The See-Through Economy of course resonates most strongly with the millennial generation, as they are the ones most familiar with and adept at using smartphones and social media. A recent survey found that 81% of millennial consumers expect brands to practice business sustainably and ethically. If they find one brand does not, they will switch to another brand that does.
Investors are following customers, so when millennials switch brands, investors move their money accordingly, causing the stock dips we’ve seen at Facebook and so many others. This same trend will spread to all industries and geographies in the next five years at an exponentially accelerated pace.
In this way, the See-Through Economy will drive revenue gains and losses at your company. As millennials grow older, increase their spending power, and become a target customer for more businesses, they will have a larger and larger effect on a company’s bottom line.
While this may sound like a B2C concern, over time it will actually become a B2B concern as well, as millennials climb the workplace ladder and gain the power to effect change within their business. When it comes time for this generation to decide which software and services purchase, which companies to acquire and which partnerships to create, they will weigh an organization’s social, ethical, and environmental integrity more than any previous generation.
ERM not only helps businesses protect their tangible assets, but the intangible as well. With a centralized governance system in place, you can weigh the risk-reward tradeoff of every decision based on how it will impact your brand and consumer loyalty. It’s also the only way to prove your business is acting with integrity and therefore deserves the trust of generations to come.