Bradford companies will be judged more on how they do business rather than just their performance, a new report says.

According to leading business advisers KPMG, 2013 will be a year in which how businesses conduct their affairs takes centre stage, with a focus on issues that would once have been deemed internal matters.

KPMG’s Yorkshire & Humber Business Instinct Survey found that more than half of the region's larger companies were responding to pressures around sustainability, anti-bribery and corruption legislation and diversity matters. Media focus on executive pay had also caused 41 per cent of firms to take steps in that area.

The high profile of such issues was already influencing corporate behaviour, said KPMG. An increasingly transparent business environment meant that local companies would be expected deliver growth while complying with a complex legislative agenda. Chris Hearld, KPMG’s Yorkshire senior partner, said: “After the turbulence of recent years, the region’s businesses will be forgiven for seeking calmer waters in 2013. There are indications that in economic terms at least this may well be delivered. The region’s economy has stabilised and while we would all welcome more dynamic growth conditions, stability is businesses’ most critical ask.

“However, as our survey suggests, there are winds of change around business behaviour, stemming from political, regulatory and consumer pressures. Risk management should be moving up the boardroom agenda in 2013 as scrutiny and expectations of good corporate governance and citizenship, as well as commercial success, will only increase during the year.”

Mr Hearld said focusing on sustainability was sensible given its relationship to many commercial considerations, from brand enhancement to cost reduction and risk management to regulatory compliance.

KPMG’s latest Survey of Corporate Responsibility Reporting found that two thirds of the UK’s largest 100 companies were now reporting their corporate responsibility activity, but suggests that sustainability strategies were in their infancy.

Anti-bribery and corruption legislation was also cited as a behavioural game changer as businesses in the region face a higher level of risk from a bribery perspective as they increasingly form overseas alliances.

KPMG said the profile of executive pay was also expected to rise further, suggesting that 2012’s “shareholder spring” may have been just a rehearsal for the real flexing of shareholder muscle on pay likely in 2013 and 2014 when a higher number of long term incentive plans face renewal.

Mr Hearld said: “Yorkshire’s corporate leaders can certainly expect more, and broader, issues than ever before to be on their plate on 2013.

“That said, the benefits of implementing responsible business practices are wider than simply being a good corporate citizen, they help the bottom line. Risks are reduced, costs are lowered and reputational benefits enhance positioning to both customers and potential recruits. They contribute to commercial success.”