Buttressing Capitalism.

• Author: Rock, Robert H.

Directors are spending more time discussing and evaluating talent, not just at the top but throughout the company. Once focused exclusively on the top one or two tiers reporting directly to the CEO, boards are now looking further down into the organization, even at entry-level recruiting. Directors in general and human resources committees in specific are taking an in-depth look at policies regarding hiring, training, compensating and career-pathing to ensure they align with both corporate strategy and corporate values. This alignment underpins a company's diversity, equity and inclusion objectives and initiatives, which over the past few years have risen to the top of the board's agenda.

As boards examine the talent throughout the organization, they are coming up against the attitudes, values and goals of Millennials (born between 1981 and 1997) and Gen Zers, or Zoomers (born after 1997). These often differ significantly and sometimes fundamentally from those of the Baby Boomer and Gen X generations, which currently occupy most of the top executive positions and the bulk of corporate board seats. Surveys show that many Millennials and a majority of Zoomers distrust and even disdain free-market capitalism. Do American youth pose a threat to American capitalism?

In a recent interview in The Wall Street Journal, social psychologist Jonathan Haidt blames young people, "warped by social media and a victimhood culture ... for imposing an organizational culture of fear ... which could severely damage American capitalism. When managers are afraid to speak up honestly because they'll be shamed on Twitter or Slack, then the organization becomes stupid." Haidt warns that Millennials and Zoomers are limiting and inhibiting debate, which ultimately could "imperil American culture and undermine American capitalism."

Coupled with their negative view of capitalism, some Millennials and many Zoomers have a different attitude toward work than older generations. Looking for a more favorable work-life balance and having developed a working-from-home complacency, they are not willing to exert themselves in jobs that require long hours and inflexible work schedules. They prioritize well-being over achievement.

Studies indicate that most Baby Boomers and many Gen Xers believe initiative and hard work lead to fulfillment and happiness, but younger generations are not so sure. "Quiet quitting" and "work your wage" are phrases popularized by young workers that mean...