New research from Freeths’ Corporate Conscience Index reveals that political pressure from the US – particularly criticism of equality, diversity, inclusion (EDI) and sustainability initiatives – is quietly influencing how British organisations define “doing the right thing”.
Over half of UK corporates (54%) admit they’ve changed their approach to ethics in response to the evolving landscape, and more than a quarter (28%) have gone as far as overhauling or abandoning their policies altogether. The study, based on insights from 250 general counsels and chief legal officers, paints a stark picture of the tension between profit and principle.
A striking 83% of senior legal leaders say commercial priorities routinely outweigh ethical ones, even as most agree that ethics in decision-making has never been more important. Only a third (35%) of UK organisations are actively tackling ethical challenges, leaving a clear gap between what businesses say and what they do.
This contradiction is particularly concerning given the UK’s public commitment to sustainability, climate goals and stronger social values.
Yet, as Philippa Dempster, senior partner at the B Corp–accredited Freeths, notes:
A drive for profit can easily cloud ethical judgement. Our research shows that while businesses talk about doing the right thing, too many are retreating from that responsibility under external pressure.
Despite the disconnect, there are glimmers of optimism.
Nearly nine in ten organisations have established ethical frameworks and most senior legal professionals say their guidance is being heard at the top. Encouragingly, 85% of businesses report having turned down opportunities on ethical grounds. Still, many believe their organisations could, and should, go further in redefining their role and impact on society.
As Freeths’ Corporate Conscience Index highlights, the UK’s moral balance sheet is being redrawn. The challenge for leaders now is to ensure that purpose, not politics, drives the next chapter of corporate ethics.
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