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- A new survey commissioned by the Lloyds Banking Group Centre for Responsible Business and carried out by YouGov has shown a huge disparity between public opinion on how businesses should behave when it comes to environmental and social issues, and how businesses are conducting themselves. The Lloyds Banking Group Centre for Responsible Business is a strategic initiative from Birmingham Business School. The Centre is funded by Lloyds Banking Group, but operates independently, to help develop insight for businesses to work towards a more responsible future in business. A surprising 50% of senior business decision makers surveyed said that they have no net zero strategy whilst 74% of British adults surveyed say that businesses should have one. Three in ten (30%) senior business decision makers surveyed said that their purpose was to generate profit over sustainability, growth or purpose, whereas 42% of British adults said businesses should balance profit with social and environmental justice and a further 25% saying a business’ purpose should be to make a positive impact on society. Professor Ian Thomson, Director of the Centre and author of Urgent Business: Five myths business needs to overcome to save itself and the planet, said: “At a time where social inequality is growing, and time is running out to meet the target of reaching net zero carbon emissions by 2050, our survey shows that the British public expects and believes that businesses should be taking an active role in combatting these issues.” However, it seems that some businesses are failing to align with public opinion, both on the wider topic of the environment and their impact as employers on society overall. For example, only 13% of businesses said it is important to tackle precarious work in their strategy, whilst 64% of the public expect businesses to do this for low paid, unprotected forms of employment. Similarly, 52% of the public said that the gap between the highest and lowest paid employee should be published in the same way the gender gap is, whilst just a tiny 14% of businesses surveyed said they currently publish this. Despite the demand from the public that businesses act responsibly and have a positive impact, the survey findings show this pressure may have little impact. When asked what would inspire businesses to act more responsibly more people said they believed a business would change out of fear of public boycotts, where only 7% of businesses said this would make them more sustainable. Professor Thomson continues: “These findings show that the public greatly overestimates its power to influence change in businesses behaviour. However, this could be a brilliant opportunity for businesses. 28% of people said they want to choose the most sustainable option, if given clear and trustworthy information about the environmental and social impact of a product whereas only 13% of businesses believed the same. Sustainability and responsible behaviour aren’t just challenges for businesses, but also a chance for them to build a brand based on trust and help futureproof their companies against further legislation (which the survey showed is a popular sustainability measure amongst the general public) and avoid hefty costs further down the road.” There also seems to be a sizable gap in the amount of action taken by smaller and larger businesses. The survey results indicate that very few businesses are taking any radical steps towards become more sustainable and only larger business are making incremental changes. Many small businesses see engaging on social justice and environmental issues as a luxury that only big business can afford. 60% of small businesses said that they don’t regularly collaborate with external people when solving complicated or ongoing problems compared to 19% of large businesses. Professor Thomson, who will be speaking at the Forum for Global Challenges at the ICC in Birmingham on Wednesday 4th May concludes: “Across the board there is a huge gap between what the public expects from business and how business acts when it comes to sustainability, whether it is global warming and the environment or unstable employment and social injustice. What this survey proves is that business is stuck in the traditional view of what it’s purpose in the world is. As we outline in Urgent Business, the business community needs to completely revolutionise the way it sees itself and make radical changes in order to reach net zero and have a positive impact on the world. If business doesn’t make the most of the time we have left to make these changes, then before we know it, it will be too late.” -ENDS- For more information, please contact Tony Moran, International Communications Manager, University of Birmingham on +44 (0)782 783 2312 or t.moran@bham.ac.uk For out-of-hours enquiries, please call +44 (0) 7789 921 165. Notes to editors About the Lloyds Banking Group Centre for Responsible Business The Lloyds Banking Group Centre for Responsible Business is a strategic initiative from Birmingham Business School. The Centre is funded by Lloyds Banking Group, but operates independently, to help develop insight for businesses to work towards a more responsible future in business. You can find out more about the Centre here. About Professor Ian Thomson Ian Thomson is Professor of Accounting and Sustainability and Director of Lloyds Banking Group Centre for Responsible Business at the University of Birmingham. For over 25 years, he’s pioneered the inclusion of the environment and sustainability in accounting practices and worked with governments and NGOs on a wide range of issues, including climate change, public infrastructure and global food production. Prior to academia, he worked as a management accountant for the NHS and BBC in Scotland. He is currently Convenor of the Centre for Social and Environmental Accounting Research and a world-leading expert on carbon accounting. Professor Thomson is available for interview. Please contact Ellie Hail at e.hail@bham.ac.uk or on 07910029080 to arrange any interviews. About Urgent Business In Urgent Business: Five Myths Business Needs to Overcome to Save Itself and the Planet Ian Thomson and Dominic Bates, a business school professor and a former journalist, combine cutting-edge research – from AI and systems theory to climate science and behavioural economics – with fascinating real-world examples, to debunk five common myths that prevent businesses from seeing themselves as part of the solution: Myth 1: A successful business is a growing and profitable one Myth 2: Only manage what you can measure Myth 3: Laser-like focus gets results Myth 4: The consumer is always right Myth 5: Irresponsible decisions are made by irresponsible leaders Combining their expertise, they offer a manifesto for change that highlights the practical and holistic steps all businesses can take to play their part in addressing the UN’s 17 Sustainable Development Goals, which are crucial if businesses are to save themselves and the planet. About the Forum for Global Challenges The Forum for Global Challenges is a major international meeting that will showcase and generate solutions to some of the most pressing challenges faced by our planet and its people, from climate change and destruction of the natural world, to rising inequality, especially exacerbated by climate change and the global pandemic. Join us for a unique programme of the inaugural Forum in Birmingham, 3-5 May 2022. https://www.forumforglobalchallenges.com/ Methodology: All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 1104 senior business decision makers and 2233 GB adults (18+). Fieldwork was undertaken between 23rd February – 10th March 2022. The survey was carried out online. The figures have been weighted and are representative of business size and GB adults (aged 18+) respectively.
