Around 43 per cent of those surveyed said they saw bullying on the school run but only half of those reported it, a study by the Anti-Bullying Alliance (ABA) found.
ABA chairwoman Ross Hendry said: "It's of great concern that nearly half of young people who see others being bullied do not report it and that such a large proportion don't think its any of their business to do so."
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Hide AdThe report was released as Beatbullying, a separate anti-bullying charity, prepared to launch a "digital demonstration" in support of children's rights.
More than 750,000 people, including Archbishop Desmond Tutu, have created virtual avatars that will "march" across around 60 partner websites against bullying.