Are embarrassed all round when it’s brought up (6)
I believe the answer is:
reared
'it's brought up' is the definition.
('rear' can be a synonym of 'bring up')
'are embarrassed all round' is the wordplay.
'embarrassed' becomes 'red' (someone may blush or go red when embarrassed).
'all round' means one lot of letters goes inside another.
'are' placed within 'red' is 'REARED'.
'when' is the link.
(Other definitions for reared that I've seen before include "upright" , "Fostered, brought up" , "Provided and cared for during childhood" , "Brought up, nurtured" , "Trained" .)