CSR, CEOs, and Boomerangers in The House

Feel Better About Your Toothpaste 

In the first of our Future of Giving briefing series, Anna Sofia Martin, s&h editorial director, uncovered some of the micro moments that brands are trying to tap into to embrace philanthropy and social responsibility. By becoming part of consumers’ daily rituals, brands are also using those moments to reflect values that are important to their customers. These small touchpoints become ways for consumers to turn something routine, like brushing your teeth or washing your face, into a form of activism. 

These are brands that weren’t built on the foundation of cause-based philanthropy, but they’re using limited edition products to reflect topical social issues. Hello Products, for instance, partnered with Rock the Vote to create their first ever limited edition ‘Empowermint’ Toothpaste with $1.00 from every tube sold going to the nonpartisan cause.

Between climate change, racial injustice, police brutality, COVID-19, and voter suppression, there are many crises that are top of mind for consumers. Brands are getting smarter about integrating more causes into one activation, like underwear company Girlfriend which launched a limited edition sustainable collection and then donated 100% of the proceeds to a number of nonprofits that support the Black community, with a minimum of $20k going to each. As consumers grow more conscious of their spending power, brands must work to keep up.

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Where CEO and CSR Gets Complicated

CEOs and founders have become inextricably linked to the businesses they lead and any personal decision they make becomes reflective of the company. Our Future of Giving briefing also discussed the culpability and accountability of corporate social responsibility. While brands enter these conversations and give to causes and communities as a conglomerate, CEOs must also uphold and express these values. 

This sentiment is echoed by consumers who consistently call out the misalignment of corporate values and the values of the corporation’s leadership team. A study published in June this year found that CEOs who invest less in corporate social responsibility undermine their organization's resilience. The study linked a corporation's lack of CSR giving to the amount of greed possessed by the CEO: less CSR from a company equated to higher levels of greed.  

But what about CEOs who are actually giving more? We are seeing CSR efforts that are easily undermined by the damage the company has already inflicted upon the community and the world at large. In the comments of this briefing, one user brought up Twitter saying, “Dorsey’s commitment of a billion dollars is an extraordinary example of social responsibility, but at the same time Twitter is probably one of the serious contributors to social erosion and distrust.” 

Another example of CSR subversion from a CEO is Jeff Bezos’ latest endeavor “Bezos Academy”. This is a $1 billion effort to create free preschools for low-income children, the first set to open on Oct 19. Yet this philanthropic effort has been criticized for saying that Bezos had a hand in creating low-income households by not paying Amazon workers adequately and preventing employees from unionizing. Consumers don’t think it’s good enough for a brand to fix the problems they spent years creating. Cases like these showcase the confusion and complications for consumers as they assess the relationship between a company’s CEO and CSR.

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Tracking New Milestones for Adults

COVID-19 has affected the future of Gen Z, arguably more than any other generation. At the start of the pandemic, many were in the process of securing internships and jobs as next steps into adulthood. When companies started pulling roles and rescinding internships it felt reminiscent of their childhoods when the Great Recession of 2008 hit. Mirroring that era, many Gen Zer moved back home to figure out their future.  

Yet, it’s not just Gen Z who finds themselves living at home. Young Millennials, alongside older Gen Z cohorts are being grouped together and dubbed the “boomerang generation”, or those who left the nest for a short time and came back, mostly because of COVID-19. In July, 52% of young adults were living with their parents—surpassing the previous peak during the Great Depression era. What used to be a significant milestone of adulthood is now delayed and being redefined as a cost conscious initiative to prepare for a stable reentry into an independent life.

This regression is causing these “boomerangers” to seek out different milestones to help define adulthood. Instead of getting a studio apartment and upgrading their Wayfair furniture many are putting their things in storage (or their parent’s garage) and going on their own Great American Roadtrip. Perhaps scratching off all 50 states will be a new milestone for maturity.