Last week, it was reported that billionaire investor and Miami Dolphins owner, Stephen Ross, planned to hold a fundraiser for Donald Trump at his Hamptons mansion. For $250,000, donors could attend a luncheon, take a photo and sit down for an intimate roundtable discussion with the president. Despite defending his decision to hold the fundraiser, Ross drew harsh criticism and, representatives of companies in which he’s an investor, like Equinox, SoulCycle, and Momofuku, we’re not shy about their feelings regarding his plans. Kenny Stills, wide receiver for the Dolphins, even pointed out the inconsistencies between Ross’s nonprofit organization, which *champions* inclusion and diversity, and the upcoming luncheon.
As news spread across the Internet, campaigns to boycott Ross backed businesses emerged. Similar to Stills, members and customers of these businesses were upset and confused at the idea that a brand they spend their money on (and a community are loyal to) would be in bed with someone who supports a president and an administration that consistently falls short of advocacy for diversity or inclusion, especially when many of these organizations cater directly to these ideals.
Unfortunately, there are elements of capitalism that causes people to become passive enablers in the things with which they disagree. Just like passive investors get roped in to owning shares of companies that don’t align with their values, patrons of companies sometimes unknowingly financially support the political decisions of those running and backing them. Capitalism cuts both ways though; investors and customers today have more choices on where to throw their support (and dollars) than ever before.
For those looking to live a more deliberate life as far as spending money is concerned, the opportunity to redirect dollars elsewhere is available, especially in big city centers where there is no shortage of alternatives (like high-end gyms). If you don’t like what’s happening you have the ability to become part of what you perceive to be the solution rather than remain part of the problem.
For retail investors, this also rings true. Socially responsible investing is on the rise and both large and small asset managers in the world now offer robust investment products that closely align with investor preferences, whether that be through the removal of unsustainable businesses or companies that are environmentally unfriendly. Individuals can put their money with their mouth is.
One of the many reasons Millennials are targeted for socially responsible investing is because we are the deliberate spenders. While we’re painted out to be spendthrifts of the latte and avocado toast variety, we’re actually the generation that’s most likely to cancel our gym memberships and pass on an artisanal pastry because we’ll be damned if our hard earned dollars wind up in the pockets of anyone that could give two squats about our priorities, values and challenges, such as wrestling with high cost of housing, stagnant wage growth and mounds of student loan debt.
What many people outside my generation don’t understand is that, even if it means giving up something we really like, we’re happy to find an alternative product or solution. We don’t believe in staying put simply because the burden of switching is too high. It’s not. And, even when the burden is high, we don’t back down. We’ll disrupt the current options out of existence. Do I really need to go down the list of companies and industries we’ve murdered over the last ten years? Harley Davidson, Applebee’s and big mayo would prefer I did not.
Things are no different when it comes to our careers. The cost of switching is no longer too high here either. When corporations fail to align themselves with the demands of today’s young workforce (i.e. paid family leave, work from home and equal pay) we have no problem taking our talents elsewhere. If there’s nowhere to go, we start own businesses and let the free market price our talents accordingly. We continue to create and leverage the systems and technologies that allow us to do it because we can and because we are willing to compete for something better. We will keep doing it until things change for good.
Consumer-based boycotts are more than just an act to demonstrate dissatisfaction with the motives and actions of corporations and their leadership. Boycotts are deliberate decisions that direct dollars to and from the things we either are for or are against, whatever they may be. However, without followthrough boycotts are nothing more than empty threats. Without action there can be no change. Generational authenticity fueled by capitalism is that change. At least for Millennials.
Other than social media, what are you committed to? Come tell us over on…err…Twitter.
What is the last thing you committed to and how did it go/how’s it going?
— Douglas A. Boneparth (@dougboneparth) August 13, 2019