UK expectations of a ‘good business’ shift from profits to responsible conduct
October 17th, 2024
The UK public’s expectations on what defines a good business have shifted, with growing demands for companies to make a more positive impact, according to SEC Newgate.
The fourth edition of SEC Newgate’s annual ESG monitor found that the public’s criteria for a good business is no longer based solely on profit as 57% of respondents expect companies of all sizes to play a more active role in society.
While most of the public expects all businesses to have a positive impact, larger businesses are being held to a higher standard, with 75% reporting they think it is important for bigger companies to conduct their business in responsible ways.
It’s not just the UK public that expects large companies to conduct themselves responsibly as investors hold even higher expectations, with 81% believing large businesses should, compared to 72% of non-investors,
Despite public expectations for companies to drive positive change, only 42% of the UK believes that companies of any size behave responsibly and there is a significant gap between the importance of behaviour and actual performance.
Larger businesses are once again held to a higher standard but are falling short, with a 32% performance gap. In contrast, small and medium-sized businesses are closer to meeting public expectations, showing a 13% performance gap.
The UK government showed the largest performance gap of 37%, driven by the highest expectations (79%) but the lowest perceived performance (42%).
The report also found that 70% of the respondents want to hear how companies are improving their responsible business performance.
This sentiment is particularly prominent among younger generations, with Gen Z leading the way – 66% believe it’s important for companies to address environmental issues while 57% expect them to speak out on political matters.
In comparison, Baby Boomers place less emphasis on these issues (52% on environmental and 30% on political), followed by Gen X (45% environmental, 31% political).
Leyla Hart-Svensson, head of research at SEC Newgate UK, said: “The research shows that corporate responsibility remains a growing trend and public expectation – and this lies at the heart of what it means to be a good business with a good reputation.”
Related
Last Updated: 18 October 2024
