A corporation’s responsibility lies in more than diligently operating within legal confines, but also proactively building the local communities and being part of the solution to humanity.”
That view is certainly resonating among C-suites around the world. In a study by Accenture, the majority of chief executives said they believed that caring for communities and the environment was more important than ever. Some 72 per cent of chief executives interviewed said citizen trust would be critical to their competitiveness in the coming years2.
A legacy of emboldening progressive leaders
As workplaces keep pace to integrate the Gen Z cohort, educational institutes are playing a vital role by equipping them with the skills needed for the jobs of tomorrow.
“At CUHK Business School, we have a decades-long track record of ensuring that our curriculum reflects the contemporary world. That includes offering new courses on blockchain, data analytics, ESG and artificial intelligence,” says Zhou. “We also have a history of instilling an appreciation for ethics and integrity in our students, regardless of what field they specialise in.”
Another way in which CUHK’s philosophy and Gen Z’s beliefs intersect is in investment in interdisciplinary knowledge. In addition to their main subject focus, students must select a “general education” course — covering everything from astronomy to music appreciation — to broaden their perspectives. Outside of the classroom, activities such as joining a local volunteer scheme are strongly encouraged.
These CUHK Business School options galvanised award-winning social entrepreneur Bonnie Chiu to launch a new charity in 2013. “One of the subjects during my studies was ‘history of women in modern China’, which covered the rights of women and girls, as well as how much more needs to be done to advance gender equality. In my third year, I decided to start a non-profit called Lensational, to empower women and girls through photography and storytelling,” explains the global business studies graduate, whose endeavours landed her on one of the Forbes 30 under-30 lists.
In keeping with the spirit of strengthening purpose, leadership training and peer-to-peer networks are the cornerstone of CUHK’s Innovation x Business platform and Business Education for Social Good programme. Both projects are levelling-up learning by enabling students to participate in partnerships, site visits and practical consulting exercises in the tech start-up sector and ESG space, respectively.
Even though Gen Z’s entry into the workforce is likely to be disruptive, ignoring their hopes and desires would be short-sighted. Rather, industry and education centres should collaborate to maximise the next generation’s potential and nurture a critical talent pipeline.
