BYND
Welcome
Hello! And welcome to the very first issue of our new magazine: BYND.
In here, you’ll find a mix of insights, opinions, guest contributions and thought-provoking articles. Think of us as a must-read supplement to www.kpmgbeyond.co.uk.
We’re always keen to hear from you, so do let us know what you think at beyond@kpmg.co.uk
Deborah Holmwood Director of
Client Experience, KPMG Beyond, KPMG in the UK
In this issue
In this issue, we’ll be considering ‘trust’ and what it means to us as consumers, business leaders and employees. It’s a powerful topic and one that inspires a lot of feeling on either side of the debate. But, what does trust actually mean to us? And in commercial terms, is trust interchangeable with brand, reputation, or loyalty?
When you think about your favourite brands, what is it that draws you towards them? Is it the product and its quality? Is it how the brand communicates to you and makes you feel part of something bigger? Is it because the company or service is steeped in purpose, making you/your environment/the world a better place?
Or is it simply the price?
Every day we unconsciously ask these questions as consumers, but we need to be explicitly asking them as businesses. Aside from profitability, these fundamentals help senior decision makers control everything from the basics of supply and demand, operational resilience to workforce numbers.
They can also strongly influence innovation and development, product and market diversity, and business longevity.
In short there is no ‘one-size fits-all’ approach to this stuff.
So how do you get to the heart of why your brand resonates? How do you retain its credibility as economic and societal uncertainty influences the environment around you? For a masterclass that answers these questions and more, I’m compelled to take inspiration from Taylor Swift and her Eras Tour. Right now, Taylor Swift the brand, is bigger than Taylor Swift the musician – and there’s a lot we can learn from how she’s achieved that. In the last two years she has:
• Created and released two major albums and picked up multiple Grammy awards for her troubles.
• Gained complete ownership of, re-reordered and released new versions of her back catalogue of music following a lengthy legal dispute around her previous record label which saw her form her own label and take control of her brand.
• Entered into a partnership (ok a relationship) with a leading player in the National Football League (NFL) which resulted in a +400% increase in merchandise sales and his shirt becoming one of the top five selling jerseys in the NFL – within 24 hours of being seen together1
• Established herself as an economic catalyst, with some estimating that her tour could generate $4.6 billion in North America alone from spending on tickets, merchandise and travel2 and;
• Kickstarted a major conversation around sustainable travel having been criticised for her carbon footprint as a result of her two private jets, with studies being conducted as to how big her carbon emissions really are.3
And this isn’t even to mention her being named as the second richest self-made women in music – the ultimate female entrepreneur.4
She really is a fascinating case study into the power of brand and reputation and should be considered essential reading on what success looks like for business leaders.
In this quarter’s magazine, we’ve brought together a collection of experts to explore this theme in depth, developing a 101 guide to strengthening the relationships you have with your people and customers. We hope you enjoy this first issue, and don’t forget to head back into your favourite Beyond communities to continue the conversation and have your say. B
CONTENTS
P6-11
Reputation: it starts with your people
Reputation. It’s a remarkably simple thing on paper but so incredibly complex in practice...
P14-19
Brands and the brain
The world is full of brands. Millions, in fact. But ask someone to recall the strongest, and a handful are guaranteed to emerge.
P22-23
Focus on consumer goods
Despite a fall in inflation and a rise in wages, consumers are still struggling with high costs, not least their mortgage or rent and their energy bills.
P24-27
"Just make it look pretty"
Behind every great business venture is an even greater marketing team who made it a success...
P28-31
Brand, choice and sustainability
There are so many complex, dynamic and frankly, impossibly unpredictable factors that drive consumer behaviour.
P32-37
P38-43
No ESG? No capital then.
It is difficult to overstate the rapid acceleration of ESG up the board agenda among businesses, financial institutions and investors over recent years. 01 11 05 12 04 02 06 03 07
How do you solve a problem like greenwashing?
Greenwashing is something you and your business need to take very seriously.
08
P46-49
Do you really need to be sold on the importance of cyber security?
The cyber threat landscape continues to change at speeds that even the best cyber professionals struggle to keep up with.
P50-53
Ready to report on cyber risk?
The prioritisation of cyber security is crucial for businesses of all sizes. But, with cyber threat so sophisticated now, it’s difficult to know where to start.
09 10
P54-59
Is it brave to be really real?
Social media, and the way in which we put ourselves out into the world – both as individuals and as companies – is a fascinating thing...
P60-63
Named and shamed
It can be easy to get national minimum wage wrong. In many cases, underpayments are not be deliberate.
P64-67
It's time we took fraud seriously
There’s a real concern all across the UK that fraud is now at unprecedented levels – with fraud accounting for over 40% of crime.
A brand new you
A positive personal brand is beneficial to both you and your organisation. So, why don’t more people work to develop one?
In any business, leadership teams are the driving force for deciding how the business chooses to operate. 14 13 15
What Taylor Swift taught me about the power of my brand
Your brand is what people say about you when you are not in the room.
A balancing act: The needs of many or the needs of a few
Reputation: it starts with your people
Author: Alastair Swindlehurst, Founder, EZHR
Alastair is the Founder of EZHR, a subscription-based HR solution designed to cut through the clutter of pedestrian and routine HR advice, delivering straightforward and impactful guidance to scaling businesses. With EZHR, Alastair aims to lower the barriers to accessing genuinely valuable HR insights.
Before launching EZHR, Alastair accumulated 15 years of experience working in-house for leading Blue Chip FMCG, manufacturing companies, and global BPO organizations. His expertise spans across employee relations, organisational change, development, TUPE, and business sales.
In addition to his work with EZHR, Alastair hosts The Alternative Business Review, a podcast offering early-stage founders a candid look at the realities of starting and growing a business.
Reputation: it starts with your people
Reputation. It’s a remarkably simple thing on paper but so incredibly complex in practice.
And never more so than now. People are looking for safe havens and who can blame them?
Continuous and disruptive change, crumbling trust; even the way we work has been turned upside down. Add to that, geopolitics, elections, economic uncertainty – it all piles up.
People want a sense of certainty from the workplace. They want to know who they’re working for and what they stand for. It’s something I’m starting to hear in my conversations with clients, but also from the people who join our firm. They’re looking for meaning and for connection.
The same is also true for consumers. They crave stability, they seek brands they can trust, brands that stand for something meaningful. But building brand trust isn’t just about crafting a compelling narrative; it’s about ensuring that narrative is backed by substance, by a workforce that embodies the values of the brand.
Leading by example
When it comes to best practice we need look no further than one of the biggest names in pop right now.
Taylor Swift has not just arrived, her rise has been long, intentional and building towards a global tour that turns over $4 billion. This is no happy accident, there are a multitude of moving parts, and for as much as we don’t appreciate this when we’re screaming out her latest banger, this is a multinational corporation.
Like any multinational business, she has employees and as a consequence, she has to engage her teams to make sure that the customer gets value for money.
To that point, she is astute and all the decisions may not be hers. She is still the person who hired these people and allowed them to get on with what they do. But as the CEO of her brand, she and her team will need to protect the brand and their point of difference.
While working for Swift may be complicated and she will clearly require a lot, there are numerous stories of making sure that her team feel supported and recognised.
One of the most memorable incidents is that Swift structured a two-month break in the Eras Tour so her main guitarist, and one of her constants, Paul Sidoti could take time off to be at the birth of his new child.
While for us mere mortals this may fall into the ‘standard’, for those living in the rough and tumble of live entertainment, such sentiment is often left wanting. Whether it is this or a luxury holiday for her team, she rewards those who put her fans at the heart of what Team Swift does. That’s priority number one, that’s why she can do the Eras Tour and create an incredible environment that is seen more than just a moment in time. She is more than an impresario, she is leading a cultural movement and we’re all aboard for the ride.
People are looking for safe havens and who can blame them?
While this may not make you the billions that Taylor can enjoy, it’s worth considering how she goes about doing this.
The power of workforce integrity
Your ability to be clear about what you stand for, and the language you use in communicating it, is crucial. This is especially true for the new workforce coming up the ranks. Gen Z and Millennial cohorts are far more scrupulous and far less accepting of a narrative that’s got no substance.
When your employees live and breathe your brand values, it results in authenticity and transparency, which in turn resonates with consumers. A workforce that operates with integrity builds trust not just internally, but also with the wider audience.
Attracting and retaining talent in a shifting landscape
The relationship between employer and employee is no longer onesided. Today’s workforce prioritises purpose, flexibility, and impact. They want to work for organisations that align with their values and interests.
They want to know your impact on society, your commitment to learning and growth. They want to see it and be a part of it. They want certainty, support, and yes, trust. And that’s hard, especially in this economy.
Psychological safety isn’t about avoiding tough conversations. It’s about open communication, explaining decisions, and linking them back to your brand.
People need to be able to understand why those decisions happen and what they mean. They may not like it, but they understand it and that’s success.
As leaders, you need to be able to do this in a world where you explain rather than justify. Too many leaders try to justify, but the world is so uncertain, you’ll never keep everybody happy.
Not only that, but realistically, people don’t have a career in one place anymore. They come in, learn, and create opportunities for the future, whether that be with that firm or somewhere else.
The shifting dynamic between the employer and the potential employee
It’s about finding the right balance. It should be 50-50. Historically it was all about the employer. But over recent years, it’s shifted in favour of the candidate looking for the role.
So, what’s your impact on society? What learning opportunities do you provide? What’s your stance on mobility and flexibility? These are the conversations you need to be having.
Aligning brand narrative with lived experience
This is all underpinned by your brand and attraction narrative, which must be borne by the lived experience. Otherwise, people will soon realise it’s not what they signed up for.
People won’t just fall for the traditional recruitment hype of a company.
It’s harder than ever and while it’s scary, you can’t afford to stand still.
For some organisations, you could have as many as five generations under one roof. That means you must adapt and practice learning agility as part of your purpose. That’s what we call your test-andlearn mindset, your commitment to continuous improvement.
It creates an environment where mistakes are okay; your employees know they’re part of an open and inclusive organisation. It’s an environment of authenticity. The worst thing you can do is pretend you’ve got it all sorted, because the world changes so quickly.
How do we create learning agility? How do we create a recognition that things are changing so fast? How do we learn from the future, not the past?
By demonstrating a commitment to continuous improvement - show your employees and consumers that you’re prepared for the future.
A strong brand, built on a foundation of workforce integrity and a commitment to learning agility, provides stability and certainty in an uncertain world. This attracts and retains top talent, fosters consumer trust, and ultimately drives long-term success.
That starts from the inside out - with your brand, your purpose and your reputation. B
Alastair Swindlehurst, Founder, EZHR
Beyond Where leaders belong.
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Beyond was built specifically with leaders like you in mind, a place that is truly your space to explore and collaborate. Join over 6,500 business leaders who use Beyond to problem solve in real time, seek advice and guidance from subject matter experts and get inspired by the latest opinion pieces from KPMG’s experts, as well as external voices from the likes of Google to central government.
Register your place now: www.kpmgbeyond.co.uk
Author: Alex Ayin, Founder, Elite Team Tactics/Marketing Director, Wiser
Alex is the current Marketing Director at Wiser, one of the largest employer branding and early talent agencies in Europe. Wiser partners with companies like the BBC, Nike, ASOS, and the Post Office to transform their employer brands so they can attract the talent needed to drive the business forward. His expertise & knowledge has enabled businesses to grow rapidly, embed cultures of high performance and build recruitment marketing campaigns that attract the best talent in the industry.
Previously, Alex was a board member and commercial director of Social Chain Group, working across the UK, Germany, US, and media businesses. Contributing to the meteoric rise to 700+ employees with 9 figure annual revenue within 4 years.
Alex has recently launched a free weekly newsletter (www. eliteteamtactics.com) to share the tactical advice from some of the world’s most successful teams and leaders on how to craft a highperforming culture.
For more insight or questions for Alex, please reach out to him on LinkedIn at “Alex James Ayin”.
Or Subscribe to his newsletter for free at “www.eliteteamtactics.com/ subscribe”.
Brands and the brain
Author: Alex Ayin, Founder, Elite Team Tactics/Marketing Director, Wiser
The world is full of brands. Millions, in fact. But ask someone to recall the strongest, and a handful are guaranteed to emerge – Apple, Google, Amazon, Coca-Cola to name a few.
Google’s brand is so powerful that “Google” is now a verb (the action of searching the internet). The same could be said for Hoover – the brand and product (vacuum cleaners) have become synonymous.
But what exactly creates strong brands?
Brand managers typically use multiple strategies to help improve the strength of their brand. From using integrated technology that creates a seamless end-toend customer experience, to incorporating techniques such as quality cues to increase the perceived value of their brand.
In recent years, brands have also needed to hold (and deliver on) a clearly articulated brand purpose –increasingly, one that is meaningful and resonates strongly with the consumers’ changing needs and preferences. Some of the most successful brands of today are leveraging techniques from within behavioural science to do just that.
02
Deciding on your brand frame
One of the most powerful concepts in behavioural science is the frame. Simply put, a frame is your interpretation of reality. Our senses are constantly bombarded with stimuli, and our brain uses frames to make sense of the chaos. Think of it as the user interface for your neural activity.
One way of creating a brand that resonates with your customers is deciding what your brand frames will be. There are 50+ different types of frames however a word of caution - never choose more than three. It’s impossible to be known for too many things, for example Domino’s Pizza is known for these two frames - speed & guarantee whereas Patagonia is known for these three framesvalues, quality and sustainability. To spark some ideas, here is a short list of some of the most powerful brand frames:
• Market leader: setting the industry standards and guiding the markete.g. Salesforce
• Size: highlighting advantages related to the scale or physical size which delivers customer efficiency - e.g. Amazon
• Quality: associating superior craftsmanship or customer service with your brand - e.g. Apple
• Preference: Catering to specific tastes or requirements - e.g. Oatly offering dairy-free alternatives
• Speciality: providing specialised products to cater for a specific niche - e.g. Pioneer products for DJs
• Design: providing distinctive aesthetic or functional design that stands out - e.g. Dyson vacuum cleaners
• Identity: giving customers a way to express themselves through the product - e.g. Rolex
• Reliability: delivering consistent performance that can be relied upon - e.g. Post Office
• Humour: using wit and comedy to make your brand more relatablee.g. Dollar Shave Club
Choose the frames that are authentic to you and differentiate your brand the most from the competition.
Data, personalisation and habitformation.
Another example is to use data to form personalised, relevant, and targeted experiences that in turn drive habit-forming behaviour and a form of psychological dependency in the customer. Let’s take TikTok as an example.
The platform’s algorithm is incredibly powerful, collecting huge amounts of data on your viewing habits to determine your future content offering.
The result? Hours and hours of compelling footage, personalised to your tastes and desires, that even you didn’t know you wanted to see. Amazon’s “customers also bought” and the Netflix “recommended for you” are other examples of data being used to create personalised experiences.
This drives habit-forming behaviour –
from checking Facebook first thing in the morning to always using Amazon to buy your next product.
However, it’s important to note that consumers are starting to become more sensitive to how their data is used to drive behaviours. Ethical use of data is key, and while brands might tap into our historical online behaviours to create more personalised products and services, how they do it and to what degree needs increasingly cautious consideration.
Availability bias: what you see is all there is
The power of strong brands also lies in the way they can enter our deeper consciousness.
For one person to choose a brand over another, all things being equal, we must first know that the brand exists. Not only that, but it must be a living, breathing entity in our world, present in information, news, media and our day-to-day interactions.
This contributes to what is known as availability bias, a mental shortcut that relies on immediate examples that come to mind when evaluating... a specific topic, concept, method or (in this case) decision to choose one brand over another.
As Daniel Kahneman puts it in his book, Thinking Fast and Slow:
“What you see is all there is.”
In the same vein, Richard Shotton writes in The Choice Factory:
“If someone went to the shampoo aisle and spent an hour analysing the price and utility, you would think that person insane. It’s essentially sensible to buy the most popular one, the one that’s been on TV, the one that springs to your mind – the one that’s most available”.
Think about football players wearing adverts on their tops, if we see 11 men with the same logo on them for 90 minutes, we will build familiarity with the brand.
Social proof, herd behaviour and the power of the crowd
Big brands also tap into our innate desire to belong to and fit in within a community. ‘Social proof’, a term coined by Robert Caildini (Influence: The Science of Persuasion), is the psychological phenomena of copying the actions of others or adapting our behaviour according to what others are doing, which in turn contributes to herd behaviour.
Apple’s ecosystem of products feeds into such a desire. The brand encompasses phones, earphones, watches, tablets and more. The ecosystem therefore not only makes functional sense (the parts working together), but emotional sense.
An uptake of users across the products will mean that consumers are more likely to feel that if they also bought the brand, they too would fit in better. This also helps explain why social media influencers can be so powerful for influencing mass consumer behaviour.
A word of caution
Endorsement from a high-profile influencer is likely to generate a behavioural change in consumers as a result.
This is because consumers look up to influencers and in many ways, want to join the community of followers and imitate someone they admire.
Gymshark made its millions from such a model.
TikTok has also used the power of social proof, with users taking part in challenges or specific dance routines that lead to an incredible – often times, globally recognised - snowball effect.
Brand teams should ask, what features or functionality can they use to drive forward a sense of community within their customer base?
The returns of this can be huge, leading to increased customer loyalty and users who want to keep coming back, again and again.
YouGov’s best brand rankings 2024
It’s important to recognise that the use of behavioural science to create strong brands does not come without challenge.
If brands are to use behavioural science to create desired behaviours, they must ask themselves if the actions they are trying to incite in the consumer is ethically or socially right.
Put simply: is it good or bad for the customer?
Nudge theory refers to implementing behavioural science techniques to “nudge” consumers into doing a desired action.
This can be used for good, such as when public health brands send text reminders to remind individuals to book their annual health check-up. But it can also be for bad – known as “sludge” – where the behaviours encouraged have a negative impact on the customer.
Ensuring ethical and social considerations are kept front of mind will help to reduce the risk of any backlash. B
Use AI to
03 Focus on consumer goods
With economic crisis, inflation, fluctuating energy bills, potential tax hikes, it’s no surprise that consumers are still struggling.
But while they may be struggling, they are still spending – only smarter. We’ve seen a number categories remain resilient against this challenging backdrop, and retailers should feel optimistic of an upturn. So it’s important that they prepare for it.
What does that mean for consumer goods companies and brands?
Firstly, with consumers still struggling with high costs, let’s think about their spending and their behaviour.
A nervousness around the aforementioned tax rises and the cost of putting the heating back on when the cooler weather arrives has created a fragile confidence.
Consumers will continue to be driven by price and value, and so they’ll continue moving from brand to brand to find the best price.
It’s here where your brand’s promotional activity will prove key.
The winning consumer goods companies here will be the ones with strong brand equities.
What’s the takeaway?
Now is the time to invest in building the value of your brand and avoid the usual temptation to cut back on marketing spend.
Another theme to consider is channel shift and distribution. Online only strategies will continue to struggle as it’s an area that faces increasingly high costs to serve.
At the same time, customers are seeking that in-store experience.
While it’s true that many do buy online, customers want the physical experience a store delivers, especially when they’re exploring new products and brands.
We’ve seen this throughout 2024 with the growth of retail parks. Consumers need a holistic experience. For example going to the cinema and restaurants and potentially purchasing around that.
What about consumer businesses?
Well, if your brand is across physical and digital, then think about how you leverage these two channels for an
engaging and seamless experience for your customer.
If you’re online only, where could you partner to become part of a consumer’s experience of something else? Using social perhaps?
So where do you focus?
The area to think about is tech. We know that retailers will continue to innovate tech so that they can enhance the customer experience at the point of purchase.
And the data base those retailers are building provides invaluable insight brands can use to get ahead.
The winning consumer brands here will be the ones that can partner with retailers on the tech and use joint data insights to give a great customer journey, and establish your brand as a winning one.
So, what’s the takeaway on tech?
You have to get your core technology operating as effectively as possible.
That way you can get your data and analytics to give you real insights to drive action, and then you can think about how you can better position your brand as a brand of choice. B
Now is the time to invest in building the value of your brand.
Just make it look pretty
Meet the author: 04
Author: Deborah Holmwood, Director of Client Experience, KPMG Beyond, KPMG in the UK
20 years of agency and in-house delivery hasn’t dulled Deborah’s passion for communications in all its forms. She loves getting her hands dirty with the practical side of comms but finds strategy and business planning just as exciting. Her creativity and copywriting skills have earned her a variety of awards and she’s worked across several sectors and differing industries throughout her career giving her a uniquely diverse and wide ranging knowledge.
Just make it look pretty
Why marketing is so much more.
Author: Deborah Holmwood, Director of Client Experience, KPMG Beyond, KPMG in the UK
Behind every great business venture is an even greater marketing team who made it a success...
Henry Ford has often been described as a ‘marketing genius’.
And while he may be known for revolutionising the automotive industry with his production expertise, he outright recognised a gap in the market and identified a customer need in the first place.
The masses needed affordable cars. He found a way to make that happen.
This is the foundation for great marketing.
He understood the power of the consumer and how the desires of your target market should be the driving force behind the evolution of your products and services.
Your goal may be to achieve continued market share and prosperity, but ultimately your
biggest success factor is your consumer base. How you communicate with them is essential.
A century may have passed since Henry’s foray into the world of marketing, but the essence of what marketing is has remained as true as ever. It continues to influence decision making within a consumer base, but it also plays a key role within the business itself.
Marketing sits a lot closer to the other parts of the business than people may realise. For example, they’re able to drive customer loyalty through their knowledge of the market, the motivations of the audience, and the product; they’re able to see external data and behaviour around a certain product and use that information to adapt or even remove the product entirely. I could go on.
These are of course specific examples, but the principles of marketing, communicating the right information to the right people in the right way to influence change, can be seen in all corners of an organisation. After all, an internal stakeholder is an internal customer.
There’s potentially an argument to say that the C-suite, generally, isn’t as well versed as the rest of the business is, as to the significance of marketing or what exactly their marketing teams do.
As a result, marketing teams often speak of the internal buy-in being equally as important as the consumer buy-in. A lot rides on the marketing team’s ability to communicate ROI to wider stakeholders within the business, which helps to demonstrate the value marketing brings - from improving the product to increasing sales or building trust and solidifying reputation.
Failure to communicate this effectively often results in the stifling or even disabling of marketing activity, and their ability to contribute to the business’ overall success.
When asked what they think marketing is, many non-marketers will describe it as creative design, brand awareness or even ‘the team that hand out pens at exhibitions’. But these roles aren’t in place just to make things look pretty or shout the organisation’s name from the rooftops.
They play a much wider and more integrated role than you’d think.
So, then, what is marketing?
While yes, aesthetics do play a role in marketing, it goes far beyond that, getting to the heart of what the consumer wants, understanding their needs and motivations – sometimes before the consumer knows themself.
It encompasses every aspect of a business, from product development to customer service, and is essential for creating awareness, generating leads, and ultimately driving sales through data-backed decisionmaking.
It’s about creating value, building trust, and fostering long-term relationships. It’s the art of turning prospects into loyal customers; it’s the engine that ultimately drives business success.
Because, no matter how great your product or service is, without people knowing about it, who’s going to purchase it? B
UNLOCK MORE:
If I had asked people what they wanted, they would have said faster horses.
Henry Ford, Founder, Ford Motor Company
Brand, choice and sustainability
There are so many complex, dynamic and frankly, impossibly unpredictable factors that drive consumer behaviour.
What’s their motivation to buy (or not)? What captures their attention (or doesn’t)? What’s their connection to a brand? What time considerations are at play? And of course, what’s their financial situation (and how are you playing into it)?
It comes as no surprise, as we’re mulling over which companies to buy from, our deliberations are becoming increasingly driven by ethical standards.
A product, or even a brand’s social and environmental makeup, is proving equally as divisive as its attributes.
So, businesses need to truly understand their customers’ changing values. And they must use that understanding to communicate the societal and environmental credentials of their brand and offering.
But broad brush claims about ‘being green’ won’t cut it either. People – and now the Competition and Markets Authority (CMA)* - need to see specifics on what, and how, firms are protecting the planet. They want greater environmental commitments from the companies they do business with.
And they want guidance on how they too can play a part.
So if you fall short, quite simply, you’ll fall off your consumers’ radars and into the regulatory spotlightand they’ll come down on you with heavy fines.
There’s a market for achieving net zero and for carbon offsetting – and it’s growing
So, you’re telling me that ESG is simply a PR exercise?
There’s a market for achieving net zero and for carbon offsetting – and it’s growing.
Carbon offsetting is a scheme which allows individuals and companies to invest in environmental projects around the world to balance out their own carbon footprints. This means that instead of reducing activity directly resulting in CO2 production, activities which result in reducing CO2 are carried out, effectively cancelling out the impact of the first.
When completed alongside any work that is being done to directly reduce carbon emissions, these projects are mechanisms by which net zero transitions can be achieved. It’s a credit instrument, where the buyer promises to reduce emissions via such offsetting projects (without directly investing in any projects at that time).
You’ve heard of carbon credits, but imagine the credit you’d receive from the consumer too.
It sounds like a no brainer, right? If the end result is positively impacting the planet, then yes. But it’s not without its limitations.
One major counter-argument against carbon offsetting is that it distracts people from the real issue at hand. A quick win to save face as opposed to the very real change that’s required.
From this perspective, offsetting could be a route you take to avoid completely reassessing your operating models in line with these sustainability targets.
Greenpeace argues that though these offsetting projects are not inherently bad initiatives to be investing in, they shouldn’t be used as ‘PR plans’ that prevent companies from taking meaningful action on their carbon emissions. So what can we do? The answer is simple. Be the change you want to see.
As businesses, let’s ‘put our money where our mouth’ is by channelling our spending power into sustainably sourced products.
Let’s reassess the way we do business in order to introduce and reinforce sustainable practices.
But let’s also listen to the greatest driver of change – the consumer.
As consumers, when we assess brands we evaluate the sustainability of their products, services, communications and behaviour. We do this by subconsciously asking ourselves some important questions: What’s my motivation?
Do I believe that the company genuinely cares? Are its values consistent with mine? Are its environmental efforts genuine? And does it take a stand and try to influence others?
In understanding their motivation, you can actually look to influence and enable them to make better choices
which in turn can significantly reduce your carbon footprint.
For example, Unilever estimates that 70% of its emissions depend on which of its products customers choose, and how they use and dispose of them.
What captures and maintains my attention?
Is the brand aligned with my interests – not just my beliefs? Do I feel informed and reassured by them? Does it clearly signal its intent through ‘green’ innovation and improvements?
Customers want sustainable products. They want to see that you either sell or create sustainable products or that you are yourself, a sustainable brand. Just look at the Fairtrade Foundation, the body behind the Fairtrade logo - against the backdrop of a cost-of-living crisis that’s seen people look to save money and reduce their spending, it achieved £13m in income from the UK in 2023 compared to the £12.8m it earned in 2022.
Businesses can apply for a licence to use the logo on approved products for a fee, so as the businesses sales increase, the fees to the foundation increase.
Being visibly active in your efforts matters, whether that’s using a logo like this or in how you brand your ESG actions – the consumers want to know.
Of people rely on social media for information on sustainability 75%
Are more likely to take up behaviours to help save the planet after watching social media content about sustainability, versus the 20% who would, having watched government campaigns
83%
Think TikTok and Instagram are good places to get advice about how to live sustainably 78%
What’s my connection to this brand?
Is the brand philanthropic? Does it support the groups and causes I believe in? Is the organisation concerned about the things that worry me?
We live in an age of environmental activism and social impact, where actions - and inaction - are visible more than ever, and gather momentum. You can see it in the very public acts of protest at major sporting events, which become overnight trends on social media.
Social media, is your biggest ally and your biggest threat from a brand perspective.
A study by Unilever revealed that 75% of people are more likely to take up sustainable behaviours after watching social media content about sustainability. 78% are also relying more and more on social media as their chief source of information around sustainability – more than documentaries, news articles and even government campaigns.
We can’t control trends, but what we can control is how we appeal and communicate to our consumers through the channels that matter to them.
How long will this take to make a difference?
What is my sense of urgency? How pressing is the need to make a difference? How long will this take to improve the sustainability of my behaviour?
Results can be instant in many ways, but as we know, a return on investment can be predicted but not guaranteed.
And when it comes to a return on any climate investments, time isn’t exactly on our side.
Consumers understand that addressing the climate crisis isn’t going to happen overnight, that a culmination of small changes will lead to significant improvements, and it shows in the way they seek out their products – backed by regulatory rules coming into force.
Just this year, running almost in tandem with the CMA’s new rules, the EU has also established rules designed to ‘empower consumers for the green transition’* through better and more harmonised information on a product’s durability and reparability.
So time, it seems, really is running out for you to get on board with the sustainable preferences of your consumers.
Can I afford this?
How willing am I to pay more for sustainable products? How is the increased cost of living affecting my disposable income and therefore, my ability to favour sustainable options?
As businesses, we know that many people are still reaching for sustainable products – even in a cost-of-living crisis. So, how well do your ESG efforts stack up? Ensuring your sustainability commitments are robust, will put your products firmly on the consumers’ radar. B
Author: Lisa Navarro, Head of Regulatory Law, KPMG Law in the UK
Lisa is the Head of KPMG Law’s Regulatory Law team, supporting clients with all aspects of competition law, merger control and National Security clearances as well as Sectoral regulation and price controls.
She is also the UK Legal lead for ESG and Sustainability and supports clients in navigating the regulatory frameworks that drive sustainability action and compliance across the Environmental, Social and Governance aspects. This includes working closely with KPMG’s ESG advisory teams in the UK and globally to support on reporting and supply chain issues.
How do you solve a problem like greenwashing?
Could technology be the key?
Author: Lisa Navarro, Head of Regulatory Law, KPMG Law in the UK
Whether it’s multi-million dollar fines, public criticism from governing bodies, or long and intense investigations - greenwashing has fast become a major issue.
We’ve seen major cases over recent years, with DWS being raided by the German police; Tesco being criticised by the Advertising Standards Authority for its claims in relation to its plant-based products; BNY Mellon fined $1.5m by the US SEC; and Goldman Sachs, whose asset management division was hit with an intense investigation by the US SEC.
As the ESG agenda continues to take precedence, greenwashing will only grow with it. Look at the Competition and Markets Authority (CMA), who in recent years has undertaken a major investigation into greenwashing within the UK’s fashion industry as a
follow up to its “Green Claims Code”. Greenwashing is something you and your business need to take very seriously.
What is greenwashing?
Greenwashing is when a business makes false or misleading claims about their ESG credentials. It can be done through their marketing campaigns, their investment strategy, or as part of their corporate reporting.
Greenwashing can occur both intentionally and inadvertently – with the latter likely to happen more and more as ESG reporting requirements are tightened around the world.
What are the legal risks involved?
Greenwashing can expose a business to many legal and regulatory risks.
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The consequences depend on how the greenwashing takes place. For example, if the false or misleading statements are made in a company’s statutory reporting, prospectus or announcements, expect fines for the business and its directors. There’s also “mass actions” litigation, where a large number of affected persons can group together to sue an organisation.
Of course, greenwashing can also expose businesses to commercial risks, in addition to legal fines and litigation.
Consumers are increasingly aware, and scrutinous, of what you do (and don’t do) around ESG.
They vote with their feet, so greenwashing will lead to damage to your reputation, goodwill, and may result in you losing those customers
for good. It’s not just consumers either, lenders and investors are turning the screw in light of greenwashing. Some are going as far as to avoid funding businesses with poor ESG credentials or regulatory issues entirely.
And of course, you can’t forget your people. The modern employee expects more from their organisation.
If you’re seen to be greenwashing, you’re going to find it much harder to recruit and and retain quality staff.
The list goes on; but there are a few others you need to be aware of like increased insurance costs following claims against the business, and for listed businesses, a decrease in the share price.
Perhaps most alarmingly in the journey towards net-zero, you’ll
face an inability to sell offsets in the carbon markets, due to insufficient supporting data.
Where does technology come into the picture?
The best way to mitigate the risks is to ensure that, whatever you are saying about the environmental, social, and governance credentials of your business, you make sure it’s accurate and not misleading.
Ensuring that your ESG messaging is authentic will help you maximise the tangible benefits of being an ESGfriendly business. You’ll see better customer loyalty, increased revenues, more engaged staff, and greater access to capital.
So, how can you do this?
There is a growing range of technology solutions, focused on helping businesses verify their ESG metrics.
These include:
• Innovative proprietary data sources (e.g. satellite imaging and AI to assess the actual impact of carbon offsetting schemes).
• Digital due diligence tools to help identify areas where you can work with suppliers to reduce emissions and improve energy efficiency.
• AI / big-data analytics tools such as natural language processing (NLP) that can help scan and consolidate large volumes of ESG data, carry out comparisons across a large number of businesses, identify risks and opportunities, and conduct real-time monitoring.
• ESG-focused data analytics tools, to extract carbon emissions, and other data from your business operations.
Technology will help you understand your ESG standing and firmly
bridge the gap between climate risk and opportunity analysis, strategic response development, disclosures, and financial impact reporting. A positive environmental and social impact, combined with good governance, are the key ingredients for a thriving business.
There are no short-cuts here though, and your ESG credentials face great scrutiny from internal and external stakeholders. B
As the ESG agenda continues to dominate, greenwashing will only grow with it.
Lisa Navarro, Head of Regulatory Law, KPMG Law in the UK
Author: Chris Stott, Manchester Office Senior Partner, KPMG in the UK
Chris is the Office Senior Partner for KPMG Manchester, our largest office outside London with over 1,500 colleagues. He is passionate about market focus, teamwork and personal development for all.
He leads KPMG’s Deal Advisory business in the North of England, a 300 strong team which focuses on helping businesses deliver on their strategic agenda’s including acquisitions, disposals, joint ventures, management buyouts, fund raising, insolvencies, incremental borrowing rates, cash and cost optimisation.
Chris also leads KPMG’s Agri-food and Drink Deals business in the UK which incorporates businesses throughout the food supply chain from farm to fork.
No ESG? No capital then.
It is difficult to overstate the rapid acceleration of ESG up the board agenda among businesses, financial institutions and investors over recent years. It’s almost trite and clichéd by now.
Author: Chris Stott, Manchester Office Senior Partner, KPMG in the UK
But sometimes, we all need reminding in order to remember why it is we’re doing what we’re doing in addressing the ESG agenda. And it is this acceleration and razor-sharp focus on ESG from both the investors who provide the capital and the businesses who use that capital, that has driven the growth in ESG financing activity.
ESG financing: an option for all
There’s now a substantial list of debt deals involving banks, credit funds and high-yield bonds which are described as green or sustainable financing, covering the full range of sectors and both large and midmarket businesses.
Getting it wrong is a costly affair from both a financial, and reputational perspective.
Chris Stott, KPMG in the UK
Many of these are loans raised for general corporate purposes or mergers and acquisitions (M&A) but include commitments by borrowers to hit one or more ESG-linked performance targets during the life of the facilities. Others involve the entire proceeds of the transaction being committed to ESG purposes or projects. There’s also, at the time of writing, over 200 grants and incentives in the UK that are targeted at ESG and sustainability projects.
Tax relief, grants and incentives are a catalyst for your ESG projects, they help derisk them and can support new and wider collaboration across both sectors and supply chains. Given the number of them available, combined with the funding options, it’s important to understand what’s right for your ESG journey and most importantly, what isn’t. Getting it wrong is a costly affair from both a financial and reputational perspective.
Raising the ESG bar: the greenwashing challenge.
The pace of growth in this space, and the sheer breadth of what could conceivably be caught under the banner of Environmental, Social or Governance, can make it difficult for borrowers to cut through the noise.
You need to define a clear ESG strategy, underpinned by a set of sustainability performance targets or investment plans which are appropriate for the business and also acceptable to lenders.
Organisations such as the European Leverage Finance Association and the Loan Market Association have each developed detailed guidance for borrowers and lenders.
They aim to create a type of standardised approach to defining sustainability strategies and performance targets, as well as requiring those targets to stretch beyond ‘business as usual’, be
relevant and material to the business, while being measurable and externally assured.
Achieving this rising ESG bar is easier said than done. Prioritisation and materiality assessments are key for businesses to work out where they need to focus to maximise value and mitigate risk.
While the market may talk about E, S and G, the E – and climate risk in particular – often takes the spotlight.
With the UK Government committing to net zero by 2050, all businesses are likely to feel pressure to transition to a greener future and adopt decarbonisation strategies.
And beyond the E, we believe that the S and G will start to take more prominence in coming years, not just from national government, as local businesses, lenders and public bodies fully recognise the power of sensible ESG principles.
Take Greater Manchester as an example. It has set an ambitious target of achieving net carbon neutrality by 2038 and it can only achieve it through the combined efforts of the public, private and education sectors to develop low carbon solutions for: smart energy, retrofitting, transport, green innovation, natural environment, aviation, green finance, and green skills/jobs.
ESG is here to stay, and, from a financing perspective, borrowers need to be alive to the reality that ESG is becoming ever more deeply embedded into credit processes.
So, it’s important for borrowers to have the mindset that all debt financing should be ESG-linked unless there is a compelling reason otherwise.
We’re already seeing some lenders refuse to participate in financing deals where they believe the borrowers’ thinking and planning on ESG isn’t as developed as it should be. Lenders are not saying that every business needs to have a fully developed sustainability strategy at this stage, with targets and reporting frameworks in place. But
they no longer see a comprehensive assessment of the credit quality of a business as possible without understanding what the business is, or isn’t, doing on ESG.
In embracing ESG and driving positive action, you unlock a powerful governance tool to galvanise good behaviour and good business practices.
It becomes a part of your brand and in doing so, it opens you up to different set of conversations with partners, influencers, and consumers. You create a network of voices that have the common power to influence real meaningful change. You become not just a follower to the cause, but the driving force.
Convincing lenders that ESG is a priority board level issue for your business is now essentially a minimum requirement for accessing capital.
The ESG bar remains high and continues to rise and understanding the maturity of your ESG strategy will place you in a good position; not only to set your ESG goals and identify the key areas where you can make the biggest impact, but to also understand how ESG runs through your wider strategic ambitions.
Head over to Beyond to find out the three ways your ESG strategy can drive attractive deal outcomes and wider business value. B
No ESG, no capital, is no longer purely a directional trend: it is already happening.
Chris Stott, KPMG in the UK
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Do you really need to be sold on the importance of cyber security? Meet the author:
Author:
Aga Colcomb,
Head of Security, Culture and People Risk, KPMG
in the UK
Aga started her career in Risk Management delivering risk framework, compliance and global standards such as ISO 27001, developing strong stakeholder & project management skills along the way.
In recent years she has been working in the security awareness field, learning how to communicate the importance of security in a world full of distractions through creative and engaging campaigns. Helping others to be safe in the current cyber threat landscape and proving organisational security as a businesses’ most valuable asset.
Do you really need to be sold on the importance of cyber security?
Author: Aga Colcomb, Head of Security, Culture and People Risk, KPMG in the UK
The last few years have been quite –cyber-heavy – in a way, haven’t they?
Whether it’s the wider shift towards flexible working opening up new vulnerabilities, or the rapid development of technologies used by both the good and bad actors, cyber security is something that everyone has had to become more aware of – if not an expert in.
And yet, for many cyber professionals there remains a constant challenge: indifference.
Perhaps it’s legacy thinkingtechnology issues and cyber concerns should be placed firmly on the desk of the cyber and IT professional.
And there may very well have been a time where that was the best course of action. But those days are gone. Cyber security is a problem we all must face.
So why is selling cyber still so difficult?
For me, as a cyber professional, it can be a little disheartening to have to remind people that – yes this is important. In many ways, each time I present or indeed pick up any ad-hoc cyber conversations, it feels like I’m justifying why I have a job.
The biggest risks we face, both as individuals and as companies, don’t exist within the physical realm of equipment theft or property damage; they exist within the virtual world.
If your purse or wallet gets stolen, it’s easy enough to block all of your bank cards through a quick phone call or the click of a button on your phone.
But what if your identity gets stolen and a cyber criminal uses all of your details to take out a loan or start a new credit card (and block you from your own accounts)? Suddenly the game changes and it’s much harder to rectify.
Why do we even need people like me to remind others of the importance of staying safe online? Because unfortunately, many people only take action after the effect - at which point it’s too late.
So what can you do to keep your colleagues safe and be more safety conscious online?
Give them the why
Don’t just tell them what to do. Explain why it is so important to do it. It may be obvious to you in a cyber role, but not everybody has the same level of knowledge of the intricate and complex cyber risk landscape.
Use real examples
Cyber security, likely due to a result of TV and movies, is plagued by a sense of myth. If we don’t know how it can impact real people it will always sound like something that happens in the movies - or to someone else. Show them what happened, and how it can and will impact them.
Soften the language
The key to effective communication, particularly around this issue, is choice. Understand how your people want to be communicated with, and where, and factor this into your communication strategy.
Behavioural change doesn’t always come through force, especially if it’s something that people don’t inherently feel is their responsibility.
The cyber threat landscape continues to change at speeds that even the best cyber professionals struggle to keep up with. It is our collective responsibility to understand how important cyber security is to an organisation and how each and every one of us plays our part in both the good, and the bad.
If we get it right, then the response becomes less “So what?” and more “So, what are we doing about it?” B
Author: Martin Tyley, Head of Cyber Security, KPMG in the UK
Martin is passionate about changing the way we talk about Cyber Security. Working across multiple industries with a large focus on Private Equity, Martin leads our Cyber Risk Insights (CRI) capability that sets out clear return on investment criteria and states cyber risk in business terms. Starting in the UK and in 2023 building out globally Martin, and the CRI team, are replacing fear, uncertainty and doubt with insights that support business decision making and real outcomes for clients.
Ready to report on cyber risk?
Author: Martin Tyley, Head of Cyber Security, KPMG in the UK
Cyber security threats aren’t going away.
In fact, as we evolve our use of technology, they’ll continue to grow. The prioritisation of cyber security is crucial for businesses of all sizes. But, with cyber threat so sophisticated now, it’s difficult to know where to start.
One way to fortify your cyber security is by using cyber risk quantification (CRQ). This methodology provides a quantitative view of your company’s cyber risk exposure, helping you to express risk quantitatively, prioritise and optimise cyber security investments, and demonstrate a costbenefit analysis.
There are several CRQ tools on the market that will help you assess, measure, and mitigate risks effectively. While some offer more benefits than others, these are the features to look out for in any solution:
Accuracy and methodology: Look for tools grounded in transparent risk assessment processes and robust methodologies such as FAIR (Factor Analysis of Information Risk).
Customisation and flexibility: Choose tools offering customisation options to align with your organisation’s unique risk profile and objectives, allowing adjustments for risk parameters, scenarios, and inputs.
Integration and compatibility: Opt for a solution that seamlessly integrates with existing cybersecurity infrastructure and tools.
Compatibility with common risk management frameworks, security technologies, and data sources is crucial.
User interface and usability: Look for intuitive interfaces, interactive dashboards, customisable reports, and easy-to-understand visualisations.
Scalability and performance: Ensure your tool can scale alongside your organisation, accommodating increasing data volumes, complexity, and analytical requirements.
Comprehensive risk coverage: Look for coverage across various risk categories including financial, operational, reputational, and compliance risks. A holistic view of the cyber risk landscape enables informed decision-making and prioritisation of mitigation efforts.
Support and training: Choose vendors offering comprehensive support services including training, implementation assistance, and ongoing technical support.
Cost and ROI: Evaluate the total cost of ownership, including licensing fees, implementation costs, and ongoing maintenance expenses in relation to the tool’s value and benefits.
KPMG Cyber Risk Insights
KPMG Cyber Risk Insights is a licensable SaaS risk quantification product, recognised by industry analysts as being rated 5 out of 5 for user experience. With Cyber Risk Insights, you can:
• Spend less time conducting cyber security assessments and more time taking meaningful action
• Start proving the value of your security programme and investment decisions
• Align your cyber risk reduction strategy to business outcomes
• Truly adopt a cyber resilient mindset
To find out more, scan the QR code and book your free demo today! B
Selecting the right cyber risk quantification tool is crucial for effective cyber risk management.
Author: Anya Zhuravkina, Founder, Winning Language
Anya’s the founder of Winning Language, where she helps businesses large and small communicate in a more persuasive way to build trust and win work.
Previously she was a Language Director at KPMG – helping the firm win multiple £5m+ opportunities and training our people to use language more effectively in sales. Go to www. winninglanguage.co.uk to read more about her approach or follow her on LinkedIn.
Is it brave to be really real?
Author: Anya Zhuravkina, Founder of Winning Language
Social media, and the way in which we put ourselves out into the world –both as individuals and as companies – is a fascinating thing. When you look back over the last decade, the very ways in which we engage with and are influenced by celebrities, brands and even senior leaders within those brands continues to evolve in ways once thought unimaginable.
And that makes it both difficult – and scary – to try and grasp. Getting it right, becoming a viral hit, striking that perfect chord with your target audience is great. Getting it wrong, however, is a terrifying thought.
But you can’t ignore it outright through fear of making a mistake. For many businesses and sectors, trying to strike the perfect balancing act is one they find themselves unable to move from. But they do have to move, as the consumers of information today value authenticity and purpose.
Authenticity and language go hand-in-hand
Authenticity is built on transparent communication and open dialogue. So what better way to have that with the online consumer than through social media? Social media and wider marketing communications all boil down to language – and the language we use carries weight.
Our language impacts the way that those we work with, and the audiences we’re targeting, feel. It affects both our personal and professional brands. It’s one of the most powerful factors people consider when they decide whether they want to work with us or buy from us – or not.
Through our companies, our sectors and our specialisms, we’re schooled to use language in a particular way - we’re institutionalised. Saying “utilise” instead of “use” for example. But the world is changing. Language is evolving. And we, as individuals and as businesses, need to evolve with it.
Is there still a demand for antiquated ‘business language’? And how on earth do we evolve along with that broader evolution of language across different cultures, generations and – particularly – in the digital era? How much can our brand reputation be influenced by our social media ‘voice’?
These are key questions in which the answers, ultimately, never stay still. But one common line between them all is that notion of authenticity.
Authenticity comes from a dichotomy of two things – how deliberate we are in our language and how tolerant we are when it comes to people experimenting, learning and making mistakes.
Mistakes in our language will happen, especially when speaking across generations and cultures.
Are we expected to be perfectly seamless with our language? In some cases, yes we are. But should we be? That’s up for debate.
To try is better than to stay silent.
The key thing to remember is, it is absolutely ok to make mistakes, as long as there’s an authenticity in our desire to learn from them. We shouldn’t allow fear of getting it wrong rid us of our curiosity and avoid putting our voices out there. Clearly, we do have to be careful and think before we speak – but it’s important that we understand that it’s fine to ask if we are uncertain about our words.
Over the years, social media has become so binary - with an endless number of people shouting from different corners of a virtual room. No wonder many are often scared to say anything – the risk seems too great.
But saying nothing at all doesn’t further a debate. It doesn’t build your brand and your voice or allow us to learn and evolve. If you genuinely want to learn and you’re happy to question your own linguistic comfort zone, that’s the only way you’ll move forwards.
Otherwise, everyone will stay entrenched in their own posit. B
Language affects both our personal and professional brands and is one of the more powerful factors people consider when they decide whether they want to work with us or buy from us - or
whether they don’t.
Anya Zhuravkina, Founder of Winning Language
Author: Caroline Laffey, People Services Partner, KPMG in the UK
Caroline is a partner in our national Employer Reward Services team. She has around 30 years’ experience supporting clients’ HR, finance and payroll teams to deliver employer compliance and reward projects including representation during HMRC reviews into employment status, PAYE, National Insurance, Construction Industry Scheme and National Minimum Wage.
Caroline also has a great deal of experience in delivering technology solutions to improve employee engagement through the delivery of an employee value proposition hub, flexible benefits and total reward statements. Helping to reduce the administrative burden and improve compliance through the implementation of right to work, P11D and IR35 technology solutions.
Named and shamed 11
Author: Caroline Laffey, People Services Partner, KPMG in the UK
It can be easy to get national minimum wage (NMW) wrong. In many cases, underpayments are not deliberate.
Even so, the consequences of non-compliance can be extremely damaging to your brand – both reputationally and financially.
Falling foul of the rules will result in a default penalty of 200% of the pay arrears, and it could result in you earning a place on the Department for Business and Trade’s named and shamed list.
Now, that’s a league table you don’t want to chart in.
In the recently published list, more than 500 employers were named, ranging from well-known large businesses to private individuals.
Key sectors include employment agencies, retail, manufacturing, hospitality, freight, and transport, with employers collectively ordered to repay workers nearly £16 million, plus the additional financial penalty.
As an employer, it’s crucial that you get one step ahead by implementing measures to minimise the risk of paying less than the NMW.
NMW enforcement
In addition to regularly publishing a list of non-compliant employers, HMRC’s enforcement powers include recovery of underpayments, civil penalties and criminal prosecution. The potential civil penalty could be up to 200% of the total underpayment for all impacted workers, or up to £20,000 per impacted worker. Criminal prosecution is reserved for the most serious cases, for example where employers persistently breach NMW requirements or fail to co-operate with HMRC during their investigation.
Clear records are crucial here. From 6 April 2025, HMRC will require more granular detail on the hours employees work to be submitted via PAYE Real Time Information.
Compliant employers could find that the likelihood of being selected for a risk based NMW review increases if they fail to report accurate data.
So, what else can you do to ensure compliance? Head on over to Beyond to discover the three most common pitfalls to avoid. B
As an employer, it’s crucial that you get one step ahead by implementing measures to minimise the risk of paying less than the NMW.
Natalie Shingler, Payroll Consultant, KPMG in the UK
Author: Damien Margetson, Director in Forensic, KPMG in the UK
Damien is a Director in KPMG’s Forensic team and has over 20 years in the accounting profession. He helps clients to maximise the value they get from their data assets by extracting value from financial and operational information to aid better business decision making and minimising risk. Prior to this, Damien spent 12 years leading forensic fraud investigations both in the UK and overseas. He led many assignments involving misstatement and manipulation of accounting records and provided advice to clients on fraud risk management strategies and on the use of data analytic tools in order to reduce the threat of fraud.
It’s time we took fraud seriously
Author: Damien Margetson, Director in Forensic, KPMG in the UK
Where does fraud sit on your priority list as a business?
We talk of cyber security and the evolving threat landscape of phishing and ransomware. We talk of the risks associated with the rapid development and implementation of Artificial Intelligence (AI) but how often do you include fraud within that conversation?
It should sit squarely in the middle because if you don’t take it seriously, you’ll find your business in deep trouble.
There’s a real concern all across the UK that fraud is now at unprecedented levels – with fraud accounting for over 40% of crime.*
In response, we have seen the government issue its Fraud Strategy and new legislation, including the “failure to prevent fraud” offence introduced in the Economic Crime and Corporate Transparency Act 2023.
But legislation and government-led initiatives are only half the battle, it’s your actions as a business that make the real difference.
So, are you more at risk of fraud?
The headline isn’t pretty - the total volume of alleged fraud cases of over £100k reaching UK Crown Courts rose throughout 2023 and the total value hit nearly £1bn.
In our 2023 Fraud Barometer, which records alleged fraud cases with a value of £100k and above, we saw that the total volume of fraud cases heard in UK Crown Courts in 2023
was 226 at a combined value of £992.9m.
At £592.7m in value, the Government was hit the hardest by fraud, followed by commercial business (£164.6m) and investors (£121.7m).
The cost-of-living crisis and high inflation are two likely causes of a rise in fraud. With an increasing number of employees more vulnerable and at risk of falling foul of fraud, as well as outright stealing from their employers.
In 2023, employees and management were involved in nearly half of all cases (43 and 58 cases, respectively) to the combined value of £221.3m. The steep decline in job hiring activity may also create pressure on individuals that could lead to increased levels of insider fraud.
The fact of the matter is that this is only the tip of the iceberg when it comes to fraud cases and so businesses should ensure they have appropriate safeguards in place to protect against any potentially fraudulent activity from the inside.
The sad reality is that these are incidents that are being reported –it’s highly likely that there are plenty of others who’ve also been targets or victims of a similar attack and it’s only a matter of time before we hear those.
So, what do you need to be aware of?
The recently introduced Failure to Prevent Fraud legislation places a requirement on all businesses to provide their employees with fraud awareness training.
Training alone will not prevent fraud entirely, but if you’re not providing this regularly, you leave your business open to the threat of fraud –from inside and out.
We can help you with your fraud risk management strategies, helping you to reduce the risk of being the next victim.
Our quick and free fraud assessment helps you measure how robust your fraud risk management strategy is and understand any areas of weakness.
I speak to a lot of businesses about the severity of these types of attack and it’s difficult to convey sometimes just how much time and effort is spent on cure, rather than prevention.
I can’t promise to stop this from happening, but a simple conversation can reduce the risk.
If you have any concerns about the fraud landscape, please let us know. The more we can talk and explore the threats, the more we can work together and better prepare our businesses. B
Identify your weaknesses Fraud Risk Assessment
From setting clear strategic directions to implementing effective monitoring techniques, we’ll work to ensure that your business is equipped to combat fraud at every level.
What
taught me about the power of my brand
Meet the author:
Taylor Swift
Author: Dahlia Stroud,
Host, Stressed But Well Dressed Podcast
Through her Stressed But Well Dressed Podcast, Dahlia explores an expansive range of topics including diversity, equity and belonging, sustainability and the circular economy, social mobility, psychology, wellbeing, human behaviour, business development and consumption, all with the common thread of personal identity. Dahlia’s experience extends across a number of leadership roles in retailers and commercial roles within the food supply base.
The Stressed But Well Dressed Podcast is released weekly and can be found on Instagram at: stressedbutwelldressed_podcast and on X at sbwdpodcast and is available on Spotify, Apple and Amazon.
What Taylor Swift taught me about the power of my brand
Author:
Dahlia Stroud, Host, Stressed But Well Dressed Podcast
I didn’t expect that the most inspirational moment of 2024 for me would involve Anfield Stadium, a woman in a sparkly pink leotard and 60,000 screaming tweenagers.
Perhaps I had underestimated the power of one of the most iconic singers of the era, but a night watching Taylor Swift was totally unforgettable.
And this got me thinking; just how exactly has Taylor Swift created such a strong personal brand and how has she encouraged a following of ‘Swifties’ - the self-proclaimed Taylor groupies who are just as interested in Taylor’s life as they are her music – to almost redefine the concept of being a fan?
Whether we are thinking about our personal lives or our professional
ones, there’s a lot we can learn from Taylor Swift about how we develop and nurture our own brands.
Connection through storytelling:
Taylor’s songs are autobiographical and through her music she shares her life with her fans. Swifties can pinpoint the lyrics that relate to specific times in Taylor’s life, making them feel like they are a part of her world.
As professor, author and fellow podcaster Brené Brown says ‘For connection to happen we need to allow ourselves to be seen’ and Taylor does just that. This level of intense sharing enables Taylor’s fans to feel her vulnerability and connect with her on a deeper level.
Brand power and presence: When
Taylor’s in town, everybody knows about it. In fact, according to Barclay’s Bank, Era’s Tour related spending is set to add almost £1bn to the UK economy this year in what they call ‘Swiftonomics’. Travel, accommodation, food and the beloved merchandise will all play their part in boosting British spending. We can expect economic growth to be delivered by (you guessed it) sequins, pink fluffy cowboy hats and beaded friendship bracelets which are essential Eras Tour must-haves.
A more is more offer:
Forget less is more, with Taylor the mindset is ‘more is more’ creating as much value as possible for fans.
Her Eras Tour is a 3.5 hour immersive experience where she
Your brand is what people say about you when you are not in the room.
Dhalia Stroud, Host, Stressed But Well Dressed Podcast
does everything from sing on stage alone playing the guitar and piano and strut on a glittering podium with a 15 strong band of back up dancers to floating through a woodland in her Folklore set and diving into the stage as it becomes a visual ocean (seriously).
Taylor’s tour is expensive, but she creates value for her audience by not stopping once during her set. She reduces pauses in her music through on-stage outfit changes and keeps going - with 46 songs in her set, you can’t believe it when she starts a new one. It is undeniable that her concert offers value for money for the Swifties who want to get as much Taylor time as possible – and are willing to pay for it.
Service with a smile:
From the first coy and unassuming ‘Hi, I am Taylor’ as she walks on stage right through the concert, Taylor delivers her act with a smile. She engages with the audience throughout, recounting stories about the city she is in (she filmed a music video in Liverpool) and breaking from singing several times to address her captivated
audience. When she announced that the concert had broken attendance records at Anfield, she chose her words wisely, thanking the crowd for their support and showing them their collective power as a group of fans.
Through smiles, demonstrating gratitude and keeping it real, Taylor manages to create a sense of likability that helps to build trust and strengthen her brand. No wonder the Swifties adore her.
So, what does it all mean to you? Your brand is what people say about you when you are not in the room. It’s what you’re known for. It’s your identity and your presence, and as I said right at the beginning of the article, BRAND Taylor created my most inspirational moment of 2024.
Using her very own lyrics, it doesn’t feel like Taylor Swift is ‘Going out of style’ any time soon and if we all took a leaf out of her book, neither will we. B
The Beyond Bibliography
Here’s our top five great books to get you started on your personal branding journey. Head back to Beyond and share your recommendations in the Beyond Lounge.
Key Person of Influence
Daniel Priestley
Daniel Priestley shows you that there is a strategy for fast-tracking your way to the inner circle of the industry you love.
How to Own the Room
Viv Groskop
A lesson in getting over the anxiety of public speaking. Geared towards women but a great 101 on how to deliver at your best.
One Million Followers
Brendan Kane
Brendan uses his ‘social hacker’ experience to teach how to manipulate the algorithms so your followers see your content through all the noise.
Building a Story Brand
Donald Miller
Donald explains the ‘seven universal elements of powerful stories’ to help business leaders connect with customers and grow their businesses.
Influencer
Brittany Hennessey
Brittany gives you a bird’s eye view on how to do it – through her own experience. She guides you through her wins and failures in this honest how to.
So where to begin?
Fortunately, there are a number of well-laid strategies you can follow to build and maintain your personal brand responsibly.
1.
Thought leadership through content creation
Establishing yourself as a thought leader in your field enhances your personal reputation and credibility, while boosting your company’s visibility.
Start by regularly publishing articles, blog posts, or videos on relevant industry topics, participate in podcasts or webinars, and make sure to mention your company and link back to its resources where appropriate.
2.
Active engagement on social media
Building a strong social media presence will expand your professional network and influence. At the same, your organisation benefits from the increased reach and engagement driven by your posts.
Where appropriate, make sure you’re sharing industry insights, company achievements, and relevant news on platforms like LinkedIn, X, and Threads. Engage with followers and industry leaders through comments and discussions.
3.
Internal knowledge sharing and mentorship
Remember, you can be an influencer within your organisation. Sharing knowledge and mentoring your colleagues will boost your leadership skills and reputation within the company, while contributing to a culture of learning and development, improving overall team performance and job satisfaction.
Put this in practise by leading internal training sessions, workshops, or lunch-and-learn events. Mentor junior employees and encourage crossdepartmental knowledge sharing.
Five key principles for responsible posting:
1. Pause before posting: Use your judgement. If it isn’t something you’d say in the office, don’t say it online
2. Respect others: Tensions can rise fast on social media. Whatever you do, remain respectful, avoid getting into arguments, and don’t post personal remarks about another person.
3. Speak for yourself: Your ideas and opinions are worth sharing, but they may differ from your organisation. Make it clear that you’re not speaking for the business or giving advice on its behalf.
4. Share with care: Avoid sharing anything inflammatory; only share content that you’ve read or watched in full; share content from people you trust; and be sure to credit the content owner.
5. Look after your data: Keep your passwords personal; connect with people you know; click only on content you trust B
A balancing act: The needs of many or the needs of a few?
Author: Nick Pheasey,
Partner
and
Head of the KPMG Family Office and Private Client team, KPMG in the UK
Nick is a Partner and Head of the KPMG Family Office and Private Client team in the UK. He joined KPMG in 2002 and has specialised in private client tax matters throughout his career with over 20 years’ experience advising in this area. Nick is based in the North of England and his clients include entrepreneurs, family offices and private families. He’s worked with many private business owners as they navigate complex transactions and the transition of wealth through the family.
A balancing act: The needs of many or the needs of a few?
Author:
Author: Nick Pheasey, Partner and Head of the KPMG Family Office and Private Client team, KPMG in the UK
In any business, leadership teams are the driving force for deciding how the business chooses to operate.
They determine what good - and bad - looks like against the backdrop of the company purpose and raison d’etre.
Striking a balance between what’s good for the business and what’s good for leadership (based on your biases and emotional state) is a critical balancing act that’s often forgotten about in the quest for success.
One big criticism any leadership team, or executive board, could face is letting emotional and personal bias potentially overshadow meritocracy in decision-making.
This isn’t the way for many, but it’s always a risk when running a business.
If appointing new people into leadership and management roles is based on merit, putting those personal influences and biases first doesn’t necessarily contradict the importance of operating a professionally managed business.
But it isn’t as black and white as that.
Take a family led business for example.
Given the nature of the leadership model, and the close personal relationships involved, this is perhaps the most extreme example of that
balancing act in practice.
The family must ensure that any and all decisions made are done so with the goal of doing what’s right for the business - and right from themselves in terms of the economic and non-economic goals of the controlling owners.
Yet, the evolution of family led business demonstrates a shifting landscape. They’re moving from family-owned and operated to family-owned but professionally managed entities - mostly due to the ever-growing need for specialised skills and external perspectives in an increasingly competitive, and uncertain, market.
Two pivotal factors underpin this transition.
Firstly, the ownership and management structure of the business must be fit for purpose; to be right for both the leadership and owners (or the family) and the company at specific times in the business and leadership lifecycle.
The second factor is the impact of changing demographics.
Our businesses are filled with multiple generations of workers coexisting, bringing their own outlook and aspirations.
For GenX and Millennials in particular, these aspirations don’t always include an interest
in contributing to the business outside of their day-to-day work responsibilities. Some just want to work to live, others want to work to contribute and to be a part of something bigger – and some leadership teams, understandably, struggle to grasp that.
And it’s these considerations, and indeed challenges, that form the balancing act of the modern business.
Striving for reputational excellence
Reputation management is also a critical component for any business that has ambitions of enduring success.
The power of reputation cannot be overstated; it serves as a currency in the marketplace, influencing customer loyalty, investor confidence, and employee morale.
Many businesses, particularly those led by leaders with a penchant for legacy and continuity, are acutely aware of the stakes involved in managing their reputation effectively.
A positive reputation can insulate the business from adverse events and enhance its resilience in times of crisis.
But a tarnished reputation can erode trust and goodwill built over generations, undermining the very foundation upon which the business stands.
At the heart of reputation management is the cultivation of transparency and integrity.
There are countless businesses who are often held up as stewards of tradition and values; it means that consumers count on them to uphold the ethical standards they’ve come to trust and expect.
Robust governance structures are essential in ensuring alignment between leadership ethos and the business’s practices.
In essence, reputation management is not a passive endeavour but an ongoing commitment to excellence and integrity.
Those who prioritise reputation alongside business performance are better positioned to weather storms, should the worst arise.
In addition to the importance of education and career development, nurturing entrepreneurship across the generations needs to be a priority.
It’s seen to be essential for the continued development of innovations that will bolster the competitiveness of the business while also sustaining the core purpose, principles and values of it too.
Governance structures have a role to play in formalising the processes that provide your people with opportunities to unleash their entrepreneurial spirit.
Ultimately, the clash between leadership or business interests isn’t necessarily a choice that must be made - if the right systems are in place to keep both balanced.
Through strategic governance, fostering entrepreneurial spirit, and proactive reputation management, businesses can navigate the delicate equilibrium between legacy (both existing and desired) and commercial success.
By doing so, they not only ensure continuity across generations but also carve a distinct identity for themselves, that stands the test of time.
Putting leadership ideas and bias first, or business first, isn’t necessarily a choice that has to be made if the right systems are in place to keep both balanced. B
At the heart of reputation management is the cultivation of transparency and integrity.
Nick
Pheasey, KPMG in the UK Partner and Head of the KPMG Family Office and Private Client team, KPMG in the UK
