Lifting the Voices of Tomorrow: The Impact of Corporate Investment in the Next Generation

Education serves as a vital force in shaping the future of society. It provides access to opportunities and instills the principles that future leaders will uphold. Our comprehension of the world enables us to tackle pressing social issues, making it imperative that we nurture young leaders globally—those we will rely on to steer organizations and governments in the future.

Yet, a significant challenge persists: a lack of opportunity. Currently, 79 of the world’s lowest-income countries face an annual education financing gap of $97 billion on average, making it increasingly difficult to ensure access to learning and understanding for all. This gap not only stifles individual potential but also undermines the possibility of global positive change.

The Corporate Role in Bridging the Opportunity Gap

Every individual possesses potential; however, not everyone receives the opportunities to realize it. According to UNESCO, 258 million young people are out of school, severely limiting their future choices—a problem that disproportionately impacts lower-income countries. When we look at learning outcomes, only 1% of primary school children from Europe or North America do not complete school, compared with 15% in Central and Southern Asia and 37% in Sub-Saharan Africa.

These inequalities are further exacerbated by wealth and class disparities. On average, the poorest learners globally benefit from only 16% of public funding for education, compared to the richest, who benefit from 28%. In low-income countries, this disparity is even more pronounced, with only 11% of public education funding allocated to the poorest learners compared to 42% for the richest. Such imbalances have dire consequences, preventing many children from achieving basic literacy and numeracy skills.

Education as the Key to Opportunity

This tangible inequality compounds over generations, but education offers a solution. Research shows that for every additional year of schooling, a child’s hourly earnings increase by 9%. For girls, remaining in school not only boosts lifetime income by 10% but also reduces the likelihood of early marriage dependency.

If we fail to address the education gap, those disadvantaged in childhood will face lasting setbacks. Education shouldn’t end at primary and secondary levels; we must continue to invest in opportunities for young people throughout their lives. Lifelong learning can effectively tackle inequalities while we reform the education system.

Barriers to education and learning opportunities limit the potential of millions worldwide and stifle innovative ideas essential for the future. Nonprofits like One Young World exemplify the vital contributions that young leaders from diverse backgrounds can make in addressing global challenges, providing platforms to amplify their voices and facilitate change.

Consider the impactful work of organizations like JA Worldwide or Plan International (India Chapter), two global nonprofits delivering academic and skills education to people who have been excluded for a host of reasons. In doing so they are providing opportunities for the next generation of innovators, entrepreneurs and leaders to build a brighter future even if their backgrounds didn’t set them up for success. So, for young people globally who have faced war, violence or extreme poverty, hampering their early education, there are important organisations working to equip young people with the skills and mindset to succeed outside of traditional education.

Towards a Collaborative Solution

The discourse surrounding corporate involvement in public education is intricate, raising concerns about potential exploitation for financial gain. Nonetheless, the current job market often lacks candidates with requisite skills. Successful partnerships between corporations and local businesses have demonstrated that collaboration can enhance educational outcomes, boost graduation rates, and equip students with relevant skills. While it’s crucial to acknowledge that education should not solely serve as a workforce pipeline, engaging businesses in discussions about skill requirements can foster a more effective educational system benefiting both students and the economy.

Philanthropy and community support cannot thrive in isolation. By collaborating with other organisations and foundations, corporations can expand the reach and impact of their initiatives significantly.

However, the success of corporate involvement in global education initiatives hinges on their ability to listen to and engage with local stakeholders. As musician and philanthropist Peter Buffett has noted, attempting to replicate successful models from one context to another without regard for local culture and norms often leads to ineffective outcomes. By understanding the unique environments where initiatives are implemented and valuing the insights of local leaders, corporate philanthropy can enhance its effectiveness in educational development. When private sector organizations invest in understanding the specific needs of young entrepreneurs and future leaders, they can significantly contribute to providing the opportunities and resources necessary for building a brighter future.

Investing in Tomorrow’s Leaders Today

Young talent will soon be at the helm of our societies, businesses, and families. To cultivate a better future, we must invest in them today. This is not merely a moral imperative; organizations cannot thrive in isolation.

A business’s impact is amplified by its decision to collaborate with those already making strides in the field, leveraging their expertise and local knowledge to address issues at their roots.

The importance of investing in the development of the next generation of leaders cannot be overstated. While numerous organisations are actively engaged in this critical work, corporations have a significant opportunity to partner with, guide, and strengthen these efforts.

By Gary Shaughnessy, Chair of Z Zurich Foundation