Business leaders must be seen to act to restore confidence, poll

Thursday 25 February 2010: Two thirds (67%) of business leaders believe that a more responsible economy is likely to emerge from the recession, and nearly all (97%), believe that individual business leaders must be seen to act to restore confidence which has been lost due to the financial crisis, according to a poll by Business in the Community (BITC).

The poll supports BITC’s long-held conviction that responsible business needs to be mainstream, underpinned by governance structures; owned at the highest level in the business; and will be integral to helping UK businesses of all sizes to emerge from the recession stronger and more competitive. Business leaders see their most important role is to understand and manage the impact that social and environmental issues can have on the business and the impact the company has on society and the environment.

The temperature test was taken among BITC’s 330 Leadership Team members – the board- and chief executive-level leaders responsible for helping to shape and drive its national and regional campaigns and strategies – ahead of an annual Leadership Summit hosted by HRH The Prince of Wales. HRH this year celebrates his 25th anniversary as President of the corporate responsibility charity.

Stephen Howard, chief executive of Business in the Community, said: “The results of this survey should serve as a call to action to all business leaders. We cannot continue the way we have been going, we must learn from the mistakes that brought us to the greatest crisis in confidence in business and market capitalism since the 1929 Wall Street crash.

“Our own Leadership Teams, representatives of some of the UK and the world’s most recognisable and powerful companies, have told us that they want to be a part of that solution, and indeed that they must lead by example. Business in the Community is here to support those companies in doing more to ensure that, collectively, we can restore consumer confidence in our organisations, while challenging those who lag behind to step up to the plate and take action.”

The survey also asked respondents to state which three of a series of statements resonated most with them about what responsible leadership means.

The top five responses were:

1. Factoring social and environmental issues into commercial business model - 63% (72)
2. Supporting future business leaders to have a wider appreciation of business responsibility - 36.8% (42)
3. Creating inclusive workplaces and removing barriers to progression - 33.3% (38)
4. Supporting the most vulnerable communities in which you recruit, employ, trade and purchase - 32.5% (37)
5. Talking publicly about responsible business issues and your organisation’s response - 31.6% (36)

The fact that so many identified integrating corporate responsibility into the commercial business model is a step change in thinking and almost a “coming of age” for corporate responsibility. Where once seen as add-on to business, and as the preserve of social philanthropists, responsible business is now high on the business agenda and increasing in significance at board level.

The Summit was held at the East Wintergarden, owned by Canary Wharf Group plc. George Iacobescu CBE, Chief Executive of Canary Wharf Group plc, said: "I am delighted that His Royal Highness The Prince of Wales visited Canary Wharf for this important summit of business leaders.
 
"More than ever before it is important that businesses work with their local communities and think about how to have a positive impact.
 
"We are looking forward to working with Business in the Community to share best practice and continue to develop the community work we started here in 1987.
 
"His Royal Highness has led by example over the last 25 years as President of Business in the Community, and we were very proud to host him at the East Wintergarden in Canary Wharf."

ENDS

Notes to editors

For more information, please contact Clare Haines – clare.haines@bitc.org.uk / 020 7566 8758 / 07786 566 136

Survey results in full:

The poll of 330 board- and chief executive-level leaders was taken between Monday 25 January and Monday 22 February 2010. 115 responses were lodged, achieving a 35% response rate.

To what extent do you agree or disagree with the following statements:

A more responsible economy is likely to emerge from the recession
Strongly agree  12.2% (14) 
Tend to agree   54.8% (63) 
Neither agree nor disagree  15.7% (18) 
Tend to disagree   15.7% (18) 
Strongly disagree   1.7% (2) 

Individual business leaders must be seen to act to restore confidence which has been lost
Strongly agree  74.8% (86)
Tend to agree  21.7% (25)
Neither agree nor disagree 1.7% (2)
Tend to disagree  1.7% (2)
Strongly disagree  0% (0)

Business in the Community should help clarify the basic obligations of responsible business leadership and vigorously promote these     
Strongly agree  61.7% (71)
Tend to agree  31.3% (36)
Neither agree nor disagree 5.2% (6)
Tend to disagree  1.7% (2)
Strongly disagree  0% (0)

Which three of the following best describe what responsible leadership means to you? (Ranked in order from highest to lowest preference).

1. Factoring social and environmental issues into commercial business model - 63.2% (72)
2. Supporting future business leaders to have a wider appreciation of  business responsibility - 36.8% (42)
3. Creating inclusive workplaces and removing barriers to progression - 33.3% (38)
4. Supporting the most vulnerable communities in which you recruit, employ,  trade and purchase - 32.5% (37)
5. Talking publicly about responsible business issues and your organisation’s  response - 31.6% (36)
6. Identifying & developing the skills and talents needed for your organisation  - 28.1% (32)
7. Engaging consumers and employees to raise awareness and help them act more sustainably - 27.2% (31)
8. Preparing your organisation to operate effectively in a low carbon economy - 20.2% (23)
9. Championing a specific responsible business issue (eg Climate Change or  Diversity etc) - 19.3% (22)
10. Engaging suppliers to increase sustainable practice - 15.8% (18)
11. Identifying new products and services which are sustainable - 12.3% (14)
12. Collaborating with others on a specific issue - 10.5% (12)
13. Other - 5.3% (6)