Public image, political views, and the issues that really matter to today's business leaders were among the many issues addressed in a new survey by Director, in conjunction with the Carbon Trust and HSBC Insurance. When asked to indicate from a pair of words, which one better captured the general public's view of business directors, the majority (over three-quarters) chose greedy and rich. Over half felt that they are seen as selfish and corrupt. On the upside, three quarters also chose risk-taking while half chose skilled.

But the overriding impression is one where business is looked upon in a negative way. According to Rebecca Harding, executive director of the Global Entrepreneurship Monitor (GEM) at London Business School, these findings are at odds with the public's actual perception as measured by the GEM survey.

She says: "Most entrepreneurs think the public see them as money-grabbing, but according to our findings the public think quite favourably of them."

The Edelman Trust Barometer, a global survey of opinion leaders published in January 2007, shows business ranked as the most trusted institution, ahead of government, religious institutions and the media. Edelman's UK CEO Stuart Smith says: "The most important factor in the UK for building trust in business is social responsibility and that starts with creating wealth." Why then have so many directors got their perceptions of how the public see them wrong?

Harding believes the media shoulders some responsibility. "The British press can be quite negative about business and business leaders, yet when you speak to directors the overriding impression you get is that they want to do their job well rather than just make money."

But media scrutiny of "fat cat" salaries, pension failures, and corporate scandals has touched a nerve among business leaders. In the survey, corporate failures and directors' pay were identified by over four-fifths of executives as having the biggest influence on shaping the perception of directors in the eyes of the UK public. The next biggest influencer was the burgeoning reality TV sector—more likely than straightforward news programmes to sway the public, according to directors. Certainly, this trend influenced respondents, who included retired but telly-friendly directors such as Sir John Harvey-Jones and Sir Gerry Robinson in their selection of top leaders.

But this again raises the question of how directors see themselves, as corporate scandals are hardly the scourge of the small business sector. And, when asked how much the media influences actual decisions,
directors rated it lower than customers, employees, competitors or other directors.

Cary Cooper, Professor of Organisational Psychology at Lancaster University Management School, says: "In general, directors of SMEs see themselves as tactical rather than strategic, like the leaders of multinational companies. They don't see themselves in the same mould, but might well assume that the public does, and therefore feel that they are being unfairly tarred with the same brush."

If that is the case, what are they doing to distance themselves and their organisations from the type of unsavoury business activities that attract negative press? If most directors are trying to do the right thing, why aren't they telling us about it?

This is exactly the question asked by business guru Charles Handy, who argues that directors have only themselves to blame for a less than glowing public image, perceived or otherwise. He says: "If the world sees business leaders as greedy, it is because they are always going on about how they are working for their shareholders instead of what they deliver. From the public's point of view, who cares about profit?"

Even for smaller organisations not accountable directly to shareholders, Handy insists that there is a communications gap that must be filled. "They need to do more to trumpet their own values," he says. "The problem is that small businesses are so busy doing what they have to do. But if they are being socially responsible and engaged with the local community, it is up to them to get out and communicate that message, rather than blaming their lot on the media."

Another finding from this survey centred on the level of public support for the UK business leader, compared with the US. Over three-quarters of directors surveyed said that they thought the UK public was less supportive of business compared with the US.

Edelman's Smith says this reflects a step change in attitudes to business and social responsibility across the Atlantic. "The US is just starting to understand that social responsibility is not about how you spend money but how you make money. That understanding has been evident in the UK for some time."

So, does it matter how the public views UK business leaders? Directors themselves clearly feel some anxiety over how they are seen. Is that a bad thing? Definitely not, says Cary Cooper. "What better incentive is there for a business to try and do the right thing?" As a recent study into the treatment of job candidates by Capital Consulting showed, not caring can have a negative impact on a brand, reputation and the bottom line.
Job candidates who are treated poorly, it found, don't just talk to other people about their bad experience, they hit back by withdrawing their custom, with 53 per cent of job seekers actively avoiding buying products and services from a company that treats them poorly.

But the Director survey produced some conflicting responses: asked whether they thought that business leaders should take the lead on climate change and other environmental issues, almost three quarters of directors replied in the affirmative.

When asked what they were prioritising on a day-to-day basis, issues such as climate change and their carbon footprint were lower on the list of priorities than the more prosaic business goals of delivering a good product or service, achieving financial goals, and leadership development. Is this another example of the director's identity crisis: do small business directors not see themselves as business leaders? Or are they doing things, but on a scale too small to warrant making a lot of noise about? Cary Cooper suspects they are simply torn between knowing that they need to be seen to be doing something, but not wanting to do it right now.
He says: "They know that politically they have to come out and say that business should take the lead on environment, but privately many directors are feeling pressured to jump on the climate change bandwagon.

"They know that questions have been raised about global warming and whether in fact it is just part of a natural cycle, and they probably wonder what is the point of doing something when they see what is going on industrially in places like India, China and the US. Given the conflicting information on pollution and climate change they (directors) may even wonder to what extent are we really contributing to this? 'Is it just another way of taxing us?'"

In reality, running a business in a way that is both commercially and environmentally viable can make business directors feel they are in a "no win" situation.

Andrew Tinkler is chief executive of WA Developments International, a Carlisle-based transport, logistics, construction, and civil engineering company. When the company acquired Carlisle airport two years ago, Tinkler immediately found himself facing criticism from the public and the environmental lobby.

He says: "From the public's point of view, we were simply going to make a lot of money. In fact what we are trying to do is generate wealth for the region. Do we want to encourage more people to come to Cumbria and spend their money or should we just let the local economy collapse?"

Environmental groups, on the other hand, raised the carbon emissions issue. "It is true that more flights will produce more carbon emissions," he says. "But people are going to fly anyway, so surely it is better for the environment if they land here in Carlisle rather than fly to Manchester and have to drive 200 miles."

More recently, Tinkler's company launched a new train service for Tesco, running from Daventry to Grangemouth, which will take the equivalent of 27 trucks off the road. As he adds: "If the public knew what business was really doing for the community, and the environment, it would lessen the impact of negative media stories."

Golden wonder

When asked whose leadership and values they most admired, directors had little hesitation in placing Sir Richard Branson at the top of the poll.
With 26 per cent of the votes, he was way ahead of runner up Stuart Rose, the Marks & Spencer CEO (eight per cent). Branson's clashes with BA, and more recently Sky, are legendary and regularly portray him as the heroic entrepreneur fighting his corner. Even when things go wrong with the Virgin brand, Branson still manages to retain his fairy-dust lustre. The recent derailment of a Virgin train in Cumbria demonstrated how a visible presence and a direct approach can benefit a business leader during a crisis.

He is, says David Rooke, a managing consultant at Harthill Consultants, the consummate people's man. "He is not a smooth operator that people may feel inclined to distrust, but a genuine strategist, who thinks outside the box, who achieves, and given some of his crazier pastimes, someone who manifestly enjoys life." 

Interestingly in spite of his large corporate stature, leaders of small businesses still identify with him, not least because his clashes with Sky and BA have a feel of David and Goliath about them, with no questions about Branson's role.

"He is also a pure eternist [sic], with a boyishness that is almost endearing," adds Rooke, "but positioning himself as the underdog is quite clearly a conscious strategy, when you realise just how aggressive he can be in the marketplace."

Beyond Branson, directors voted for a large range of individuals—everyone from their own business leader to Nelson Mandela, Jamie Oliver and General Sir Richard Dannatt.

There are also some telling regional splits: Rose is favoured by 11 per cent of bosses in the Midlands and 10 per cent of those based in the North.
Sir John Harvey-Jones and Anita Roddick seem to polarise voters, gaining particular loyalty in the North and South, while local son Sir Digby Jones earned high scores among Midland leaders.

But it's good to know that our respondents can see beyond celebrity. Tellingly, seven per cent voted for traits rather than named individuals, while three per cent were unwilling to identify anyone as epitomising good leadership. It's also no surprise that 52 per cent felt better training and mentoring would improve matters substantially for all directors.