UK business leaders demand bold economic reform as new data shows public agreement
Just 1 in 3 UK adults say business is good for the economy and 1 in 4 think it helps society
Vast majority want businesses to pay more attention to social and environmental issues
New partnership of cross-sector economic experts calling for radical policy reform
As polling shows the UK public want business to do better for the economy and wider society, a new campaign by cross-sector experts calls for radical policy change.
New research reveals that a third of UK adults feel business has a positive impact on the national economy, and just a quarter believe it benefits wider society, while many said it has no impact at all or is actively negative. This may explain why just 15% think the national approach to business should stay the same, with campaigners urging bold reform.
The research was published by the Future Economy Alliance, a growing partnership of organisations who believe that profits must also benefit people and planet. The Alliance unites social enterprises, co-operatives, mutuals, employee-owned businesses, social investors, community-led organisations, fundraisers and third sector experts who propose a new business plan for Britain.
Research findings highlight public support for such purpose-driven business models, with most (59%) saying businesses should give social or environmental concerns equal or higher priority to profits and just 2% saying businesses should always put profit first.
Overall the research found public trust in big business is low - perhaps unsurprising with headlines around bumper corporate profits in a cost of living crisis or scandals in the CBI - but people placed significantly more trust in these purpose-led businesses than traditional companies.
Just 20% felt big businesses were trustworthy, and even fewer (15%) trust energy suppliers and private utilities companies specifically, likely linked to recent issues like energy bill rises and the Thames Water financial crisis. Only 1 in 20 believe private businesses should provide essential public services like water and energy, with most people saying they should be state-run, while around a fifth would have them provided by purpose-led businesses.
The research also shows massive public support for policy changes that encourage transparency, with more than 75% demanding a legal requirement for all businesses to publicly report details of their ownership as well as profits and losses.
Peter Holbrook, CEO of Social Enterprise UK (which commissioned the research on behalf of the Future Economy Alliance), said: “These findings make it very clear that people are no longer happy with ‘business as usual’; there is real appetite to challenge the status quo and build an economy where our entire society profits.
“Business can and must work in a way that actively benefits people and planet, sharing profit and power to drive real change. The UK’s pioneering minority of purpose-driven businesses that we represent in the Future Economy Alliance need to become the norm.”
Cross-bench peer and social entrepreneur Lord Victor Adebowale added: “With the UK economy facing significant challenges, our country needs a bold and ambitious vision: a new business plan for Britain. Sadly, this is not forthcoming at present, so the Future Economy Alliance has been established to drive the business of change.
“Our partnership of cross-sector business experts will assemble the best examples from across the UK of what’s working well but also how and where business can do better. We can transform the UK economy, enhance our nation’s prospects, and restore a sense of hope and pride – within public services, within communities and within us all.”
Join the campaign at www.futureeconomyalliance.co.uk and follow @FutureEconomyUK on Twitter.