Leverage. Understanding it and wielding it effectively is key to being successful in both business and life.
And while at a personal level most of us consider ourselves in control of our own leverage – putting it to use in job interviews, pay negotiations and personal relationships – we are acutely aware of our lack of leverage at a macro-level. Who are we to change the world?
Of course this is why the notion of democracy – our contribution to collective leverage – is such a powerful idea. But with politicians increasingly failing to deliver post polling day, there is a growing disillusionment about the role of democracy as an effective lever for change.
Fortunately this doesn’t mean society’s ability to collectively leverage is dead in the water. In fact building leverage for issues we care about, can now be found in a more modern and accessible polling booth – our wallet.
Business – the new face of collective social leverage
In Australia, we’ve seen this play out most recently (and with dramatic effect) in the marriage equality debate. Despite the majority of Australians in favour of same sex marriage being legalised, our government continues to stall on what is now globally accepted as a fundamental human right.
But while the public sector continues to fall short, the private sector is increasingly responsive to community pressure to change the status quo, and is prepared to use its economic leverage to push the government to take action. In March of this year, more than 30 CEOs from companies like Qantas, Commonwealth Bank, Telstra and ANZ penned an open letter to the government, urging them to legislate on the issue.
Feel-good factor aside, many of these CEOs are aware it makes good business sense to take a values based stand. Customer research conducted by Qantas indicates that thanks in part to its values led advocacy, the national carrier’s trust and reputation scores are now the strongest on record. In an environment of eroded consumer confidence and trust in big brands, this is significant. This year the Qantas share price hit a decade high.
Of course the danger with such strategies in today’s hyper-social world are ensuring public positions aren’t seen as tokenism. As advertising executive Alex Holder points out in her latest Guardian opinion piece, ‘Sex doesn’t sell any more, activism does. And don’t the big brands know it.’ Brands who are caught out face an unenviable roasting on social media, a hit to earnings and a reputation in tatters. Values led branding is a precarious balancing act, especially for multi-nationals or businesses with complex supply chains.
Slacktivism and the conscious consumer’s wallet
While brands like Qantas are increasingly attuned to the conscious consumer’s wallet, a bigger convergence of armchair activism, otherwise known as slacktivism, and consumers’ digital wallets is underway.
Rather than just seek out brands who have taken a public stance on a single issue, consumers are now gravitating towards fintech providers who can help give their money a voice through the collective leverage of their dollars.
If politicians won’t take action on climate change then consumers will, by investing more heavily in green energy producers. If governments won’t take effective measures to tackle gender pay inequality, then consumers will, by investing in companies with gender diversity as a priority.
Fintech sponsored slacktivism has arrived
In the US, Swell helps it’s customers ‘Invest in Progress’, offering 6 portfolios containing a basket of publicly traded companies they believe ‘stand to grow based on important social and environmental trends.’
In Australia, Goodments are helping investors match with companies that share their environmental, social and ethical values. Just last week, the Australian arm of micro-investment app Acorns announced the launch of its Emerald Portfolio, a socially responsible investment option. And local online brokerage Stake helps Australian investors filter potential US stock purchases based on personal preferences, like investing in companies led by women.
Impact investing hits mainstream
The socially conscious use of money is well and truly the next wave of collective leverage. And while the concept is not new – impact investing and conscious consumerism have been around for decades – the technology to facilitate its widespread take-up is.
There will always be power in pure activism, in getting out of our armchairs and pounding the streets with our placards. But the fact is these sorts of behaviours are only exhibited by the minority. We shouldn’t dismiss the collective power of everyone doing a little something from the comfort of their La-Z-Boy.
While it’s easy to pigeonhole slacktivism as a negative byproduct of today’s ego driven, social avatar orientated society, it’s possibly too hasty and intellectually basic a characterisation. Instead, it’s arguable fintech sponsored slacktivism is shaping up to be the next evolution of digital activism, and might just be the modern day Archimedes lever millennials have been looking for.
I write for free and I don’t accept sponsored blog posts, despite being hit up all the time. If this article left you thinking a little differently about the world then please consider supporting me by becoming a patron here.
Did you enjoy reading this post? Subscribe to my blog here to get new articles delivered straight to your inbox as they come off the press!
Jessica Ellerm 