Gen Z reforms capitalism by addressing corporate hypocrisy, boosting accountability

Young people’s skepticism toward corporate practices is not a rejection of capitalism itself but a demand for authenticity in an era of perceived hypocrisy, according to a recent analysis. The debate gained urgency after Zohran Mamdani, a self-described democratic socialist, won the New York City mayoral primary in June 2025, sparking alarm among business leaders who misinterpreted the result as a sign of Gen Z’s broader anti-capitalist sentiment [1]. In reality, experts and young professionals emphasize that the issue lies not with free-market principles but with systemic contradictions between corporate rhetoric and actions.

The frustration centers on what Ziad Ahmed, a 26-year-old marketing strategist, calls a “mirage” created by historical communications in politics and business. “If the world is on fire, tell me the world is on fire. Don’t tell me that, actually, you might like the heat,” he said. This demand for transparency extends to workplace practices, where Gen Z prioritizes clear metrics for success and tangible rewards tied to performance. Charlene Li, an author and digital transformation advisor, notes that leaders must also critically examine promotion and compensation structures to ensure fairness, stating that diversity of thought and background is the “number one driver of innovation” [1].

The critique of corporate hypocrisy manifests in specific grievances: companies that tout sustainability while engaging in environmentally harmful practices, or those that promote worker welfare while exploiting gig economy labor. This has reshaped consumer behavior, with young people favoring brands that demonstrate verifiable ethical commitments. The shift pressures businesses to align their operations with the values of a demographic that will soon represent a significant portion of the electorate and consumer base [1].

While some headlines conflate these critiques with ideological extremism, the focus remains on reforming capitalism to address injustices rather than dismantling it. Gen Z’s activism is described as pragmatic, recognizing capitalism’s role in driving progress but rejecting its erosion by unethical behavior. This perspective is already influencing policy debates, with young voters advocating for legislation that enforces corporate accountability and transparency [1].

The distinction between rejecting capitalism and rejecting its hypocracies is critical for understanding current economic and cultural shifts. By addressing grievances like exploitative labor practices, environmental negligence, and tax avoidance, businesses can foster a more resilient economic system. As the Fortune article argues, the goal is not to overthrow capitalism but to reconcile its promises with its practices, ensuring long-term trust and relevance [1].

Source: [1] [The Billionaires and CEOs Panicking About Zohran Mamdani Are Wrong About Gen Z](https://fortune.com/section/magazine/)