British Business
Written by Jimmy McLoughlin Photography by Annie Spratt
With the after effects of the financial crisis, the rise of populist politics, a renewed focus on social issues and major upheavals such as Brexit, the 2010s were a tough decade for businesses and business leaders. The next decade promises to be equally challenging, particularly as consumers and society generally place increased emphasis on issues such as sustainability and the economic, social, governance (ESG) agenda. Business columnist and former government adviser, Jimmy McLoughlin, sets out what businesses must do to respond.
Businesses in the 2020s must make their case to a wider audience about the benefits that they bring to society. It is not simply enough for them to say “we employ people and make a return for shareholders, that is all we need to do.”
To that end, it is time for corporate leaders to invoke the spirit of John F Kennedy. It is no longer enough for them to ask what Britain and governments can do for them; they need to start demonstrating what they do for their country and their citizens.
Since the 2008 crisis, low wage growth and a lack of productivity gains has made the UK more sceptical of the value that corporate Britain delivers. Combined with corporate scandals from Carillon to BHS to most recently Thomas Cook, it is time for businesses to step forward and explain the benefits they bring to society.
There are some remarkable stories of how business is improving society on a daily basis. Look, for example, at how James Timpson of the key cutter and repairer is becoming the single biggest employer of former offenders, achieving far more than any number of Government initiatives could achieve.
Corporate leaders have become quite efficient at making the case to their ‘key stakeholders’, whether its investors, board members and employees. However, in a more scrutinised world than ever before, corporate leaders need to take the time to explain not just to their employees but also the wider country what they are doing to improve the UK on a daily basis.
Many are at the forefront of tackling mental health and climate change, for example. Many cite not wanting to get involved with politics, but business, like politics, needs to be viewed as a constant state of campaigning.
The greatest challenges of our time are more likely to be solved by the private sector than by state actors. To go even further than JFK, they need to explain what they are doing for everyone in the world, and not just what the world can do for them.
Jimmy McLoughlin
Jimmy McLoughlin OBE is a business columnist for the Times. He was the Prime Minister’s Business Director in Downing Street until the end of last year and Head of External Affairs at the Institute of Directors before that. He is currently studying entrepreneurship at the University of Stanford in the United States.