If businesses want to be trusted, they have to do the right thing

Trust in business is a long-standing debate. This session at the CBI Annual Conference 2020 discussed why improving trust in business matters if the UK is to build back better. On the panel were:

• Josh Hardie, Deputy Director General, CBI
• Frances O’Grady, Secretary General, TUC
• Helen Lamprell, Director, Vodafone UK
• Ben Page, CEO, Ipsos Mori
• Julian Richer, Founder, Richer Sounds
• Chair: James Harding, Co-Founder and Editor, Tortoise Media

Action by business to support people and communities is recognised

Josh Hardie indicated that businesses have been thinking about Build Back Better since the onset of the pandemic. The CBI shares the TUC’s view that in building back better, the UK should aim for “good green jobs, close to home”.

He noted that action taken by business over the pandemic to protect jobs, support the national effort and support communities has “shown society that there is another side to business”. Most notable is the evolution in relationship between managers and employees, which now is predominantly pastoral. Ben Page showed this is backed by Ipsos Mori

which found 70% to 80% of workers were positive about how their business had responded in the early phases of the pandemic.

Despite the current economic challenges and second lockdown, there remains appetite among businesses to build back better. CBI / Ipsos Mori research found that two-thirds of businesses have committed to increasing their investment towards net zero and the same proportion are acting to be more diverse and inclusive.

This way of working should not just be for a crisis

In a tribute to Carolyn Fairbairn, Frances O’Grady said that working together with the CBI and Chancellor on the furlough scheme is “proof that even when you are representing different interests…we can work together in good faith.” This way of working shouldn’t only happen during a crisis, and both the CBI and TUC are calling on government to set up a national economic recovery commission to help the UK economy as it emerges from the pandemic.

The question of trust won’t go away until we tackle inequality

Systemic inequality has been exacerbated by the unequal impact of coronavirus and spotlighted by the killing of George Floyd and the subsequent Black Lives Matter protests. Helen Lamprell stressed that business can balance responding to coronavirus and social and environmental matters as they are not “not mutually exclusive”. She added that “if businesses want to be trusted they have to do the right thing but also talk about it” and research indicates that 68% of the public want business leaders to speak up. All panellists agreed that firms needs to follow up words with action. Ben stressed that the public want business and government to act and “there is huge latent permission for people in authorities of all kind to just do things now”.

It’s all about the people

Julian Richer set up the Good Business Charter (GBC) earlier this year to “give good businesses the recognition they deserve”, move the dial on responsible business and signpost the public to good businesses who are not in the spotlight.

“It’s all about the people” he stressed. Business leaders need to listen to employees, have high expectations of them but give them something in return. At Vodafone, the crisis has been an opportunity for employees from the CEO to engineers to contact centres to work more closely together as remote working has facilitated conversations. These led to new and enhanced people policies such as global maternity leave, domestic abuse and paternity leave.

Take only what you need

Businesses need to show financial fairness to build trust. On the furlough scheme, Josh said that firms should take “only what [they] need”. Frances added that the TUC is pushing for “something for something” from the Treasury, meaning that if the government is supporting businesses financially it should outline the behaviours it wants to see from business in future.