{"id":15100,"date":"2024-04-30T16:17:23","date_gmt":"2024-04-30T14:17:23","guid":{"rendered":"https:\/\/unequity.com\/?p=15100"},"modified":"2025-11-06T09:47:41","modified_gmt":"2025-11-06T08:47:41","slug":"equity-culture","status":"publish","type":"post","link":"https:\/\/unequity.com\/en\/equity-culture\/","title":{"rendered":"Equity Culture"},"content":{"rendered":"\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\"\"\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t

How to develop an investment mindset in employees <\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t
\n\t\t\t\n\t\t\t\t\t\t<\/span>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t

What do you think?
<\/span><\/h3>

Please take a moment before you start reading, and consider the answer to this question: <\/span>Which three emotions do you associate with the term \u2018stock market investment’.<\/span><\/b><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

\n\t\t\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t

What do we mean by \u201cEquity Culture\u201d?\t<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t

When we hear the term \u201cculture\u201d, you probably first think first of music, paintings, theater, art, or perhaps characteristics specific to a nationality or region. You may be confused by the connection to the word \u201cequity\u201d here, and what we mean by this. In this article, we are talking about \u201cequity\u201d in terms of the investment in the capital market, in stocks and shares. And what does culture have to do with this? We must go back to the original meaning of \u201cculture\u201d, from the Latin \u201cto tend, to cultivate\u201d. The term \u201cEquity Culture\u201d, therefore, refers to the engagement with stocks and shares, and is based on the reference to sowing, growing, and harvesting \u2013 which is quite appropriate!\u00a0<\/span>\u00a0<\/span><\/p>

We also usually associate the world of culture with emotions such as enjoyment and enthusiasm, while stocks, shares, money, and investments are financial, rational topics that don\u2019t involve our emotions in the same way. In this article, we ask whether that must always be the case, and if it is possible to get people excited about investing in shares. And for companies with an employee share ownership program \u2013 is it possible to help your employees develop a positive investment mindset?<\/span>\u00a0<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t

\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t

Etymology
<\/strong><\/p>

The word \u201cculture<\/strong>\u201d <\/span>comes from the Latin \u201ccultura\u201d<\/span>, <\/span>which means \u201ccare, culture, <\/strong><\/span>an honoring<\/strong>\u201d, from the Latin stem \u201ccolere\u201d, meaning \u201cto tend, <\/span>guard, to till, cultivate\u201d.<\/span><\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

\n\t\t\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t

Tracking emotions \u2013 how people think about stocks and shares <\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t

When you ask people in Germany to name their feelings about shares, the most common responses include fear, uncertainty, and scepticism. During research conducted by the German Institute for Shares <\/span>(Deutsches Aktieninstitut)<\/span><\/a>, 77% of respondents agreed with the statement \u201cInvesting in shares or equity funds is unsafe or risky\u201d to some extent, to a large extent, or even completely. And only one-fifth of respondents felt that investing in shares or an equity fund was \u201ceasy\u201d.\u00a0<\/span>\u00a0<\/span><\/p>

This <\/span>rather negative mindset<\/span> is reflected in <\/span><\/span>the<\/span> stock market<\/span> participation<\/span> rates<\/span> in Germany<\/span><\/span><\/a>. In 2023, only 17.6% of Germans invested in shares, equity funds, or <\/span>exchange-traded funds (<\/span>ETFs<\/span>).<\/span> W<\/span>hen researcher<\/span>s<\/span> studying <\/span><\/span>attitudes toward <\/span>stock market trading in Germany<\/span><\/span><\/a>,<\/span> on behalf of Deutsche B\u00f6rse AG,<\/span> asked survey participants why they were not currently <\/span>trading on the stock market, <\/span>many responses were negative, such as risk, fear, lack of knowledge<\/span>. Other responses included <\/span>lack of money or interes<\/span>t<\/span><\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

\n\t\t\t\t\t\t\t
<\/div>\n\t\t\t\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t

Statements by those who do not own shares<\/span><\/b>\u00a0<\/span><\/p>

67 %<\/strong> <\/span> Fear losing a lot of money in the event of
economic crash<\/span>
66 % <\/strong><\/span> Assets are too low to invest in shares<\/span>
65 %<\/strong><\/span> Lack the required knowledge<\/span>
57 % <\/strong><\/span> Not interested in investing in the stock market<\/span>
56 % <\/strong><\/span> Fear of making the wrong choice<\/span>
53 % <\/strong><\/span> Fear regretting the investment in the event of a loss<\/span>
42 % <\/strong>Concept of stock investment too abstract<\/span>
<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t

\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t

Statements by those who do own shares<\/span><\/b>\u00a0<\/span><\/p>

61 %<\/strong> Owning shares makes them feel good<\/span>
<\/span>56 % <\/strong> Know other share owners<\/span>
<\/span>55 %<\/strong> Emotions are important due to previous experience
in investing<\/span>
<\/span>40 % <\/strong> Fear regretting not investing in the event of profit<\/span>
<\/span>34 % <\/strong> Important to have people around them who had
positive experiences<\/span>\u00a0<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

\n\t\t\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t
\n\t\t\t\n\t\t\t\t\t\t<\/span>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t

Take a break \u2013 and review what you wrote when you started reading. Which three emotions did you write down?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t

Almost all of these statements are driven by emotion, negative and positive. On one side are the various fears, which basically come down to not knowing enough about investing in shares, making the wrong decisions, regretting the decisions later, and losing money in general. <\/span><\/p>

On the other side, however, people who already own shares report positive feelings about their investment. The surprising realization: <\/span>Investing in shares is an emotional topic.<\/span><\/b><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

\n\t\t\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t

Negative feelings come from lack of knowledge<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t

Additional statements by the survey participants point to the origin of these emotions. A significant obstacle to investing in shares is lack of knowledge. 65% of those who do not own shares are deterred from investing because they don\u2019t know enough, and 42% find the topic too abstract, i.e., they have no connection to share ownership. Lack of knowledge can also be held responsible for those who are uninterested in owning shares, or who fear making the wrong decisions.\u00a0<\/span>\u00a0<\/span><\/p>

Knowledge and emotions are closely linked. <\/span><\/b>When people feel they are uninformed, they develop (irrational) fear and a negative mindset. Conversely, the majority of those surveyed who already own shares have been positively influenced by people they know who invest (and have probably learned from them).
<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

\n\t\t\t\t
\n\t\t\t\t\t

How a good communication strategy can promote a positive investment mindset <\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t

This article began with the concept of culture, and the connected positive emotions such as enjoyment and enthusiasm. And the assumption that stock market investment is a rational topic, that people approach purely from a rational standpoint (with fun being less important).<\/span>\u00a0<\/span><\/p>

Do the study results contradict this? Yes. The survey results show that rationality and emotionality are inseperable partners when it comes to investing in the stock market. Well-informed people who have already invested in shares tend to view the topic favorably, while uninformed people, in the worst case, reject the idea of owing shares from the outset.<\/span>\u00a0<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

\n\t\t\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t

Our solution for increasing knowledge: Address brain and heart \u2013 sense and sensibility <\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t

As communications experts, this brings us to the ways in which we can develop communication strategies and campaigns for employee financial education that:<\/span> <\/span><\/p>\n

    \n
  1. Are emotionally engaging<\/span> <\/span><\/li>\n
  2. Provide employees with the knowledge they need<\/span> <\/span><\/li>\n
  3. Enables them to use their newly-founded knowledge to approach employee share programs with a positive mindset\u2014at least, with curiosity, ideally with enthusiasm.<\/span><\/li>\n<\/ol>\n

    Our approach: Communication campaigns that appeal to the heart, and reassure the brain. How does this work? Let\u2019s find out together. <\/span><\/b> <\/span><\/p>\n

    With our tried-and-tested<\/span>\u202fExplore \u2013 Engage \u2013 Shine<\/span><\/b>\u202fprocess, we develop convincing communication and implementation strategies, and a clear, simple, and effective communication concept. Find out about our successful customer projects on our\u202f<\/span>project page<\/span><\/a>.<\/span>\u202f<\/span>\u202f<\/span> <\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

    \n\t\t\t\t\t\t
    \n\t\t\t\t\t
    \n\t\t\t
    \n\t\t\t\t\t\t
    \n\t\t\t\t
    \n\t\t\t\t\t\t\t
    \n\t\t\t\t\t
    \n\t\t\t\t\t
    \n\t\t\t\t\t\t
    \n\t\t\t\t\t
    \n\t\t\t
    \n\t\t\t\t\t\t
    \n\t\t\t\t
    \n\t\t\t\t\t\t\t