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The Entrepreneurial Generation by Donna Fenn
April 15, 2008
Philanthropists or Narcissists?
Posted at 6:59 PM
Over the course of researching my book on young entrepreneurs, I’ve come across the work of several other authors who have written about Generation Y. It’s not all flattering, to be sure. Take, for example, Jean Twenge’s Generation Me: Why Today’s Young Americans Are More Confident, Assertive, Entitled – and More Miserable than Ever Before (2006, Free Press), which claims that a defining characteristic of Gen Y is narcissism.
In a Q&A with U.S. News and World Report, Twenge was asked about other reports that show young people doing more volunteer work than ever. Her response was this: “Volunteering among young people has gone up. However, over that same time, high schools began to require community service. And colleges started to either require, or like to see in applications, volunteer work. ... They're doing this because it's required, not necessarily of their own volition.” Hmmm. If that’s so, you’d expect the focus on community service and volunteerism to disappear before the ink on the diploma is dry. But that’s not what I’m seeing.
I’m astounded by the number of Gen Y entrepreneurs I’ve interviewed who have integrated a social responsibility element into their fledgling companies. I’ll tell you about just one. When Shazi Visram and Jessica Rolph started their frozen organic baby food company, Happy Baby Food, about a year ago, they agreed upon a social mission from day one. For every package sold, Happy Baby would feed a malnourished child in Malawi for a day through a not-for-profit organization called Project Peanut Butter. That commitment was made at the company’s launch and continues to be honored. Happy Baby Food’s products are now widely distributed in Whole Foods, but make no mistake – financial success was not a prerequisite for this company’s philanthropic efforts. As struggling entrepreneurs, it would have been easy for Visram and Rolph to take a “we’ll give back when we’re profitable” approach. After all, no one was standing over them with a stick.
So what do you think? Is the spirit of philanthropy and volunteerism alive and well in GenY and the companies they start, or are they just a bunch of narcissists?
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I think it's both and it has to be both. The balance between the two often spell the difference between a socially responsible company that is also profitable and a company that is profitable but couldn't careless about others.
As with most things it starts at the top. You have to be a bit of a narcissist to go against the grain and start your business but if you are a compassionate person you can't help but to also want to make some sort of difference.
In the end, as a GenY'r, we are both.
I definitely think there is an element of selfishness with many of today's young volunteers. For instance in high school, students compete with each other based on how impressive their volunteer opportunities are and how much they will leverage their college application. I certainly think it's a good way to get kids involved in the community but there is a missing incentive there which should come from one's personal ambition and will to help those in need.
With that said, not all intents are self centered. There are plenty of companies and individuals out there that volunteer or contribute based on programs or beliefs that truly matter to them personally. I feel this is the most important aspect of volunteering, having the ability to effect something that you truly feel passionate about and that will make a substantial difference in the life of another less fortunate.
Donna,
I think there is another question. Is being philanthropic BEFORE you have any profits responsible? Are there investors? Bank money? Any possibility of running out of cash? It is hard enough surviving a startup. If the philanthropy is an important part of the public relations, fair enough. At this stage, it isn't even tax deductable since there are not any profits. If it gets to a point of having a struggle paying bills (as most start ups do), the P.R. could go the other way. I would not be happy if a customer was late on payments and I read that they were giving away money to a charity. I would tell them to pay the money owed so I can be giving to charity. One of the primary responsibilities to running a company is staying in business! It allows you to give to charity for many years, as well as supporting it's employees, suppliers, and investors.
Jay, you make some very good points. But when a company publicly declares its intention to be philanthropic from the get go, I consider that full disclosure to investors, suppliers, and employees. Everyone understands that social responsibility is an important element of the corporate culture and part of the brand identity. It may even be one the primary reasons they are involved with the company. The hope is that an authentic philanthropic mission will ultimately create value by differentiating the company from its competitors. The practice of giving back before the bottom line makes that easy and convenient is only irresponsible if those values are not made clear to all stakeholders.
Hey Donna,
If Twenge is basing her conclusions on those in their teens and early twenties, then I think she is doesn't really understand what's going on. Today's young are not any more self-centered than they were twenty years ago...it is just that technology is allowing them to express themselves at an earlier age. In fact, I would argue that on a percentage basis, there are far more young 'good doers' today than any other time in history. The speed at which today's young live has nothing to do with what's inside their heart. Never before has so much awareness of global issues been understood by so many youngsters, who are passionate to make a difference (ex. Ryan's Well, www.ryanswell.ca, and Common Cents/Penny Harvest, www.commoncents.org, and many more). Just because some loudmouths who used to talk smack at school, now use a keyboard to broadcast their message to a wider audience, does not represent the whole. Youngsters are very much growing in their compassion and effort to help those in need.
In respect to corporate social responsibility, there is much more pressure/demand from today's young to have that as part of the corporate culture. Pepsi's CEO has mentioned on numerous occasions how important this is to recruit and retain today's top youth, and as a result have created/started many programs and activities for this purpose. Those starting businesses on their own are also much more aware and actually contribute some percentage of their revenue to charities/causes. This ranges from many small start ups you see at Whole Foods (as you mentioned), to others that are backed by experienced Venture Capital money (eg. SocialVibe, www.socialvibe.com). Not all companies have this as part of their up front vision, but it is more than ever before. For the companies who do make this part of their fabric from the beginning (including my new company) it is because that is what keeps the fire of passion burning hotter and stronger. It taps into what's ultimately more important and satisfying at our emotional and soul levels of being.
I'm pretty sure people hate us because they're old. No science to back that up, just a hunch. Young people have been called selfish no matter what generation they're actually in.
By being more socially responsible, these Gen-Y entrepreneurs might be displaying a lot more emotional intelligence than their predecessors. Philanthropic behavior is necessary for true and long-lasting happiness, according to the research presented in Harvard professor Tal Ben-Shahar's book Happier. To feel that one is doing something good for others is a quality that is shared among the people who are happiest and remain happy for decades. Not only are these Gen-Y entrepreneurs creating positive corporate cultures that will likely lessen corrupt employee behavior (think Enron), they are insuring that their employees feel that their work is much more important than just selfishly fattening their own wallets, and that kind of passion will result in higher revenue. The Gen-Y generation just might be the smartest entrepreneurial generation of them all.
I happen to work for a Gen-Y entrepreneur, the average age at our firm is 26 and our CEO is 30, and I can tell you that I don't believe this generation is selfish at all. Social responsibility is something that is frequently discussed at our company, as I'm sure you've guessed.
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