Navigating public expectations amidst changing corporate commitments

With the likes of McDonald’s, Amazon and Meta rowing back on DEI initiatives, and members of the Net Zero Asset Managers initiative in the US being probed by public officials over prioritising ‘woke investments’, our Responsible Business event in Birmingham, held jointly with Emperor at Eighteen at 103 Colmore Row, came at a very opportune moment.

With the West Midlands widely acknowledged as the birthplace of the industrial revolution and the centre of the UK’s car manufacturing industry, it was also fitting to bring a discussion on sustainability and responsible business practices to Birmingham as the region continues to reinvent itself with a focus on sustainable regeneration.

The conversation centred around our annual research into what the public expects from businesses in terms of responsible behaviour and to what extent companies are meeting those expectations. Our expert panel comprised Anna Bright of Sustainability West Midlands, Matt Sherlock of National Grid, Bayard Rezos of Emperor, and our own head of research, Leyla Hart-Svensson. 

The panel noted that, despite a softening of regulations and targets around sustainability and responsible business practices, the public’s expectations of companies’ behaviour were only getting higher.

Almost two thirds of those surveyed said they expect companies to play an active role in society, while three quarters said it is important for large companies to conduct their business in responsible ways. However, only 42% agreed that companies are generally behaving responsibly and doing the right thing.

The research also highlighted that the public wants to hear more from businesses on their efforts to be more responsible. 7 in 10 agreed that companies should communicate more clearly what they are doing to improve their performance on ESG issues, albeit 54% said that greenwashing is a problem. There was also a generational split when it came to companies speaking out as an active corporate citizen. Over 70% of baby boomers felt companies should only speak publicly on social issues related to their business, while 63% of Gen Z respondents said it was ok for companies to speak publicly on social issues that are not necessarily related to their business. This suggests a growing desire from consumers for companies to take a moral and ethical stance – particularly around environmental issues (66%) but also around politics (57%). 

The audience rounded off the event with multiple questions, passionate comments, and interaction and debate both with the panel and each other, highlighting that this topic remains important regardless of a growing anti-woke movement being felt in the US and, to a certain extent, in the UK too. Indeed, members of the audience shared their feelings of fear, frustration and powerlessness in a world where significant – albeit slow – progress towards equality and sustainability has been made but now appears to be at risk of being undone. Nevertheless, the panel concluded that, although governments and regulation undoubtedly have a big impact on business responsibility, ultimately successful companies will continue to move to be more responsible, sustainable and ethical because that’s what their customers demand from them. And those that are able to communicate their efforts authentically and in a way that resonates will be set to outperform the pack.