Public now view litigation as a means to drive ethical behaviour

A report published by Portland this week, based on a poll of 2,000 people and 540 UK business leaders, found a growing majority of the public have a positive view of class actions as a way to win compensation, improve corporate behaviour and hold companies accountable for their actions. Some 65% of respondents would sign up to a class action and 57% believe class actions ‘often’ win compensation for claimants (up from 44% who held this view in 2023). Half of the respondents agreed class actions drive improvements in corporate behaviour.

However, the report, ‘Reputation and accountability: class actions, ESG and values-driven litigation’, also detected low public awareness of people’s eligibility to claim compensation in high-profile actions. Only 22% of the public knew they could claim compensation in Competition Appeal Tribunal claims, despite several high-stakes cases in recent years.

Among business leaders polled, more than three-quarters (77%) agreed directors have a duty to mitigate their company’s climate risks and two-thirds supported legal action to hold governments to account for climate breaches. Some 72% supported the use of litigation against companies accused of human rights in their supply chains, and more than two-thirds believe the increase in group litigation will improve corporate behaviour.

Simon Pugh, head of Portland’s litigation and disputes practice, said: ‘The data shows some really big shifts.

‘For the first time ever, our data provides real insight into how litigation with a moral and ethical purpose is being perceived by business leaders. Businesses need to adapt to these legal risks posed by a rapidly evolving legal environment; especially as new regulation takes hold.

‘But they must also be alive to the mood of the public on these issues. Companies who find themselves involved in litigation will find the risk to their reputation presents more challenges than just uncomfortable headlines.’