Inclusion starting with Generation Z becomes a driver for advancing DEI&B (Part 2)

Dentsu Inc. has launched " REVERSE CONSULTING for SUSTAINABILITY," a service that advances corporate sustainability in collaboration with Generation Z, known as sustainability natives. Yuta Matsuzaki, co-representative of the " YNGpot.™"team within Dentsu Digital Inc. involved in this service, Masamune Nagata, who serves as a consultant, and Rie Tanaka of Dentsu Team SDGs discuss sustainable organizations and the nature of organizations supported by the next generation, such as "alumni" networks of former employees.

Generation Z's approach to sustainability also has aspects rooted in a "thrifty" mindset.

Nagata: Lately, I've noticed an increase in opportunities where various companies ask me for advice, saying, "We want opinions from a Generation Z perspective." In those situations, I consciously focus on "breaking down barriers" and convey my own opinions frankly.

Tanaka: Can you share a specific example?

Nagata: Previously, when a company discussed installing solar panels for sustainability, I openly shared concerns like, "What about the disposal issue?" or "From a carbon emissions perspective, isn't it better to reuse old items rather than create new ones?" I believe the core of Gen Z's sustainability mindset is rooted in the idea of finding affordable, quality items and using them for a long time. In other words, it could also be seen as a form of thriftiness.

The "vintage clothing boom" has been around for a while now, and in a way, I think their cost consciousness is one factor behind it. They simply wear it because it's old, cheap, and good. For Gen Z, even the value of seeing vintage as "sustainable" might just be an afterthought. I suspect it's simply that pursuing cost performance ended up contributing to sustainability too.

Tanaka: That feeling of wanting to make the most of limited money, time, and resources—not out of obligation—is very natural. It's an "eco" mindset rooted in physical intuition, not just intellectualism.

Nagata: I believe business agility—the ability to respond quickly and accurately to changes in the business environment—is crucial for corporate sustainability. The candid opinions of Gen Z are valuable for making decisions. In a business world where transformations no one could have foreseen six months ago keep happening, it's vital to catch up on information quickly and make decisions.

It's vital to have people who connect networks so each employee can leverage information they care about.

Nagata: I believe it's the company's role to support how each employee develops and utilizes their individuality. If we can make it widely known that "our company has such interesting people" and "this is a company where you can do things like this," then new seeds can be found, fostering a culture where both inclusion and business continuity are easier to achieve.

Matsuzaki: The antenna for catching information doesn't need to be directly related to the company's business; it can be an employee's personal hobby. Often called "intrapersonal diversity" in management studies, encouraging employees to explore knowledge leads to greater diversity in individual experiences and broader insights. Furthermore, people with such diverse experiences tend to connect more easily with multiple communities, both inside and outside the company, ultimately enriching their structural holes. If more people can view the organization not as a siloed structure but as a "network," and furthermore take on the role of boundary spanners who can leverage these internal and external networks for corporate activities, then not only will internal diversity and inclusion advance, but the company as a whole will also move forward on critical challenges like innovation and sustainability. When you have people who can create these social networks—people who act as hubs spreading the organization's culture, or who connect previously disconnected departments—that's when organizational barriers truly start to dissolve.

Nagata: Once you identify potential hubs, find common ground in their external activities and create touchpoints. That's how transformation happens. It's not just about three heads being better than one; even the coffee circle I started began that way.

Ensuring community diversity, including alumni, benefits business

Tanaka: In recent years, networks called "alumni" have grown, maintaining connections with former employees. It's recognized that simply because someone leaves the company doesn't mean the relationship ends. Changing how you interact and maintaining a loose connection afterward is considered beneficial for both the former employee and the company. What potential do you two see in alumni?

Nagata: Regarding YNGpot.™, retirees sometimes attend our meetings. They keep their accounts active on our communication SNS so we can always stay in touch. We maintain a connection, thinking "it would be nice to collaborate on something someday," through regular information exchange. Of course, we take care to avoid sharing confidential information.

Matsuzaki: I believe recent shifts in business standards have amplified the potential of alumni networks. Specifically, with the rise of remote work, face-to-face interactions with other departments and internal community engagement seem to be declining. Of course, this trend has positive aspects too. For instance, the proliferation of online connections means we can now easily reconnect digitally with professional contacts we might have otherwise lost touch with. Precisely because opportunities to come into the office have decreased, as long as you can keep the conversation going on business chat tools, you can stay in touch with people even after they've changed departments or left the company—sometimes without even realizing they've moved on. This has likely made it easier to accept alumni back into the fold. Additionally, I've started hearing more cases, albeit gradually, of companies outsourcing work to former employees as side gigs or of people returning to their former companies. Compared to the past, perceptions around changing jobs or leaving companies have started to shift, haven't they?

So, whether you utilize a circle system like Mr. Nagata or connect with alumni via business chat tools, either approach is valid. Ultimately, I believe maintaining diverse communities is crucial for corporate sustainability. In this VUCA era, businesses must continually reassess their strategies to adapt to societal shifts. As the pace of change accelerates, each department needs to evolve with greater agility. In such times, having every employee stay attuned and connected with diverse talent proves highly effective from a resilience perspective.

Tanaka: So, companies should aim to institutionally ensure not only the diversity of their individual employees but also the diversity of their communities. I often see companies with high employee satisfaction intentionally creating opportunities like volunteer days to step away from daily work and promote cross-border collaboration. Changing communities also increases opportunities to objectively recognize the positive aspects of one's own company and past work, or to articulate its potential. Furthermore, people who seek to maintain connections with their former companies as alumni likely perceive benefits beyond salary and other compensation. I believe this reflects the presence of an attractive shared corporate culture.

Now, for the final question. What outlook do you both have for "REVERSE CONSULTING for SUSTAINABILITY"?

Matsuzaki: I want to increase the number of companies where every employee has their own vision and mission, and works with a strong desire to "change the world with their own hands." Through "REVERSE CONSULTING for SUSTAINABILITY," I want to pursue "what only our team can do" and "what truly matters for us to do." I strongly believe that by digging deep into this, we can create a society where everyone can be happy.

Nagata: I hope it helps dispel the "stagnation" felt by companies facing challenges. To achieve this, I want to keep offering candid opinions, even starting small, to support nurturing and leveraging individual strengths. By building on this, I aim to create new services and businesses, striving for a richer society within the context of the global economy and well-being.

Tanaka: Both of you share this big vision: creating a better society through companies that empower individuals. Looking at data from the "Change Maker Survey (3 countries, 5 cities) " conducted by DENTSU SOKEN INC. and Dentsu Global Business Center in August-September 2022, Japan has a higher proportion of people with negative impressions of work and companies, and who are skeptical about society, compared to other countries. If this relates to Japan's lower economic growth and subjective well-being, then as you both suggest, society could transform as workstyles and organizations that allow both self-realization and others' happiness become more widespread.

This also connects to what Mr. Hisashi from NEW STANDARD Inc. mentioned in the first installment of this series: "Both digital transformation and sustainability start with people." While there are various approaches to business transformation, fostering a new organizational culture aiming for DEI&B is also a key driver for sustainability promotion in "REVERSE CONSULTING for SUSTAINABILITY." Thank you for sharing such an exciting vision for the future today.

The two representatives from YNGpot.™ shared how deepening connections and building networks with diverse people, both inside and outside the company, sparks new ventures and business ideas. To make this happen, they emphasized the need for "hubs" – people who connect individuals, departments, and companies – to break down barriers and foster an environment where every employee can thrive and experience DEI&B. Such organizational culture could become the fertile ground supporting a company's long-term growth. Sincerely listening to the candid opinions of Generation Z (the future generation) and flexibly applying them to business is gaining attention as a crucial key to achieving sustainable corporate management.