26 Aug ESG: SMOKE AND MIRRORS; SPOTTING MISINFORMATION
Welcome to this week’s business and media intelligence update.
ESG: SMOKE AND MIRRORS
With the busiest week of the financial reporting period behind us and the countdown to Annual General Meeting season underway, companies are likely to come under increased scrutiny from the regulator over their environmental, social and governance (ESG) claims.
The Australian Securities and Investment Commission (ASIC) this week warned businesses and fund managers to avoid overhyping climate change credentials — best known as “greenwashing” — saying it was actively investigating fake claims.
It comes as a new survey by consultancy firm Behaviour Insights Team has found that most consumers and investors are gullible when it comes to a company’s ESG standards.
SPOTTING MISINFORMATION
Researchers from Google, Cambridge University and Bristol University have found that teaching people how to spot misinformation – by showing them videos about the tactics behind lies and conspiracy theories – made them more sceptical about what they read or watch.
While education may still not be enough to sway people with deep-seated beliefs, co-author Professor Stephan Lewandowsky believes propaganda and lies are predictable and that “pre-bunking” can help reduce susceptibility to falsehoods.
With organisations often on the backfoot when it comes to misinformation, researchers are hoping tech companies and other organisations will use their findings as a template to pre-emptively address the issue.
STAYING SCHTUM
Bosses who try to play it safe by not sharing their personal political views to avoid offending employees, colleagues or clients may actually be doing themselves a disservice.
A study published in the Harvard Business Review of 4,000 employees from a variety of workplaces in the US found that people were more suspicious of colleagues, managers and public figures who refused to express their political opinions. The reason? They thought they were trying to hide something.
“Whether you’re talking with a handful of colleagues in a Zoom meeting or releasing a public statement to millions of fans, trust is key — and the longer you wait to weigh in, the more suspicious people are likely to become,” the researchers said.
JUDO MAKES ITS MARK
Judo Bank, Australia’s first challenger bank for small and medium-sized businesses (SMEs), and a long-standing client of Cannings, yesterday posted a profit – becoming one of the first banks globally to achieve this within five years of launch.
The lender reported a net profit of $15.6 million in its maiden set of full-year results, more than double the original prospectus forecast.
Judo also exceeded all of its prospectus targets in its first year as a listed company, despite continued economic uncertainty and as other major banks applied blanket risk decisions.
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