Adding to Society in a Conflicted Industry (Cambridge University Press). He’s a lecturer in the economics department at Princeton University, where he’s affiliated with the Bendheim Center for Finance. He’s also someone at Cornwall Capital, an investment fund based in New York.

Finance careers stay in high demand among students. Goldman Sachs received 100,000 applications because of its 2,900 global internships in 2021, despite well-publicized complaints from recent hires about long and unpredictable hours and the increasing lure of tech jobs.

Yet, a recurring concern among my students considering being employed in finance is that they will become cogs in a big machine, finely tuned to maximize short-term profits by extracting value from others. How as long as they navigate the potential conflicts between their humanistic values and the daily demands of high-stake finance?

The bar has been raised regarding what an alignment of values means for students. I could see from my undergraduate students that their interest in understanding their potential impact on society has deepened considering the 2007-2008 financial crisis. For a long time, application essays to at least one of my classes on ethics in finance reflected the deep emotional impact of the recession that followed, often punctuated with a parent losing a job.

Trending

Most Common QR Activation Code 001-$wag$-sfap49glta4b7hwyl5fsq-3802622129

In recent years, worries about the surroundings have suffused these essays. The present generation of students has developed steeped in environmental concerns; most perceive climate change as driven by human activity.

Activism is a greater element of young people’s identity than previous generations. Business school students are increasingly turning to courses that help them understand themselves, despite being often seen as viscerally bottom line-oriented.  potential effected that 600 Harvard Business School students registered for elective courses on the social impact this past year, up from 251 in 2012.

The pandemic could have accelerated a shift in priorities toward greater social consciousness within their lives. In a current survey of Gen Zs by EY, 39% stated they would prioritize their lives. In a current survey of Gen Zs by EY, 39% stated they would prioritize building a difference in the world, versus 33% in the same survey pre-pandemic. Members of this generation are increasingly stating preferences to reside their values at the job, but they also appear poised to act. In a 2021 Deloitte global survey of Gen Zs,  near half stated they made choices in the past two years about the kind of work they are prepared to accomplish and the organizations they are prepared to benefit from based on their ethics.

But young graduates are no wooly-headed idealists. They’re quick to pressure-test assumptions and dismiss hypocrisy. They’re highly resourceful digital natives, nimble at obtaining information from curated online sources. They blame baby boomers for the entire world that has been left in their minds and are unlikely to blindly trust what they hear from their firms’ senior managers.

The finance world is responding. Its pro-social revolution is gathering steam. Assets embedding environmental, social, and governance factors in investment decisions have surged. That trend has generated vast interest among the younger generation. Yet, skepticism remains: In a CFA survey of 15,000 students, only 8% of undergraduate students genuinely believe that investment management can provide a positive social and environmental contribution.

So what can young graduates do once they start their analyst or associate finance programs to uphold their values and contribute to society?

Some can have chosen to select their spot in the market to minimize any misalignment between their values and professional activities. In my view, nearly all of the finance serves society. However, not the whole thing their spot in the market to minimize any misalignment between their values and professional activities. In my view, nearly all of the finance serves society. residential district bank lending to small businesses will probably not keep anyone up through the night pondering whether they are both helping their clients and contributing to society.

Aside from where they land, the top kick-off point to meet personal values won’t be to agitate and challenge on day one but to grandmaster their position’s core skill-set. When young graduates suggest new initiatives inside their firms or raise values-oriented concerns, nothing can provide them more credibility than internal reputation.

They should feel encouraged because they live in an era of particular receptivity due to their views. Millennials and Gen X have now been credited for the explosion in demand for ESG financial products. Younger employees at mainstream financial institutions have now been instrumental in driving their firms’ tilt toward these products.

The relative inexperience of young graduates using their job and their firm offers them an original advantage relative to their more senior colleagues: They have a license to ask pesky questions and probe for transparency. Managers will often value a curious mind to indicate burgeoning leadership–particularly if backed by a strong core skill set. At the same time, the questions may push these managers to think deeper about the social impact of their firm’s activities.

In the investment world, this will translate into keeping their firm honest on ESG matters when many engage in greenwashing. Holding their managers accountable for their firm’s adherence to its publicly espoused standards may be one of the very valuable services young finance professionals may do to serve their customers and society.

Authors publish guest commentaries like this 1 away from Barron’s and MarketWatch newsroom. They reflect the perspective and opinions of the authors.