Over Half UK Firms Not Demonstrating Social Responsibility, Study Finds

Three-year study finds companies with a good CSR rating have returns 19% higher than those with a poor rating

Studies prove that companies who consistently demonstrate a commitment to protecting and empowering their employees can not only expect loyal staff but can also attract a growing client and consumer base.

A three-year study found companies with a good CSR rating have returns 19% higher than those with a poor rating.

Consumers and employees are looking for transparency and authenticity from companies, with 59% of consumers stating that businesses have a responsibility to social good.

Tyl surveyed UK business owners to find out what Corporate Social Responsibility (CSR) means to them and how this translates into business success.

The data reveals that more than half UK businesses (52%) do not have a clear CSR strategy. This was highest among hospitality and leisure businesses at 62%, and Welsh businesses at 64%. However, a third (33%) of UK businesses have incorporated CSR in their businesses and this rose to two thirds (67%) among transport/logistics companies.

Despite this, 36% of UK business owners believe CSR initiatives are very important, with 52% of them stating that it adds value to their business. This rose to 67% among businesses in Greater London, the highest of any region. Tyl’s data supports this, showing that taking CSR seriously can see benefits not only for people and the planet – but for profits too:

Tyl asked business owners what they consider to be the main barriers that prevent them from implementing a CSR strategy. 37% of business owners cited a lack of resources as the main barrier, rising to 54% among hospitality businesses. Other key barriers to implementation identified are:

• Financial considerations (38%)
• Lack of measurement system (17%)
• High regulatory standards (15%)

While the survey shows that many UK businesses want to do more, Tyl did find that some business owners are sceptical about the effectiveness of CSR, with 34% considering CSR ‘not very important’, rising to 47% among media companies.

Research conducted by Pennies found more than half of consumers (53%) think the Covid-19 pandemic has created a more caring society that is mindful of other people’s hardships. Almost half (48%) of business owners state that they know they could improve on their current CSR strategy, with 42% pledging their organisation will be more committed to CSR in 2022.

Across all industries, health, wellbeing, and equality was cited as the most important societal development by 46%of respondents. This rose to 77% in the manufacturing industry, followed by hospitality (68%) and media (67%). Climate change was also identified as a popular cause, cited by 40% of businesses.