Compassionate capitalism – a movement, not just a buzzword

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The world around us is changing. People are growing more aware of their social footprint, and as the next generation of leaders take the reins at research agencies, the importance of strategic corporate philanthropy and compassionate capitalism moves higher up the agenda. 

Compassionate capitalism is defined by three main characteristics: conscious leadership, social purpose and compassionate culture. The concept has been around for a while, but the arrival of millennials and Gen Z into the workplace means companies are having to revisit their commitment to corporate responsibility. As well as uniting colleagues behind a common purpose and attracting talent, philanthropy programmes help build a more compassionate capitalism that works for everyone. They have the power to create more inclusive and fair opportunities that can – in turn – diversify the labour market, boost leadership skills and build a workforce fit for tomorrow. 

Compassionate capitalism is, therefore, critical to the future success of the research sector and gives companies a competitive advantage when it comes to retaining talent – because younger workforces increasingly favour businesses that are socially active. They want to work for companies that stand for something bigger than themselves, and this can be realised via strategic charitable engagement. 

At Ipsos, we’re constantly implementing measures that stand us in better stead from a social responsibility perspective, and this is one of the reasons I joined Pilotlight seven years ago. 

Pilotlight is an organisation that offers managed, skills-based volunteering programmes to companies. It recognises that business members are time poor and skills rich, and the usefulness of employing those skills effectively. It uses its expertise to match charities with business leaders, who subsequently coach the charity leader to plan for sustainability, development and growth.

When a partnership is successful, the benefits are mutual. The programme has helped me develop my skills outside the usual day-to-day research environment, giving me renewed focus and perspective, professionally and personally. The charity, meanwhile, can come away with a plan that will enable it to thrive.  

To put the employee benefit into perspective, 79% of Pilotlighters – the organisation’s business coaches – reported higher job satisfaction after taking part in the programme last year, and 70% said the initiative had complemented their career development. 

In terms of delivering a meaningful benefit to charities, 98% of charity CEOs reported having a greater strategic vision after taking part in the programme and increasing the number of people they help by an average of 52%.

These statistics reveal the wider benefits linked to compassionate capitalism and why companies need to place corporate philanthropy initiatives centre stage. If businesses ignore their wider commitment to society, they will arguably put themselves on the back foot, and struggle to attract the ‘social justice warriors’ among us. 

Of course, there’s a learning curve involved and hurdles to be overcome when taking part in planned charitable programmes. You’ll probably come from a fast-paced, corporate setup, where decisions need to be made quickly – but the charity sector has its own pace, and you need to accommodate that. You’ll want to jump in headfirst with all the ideas you have, but it’s important you take a step back to understand the charity’s key priorities and strategic direction. You need to get to the heart of their mission and their objectives before you can mentor them.   

That said, by bringing together the skills and expertise of two very different sectors, you can enhance the social impact and business effectiveness of both parties. Those who participate can develop and learn new skills – as simple as knowledge-sharing in a new sector or as critical as honing their leadership capabilities.

Just as importantly, it allows research people to increase their engagement with the charity sector and end up with better insight into what’s going on in the real world. It lets them understand the impact of government policies on those who are less fortunate. Smaller charities are often affected by government cuts and spending, which means engaging with them is a fantastic way to understand what’s happening in the economy. I’ve used that knowledge – and experience gained from these insights – in my own progression. 

A couple of years ago, I worked with a cancer charity to help streamline some of the processes it had in place. It was a slow burn to start; you can’t just jump straight in and do everything yourself. You need to work with the charity leader and fellow business executives to get to the root of the problem before you can solve it. It’s a change in pace, but it can be a real breath of fresh air for those used to the corporate setup.  

Of course, people involved in research are incredibly busy. There needs to be dedicated time and resource – and a programme that lets them partner with a charity in a structured way – if compassionate capitalism is to thrive. But it can be done, and it’s undoubtedly worth it for everyone involved. 

Judith Passingham is CEO of Ipsos Global Operations and Ipsos Interactive Services