The polls may not have predicted it, but the underlying causes of the upset outcome are evident. So what do we do now?
Many in Britain will have had the same sinking feeling on waking up to hear the outcome of the US presidential election as they did in June after the Brexit referendum. At time of writing, the final tally is awaited, and Hillary Clinton may even be slightly ahead on the popular vote, but the picture is clear (and remarkably similar to UK): a nation dramatically divided 50/50 with the former industrial ‘rust belt’ states (read northern Labour heartlands) swinging decisively against the so-called establishment elite.
Back in the summer, this is what I said here in Briefing about the outcome of the UK vote:
“The major corporations need to wake up to the fact that trickle-down globalisation isn’t working.… Simply put, owners of capital have done just fine since the global financial crash, and that includes many Western baby-boomers; but middle wage earners have not. Our great corporations like to present themselves as a much-misunderstood force for good. Western voters clearly disagree.”
Amid continuing concern about the hard economic consequences of Brexit, there’s cause for optimism from good progress on the Paris climate agreement and the roll-out of the Global Goals.
Martin Schulz signs Climate Agreement
Mark Carney, the softly-spoken Canadian governor of the Bank of England, provides a rare focus for optimism right now. Indeed he has been dubbed by one pundit ‘the only adult in the room’ while politicians play children’s games.
He can’t do much about the remorseless logic of the UK government putting border controls and immigration limits ahead of staying in the world’s largest trading block and what that will do for economic prospects; still less about the possible global consequences of Brexit’s American cousin, Trump, should that come to pass next month.
But he is intervening vigorously in the debate about opportunities arising from the move to a low carbon economy. His timing is excellent, with the EU Parliament fast-tracking its approval of the Paris Climate Agreement, meaning we are now over the threshold of 55 countries equating to 55% of global emissions needed for ratification. Continue reading
An opportunity to kick-start a move towards more mission-led companies is getting caught up in Brexit fall-out.
A little reported but potentially momentous bit of thinking is going on in the depths of the UK government. Earlier this summer the Cabinet Office started a consultation on ways to strengthen so-called ‘mission-led’ businesses. One question arising is whether we need a new form of corporate structure to encourage them.
The consultation set the scene like this: “The traditional roles of civil society and business are changing for the better. The social sector is becoming more business-like and businesses are keen to demonstrate their social impact. Continue reading
Too many companies are trapped by the ‘curse of materiality’ and aren’t accepting the challenge of change.
When the Global Goals were agreed last September, I hailed them as setting “the new, de-facto global standard for businesses to design, measure and account for their contribution to sustainable development”.
I said they present a unique opportunity for businesses to align their programmes and purpose to the needs of society – and in so doing, grow the business, reach new customers and markets, develop new products and boost the bottom line. Since the SDGs set out the issues the world has agreed are THE global priorities, business can’t succeed in the long run unless these aims are met.
That’s why I described them as providing the gateway for any business to shift from Continue reading
Britain’s referendum result has its roots in long-standing economic unfairness, and it will get worse unless business learns some lessons
The shockwaves from the UK’s vote to leave the European Union continue to reverberate around the world. Economists speculate on the implications. Politicians with elections looming in Europe and America worry what it means for them. Individual citizens in Britain – well, about half of them – ask profound questions about their country and the divisions so starkly revealed.
The sense of shock and the search for meaning is palpable. I will resist adding lots to the Continue reading
Corporations spend billions every year on causes and in communities around the world. But a shocking new survey shows they actually know little about the difference it makes.
Nowadays everyone agrees that spending shareholder funds in scattergun philanthropy doesn’t make sense: it’s not good for people in need, nor for companies trying to justify and sustain a community investment (CCI) programme.
So Corporate Citizenship asked corporate responsibility and sustainability practitioners how they set objectives and whether they measure outcomes. Over 130 practitioners from around the world replied. A massive three quarters said they aspire to achieve long-term Continue reading
Where does good decision-making in business come from? Let’s look at the role of data, seek inspiration from Plato, and consider if companies are potentially wasting billions in their community investment.
The power of numbers is embedded in modern management…. The numbers speak for themselves. What’s the bottom line? If you can’t measure it, you can’t manage it. We use phrases like these all the time, albeit often with a heavy heart.
Comments from my colleagues in this month’s CCBriefing help us come to terms with this. Mary Ellen Smith calls for quality in KPIs, while Charlie Ashford says radical transparency is both inevitable and an opportunity for companies. I’d add my own plea for us to rediscover the power of balanced scorecards. First popularised in 1992 by Robert Kaplanand David Norton at Harvard Business School, they broaden the focus from historic profit to non-financial and forward-looking aspects. Crucially, they harness the numbers into a decision-making format. Continue reading
Short-termism in the boardroom doesn’t just damage investors, it hurts us all. Thankfully, the evidence – sometimes from surprising places – shows that doing the right thing does pay off.
Here in London, voters are choosing a new mayor as I write. By the time you read this, we’ll know the outcome. During the campaign, the one issue all the candidates have agreed on is the lack of affordable homes – or rather the imbalance between restricted supply and escalating demand which is driving up the price of all forms of housing, whether purchased or rented.
The think-tank New Economics Foundation (where I’ve just joined the board of trustees) used the occasion of the Queen’s 90th birthday to show how the rise in UK house prices have outstripped average earnings twice over during her lifetime. There’s not much point in being 21,839% better off (yes really, in money terms) if you still can’t afford to put a roof over your head. In London, the trends are even more acute. Continue reading
Controversial taxi company, Uber, has just launched a new statement of mission to reposition the business. They follow in the footsteps of others, but beware of the dangers.
Technology is disrupting many businesses. Enabled by smartphone apps, radical change is coming – and just one example is playing out on the streets of London, where 100,000 private hire vehicles now compete daily with the traditional black cab trade. Behind it is Uber and its army of self-employed drivers, all part of the new sharing economy. Famously forthright, the London cabbies are still only arguing about this change in their livelihoods, unlike Paris where militant drivers took to the streets.
Uber started out in 2009 as UberCab in San Francisco, and has grown exponentially ever since. It recently relaunched its corporate branding. Out went the classic U logo and in came flexible treatment in its different markets, built around a new statement of corporate purpose: not a taxi app any more, but all about “creating industries that serve people – Continue reading