Jenny Herrera, Author at Good Business Charter https://goodbusinesscharter.com/author/jenny/ Recognition for responsible business behaviour Mon, 13 Oct 2025 14:46:05 +0000 en-GB hourly 1 https://wordpress.org/?v=7.0.2 https://goodbusinesscharter.com/wp-content/uploads/2023/04/cropped-gbc-full-logo-full-colour-rgb-icon-32x32.png Jenny Herrera, Author at Good Business Charter https://goodbusinesscharter.com/author/jenny/ 32 32 Celebrating Commitment to Customers during National Customer Service Week https://goodbusinesscharter.com/celebrating-commitment-to-customers-during-national-customer-service-week/?utm_source=rss&utm_medium=rss&utm_campaign=celebrating-commitment-to-customers-during-national-customer-service-week Thu, 09 Oct 2025 07:30:26 +0000 https://goodbusinesscharter.com/?p=27658

9th October, 2025 Earlier this year, we were delighted to welcome the Institute for Customer Services (ICS) to the Good Business Charter (GBC). They joined fellow ICS members and GBC-accredited […]

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9th October, 2025

Earlier this year, we were delighted to welcome the Institute for Customer Services (ICS) to the Good Business Charter (GBC). They joined fellow ICS members and GBC-accredited organisations such as Aviva, Legal & General, Northumbrian Water Group and TSB  . 

During ICS’s National Customer Service Week, we’re highlighting our Commitment to Customers component. This requires organisations to publish their commitment to their customers, as well as gather customer feedback and address concerns – while our employee focussed components ensure that the staff providing frontline customer service are well supported.  

The GBC‘s founder, Julian Richer (founder of Richer Sounds, the UK’s largest hi-fi retailer), famously credits his business success to looking after customers and employees. These values are at the heart of the Good Business Charter. 

Why commitment to customers matters 

 We spoke to Craig Brown, COO, Retail at Legal & General (GBC-accredited and an ICS member) on why this commitment is so important: 

“National Customer Service Week is a fantastic opportunity to celebrate the passion and commitment our customer service teams, partners and intermediaries bring to our customers every day. It’s their efforts that set us apart, and I’m proud of the way our teams go above and beyond. Organisations that are thriving now are the truly customer focussed ones, and our customers want fast, efficient and personalised service. This has, and will continue to inform how we do things at L&G to ensure we continue to not only meet but exceed our customers expectations, guided by the Commitment to Customer principle of the Good Business Charter.” 

 We also spoke to Dawn Creighton, Head of Customer Strategy and Experience at Northumbrian Water Group (GBC-accredited and an ICS member): 

“At Northumbrian Water Group, our customers are at the heart of everything we do. We’re proud to be accredited by the Good Business Charter and members of the Institute of Customer Service (ICS), reflecting our passion for delivering unrivalled customer service, first time, every time. 

“This National Customer Service Week, we’re celebrating our teams, whether they support our customers directly or work behind the scenes, sharing stories of customer service excellence with internal awards and recognising colleagues who go above and beyond. We’re delighted to be welcoming Martin Connelly, Client Director at ICS who will be helping us to judge the top entries. 

“We’re also holding community events to thank our customers for the role they play in helping us to deliver brilliant service, such as supporting our ‘Bin the Wipe’ campaign, recognising that partnerships help make great service possible.” 

ICS’s CEO, Jo Causon shared her thoughts on being GBC accredited and National Customer Service Week. 

“The Institute of Customer Services is pleased to have become Good Business Charter accredited this year, and we are delighted that they have joined us this year in celebrating National Customer Service Week by shining a spotlight on its Commitment to Customers component.

We are looking forward to working with the Good Business Charter into the future to Inspire a Service Nation, where businesses show they care about their customers and in doing so benefit from long-term, sustainable growth.”

A call to business leaders  

This National Customer Service Week, we’re proud to stand alongside those celebrating the importance of making a fair and transparent commitment to customers and supporting their customer facing employees. It’s not just the right thing to do – it makes good business sense. 

If your organisation is already doing the right thing, we encourage you to get recognised for it by becoming GBC accredited. 

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Championing all workers in Employment Rights Bill https://goodbusinesscharter.com/championing-all-workers-in-employment-rights-bill/?utm_source=rss&utm_medium=rss&utm_campaign=championing-all-workers-in-employment-rights-bill Wed, 05 Mar 2025 13:10:23 +0000 https://goodbusinesscharter.com/?p=23242

5th March, 2025 By Jenny Herrera, CEO of Good Business Charter Yesterday, the Department for Business and Trade announced the amendments being tabled for the Employment Rights Bill.  Deputy Prime […]

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5th March, 2025

By Jenny Herrera, CEO of Good Business Charter

Yesterday, the Department for Business and Trade announced the amendments being tabled for the Employment Rights Bill.  Deputy Prime Minister, Angela Rayner, who recently spoke at our anniversary celebration said:

“For too long millions of workers have been forced to face insecure, low paid and irregular work, while our economy is blighted by low growth and low productivity.   

“We are turning the tide – with the biggest upgrade to workers’ rights in a generation, boosting living standards and bringing with it an upgrade to our growth prospects and the reforms our economy so desperately needs.”

She was delighted to find herself at our anniversary event in the company of many businesses who are broadly supportive of the measures to make work pay and champion the people who work for them, without which they of course could not function.

Business Secretary Jonathan Reynolds recognised this in the press release with his comment that “many businesses already have worker friendly practices in place and can attest to the positive impact they have on retention, productivity and job satisfaction.”

That is our experience and the experience of the more than 1,000 organisations that are accredited with the Good Business Charter. It makes good business sense to treat your workers well – there is a clear link to improved retention and productivity.

We were delighted to see in the amendments the commitment to include agency workers in the ban on exploitative zero-hours contracts.  Of course those who wish to work in that way – and we recognise that there are some who do – should not lose that ability to enjoy the flexibility afforded them by an opportunity to pick and choose when they work and for how many hours each week.

But, when we talk to businesses and really understand the mechanisms within their place of work, we are aware of some where there is a kind of subset of workers – the casual workers, the agency workers – who are seen as somehow separate from the business.  That is why we are passionate about the real living wage, fair hours and contracts and well-being, representation and EDI policies covering everyone on a company’s payroll, not just the permanent staff.

Some people choose agency work.  Many don’t, and if an agency worker has been working for an organisation for a significant amount of time – 12 weeks is the period bandied around to agree those regular hours – then we would argue that colleague is needed by the business and should be covered by legal requirements set out in the Employment Rights Bill.  Commitments to reasonable notice of shifts and proportionate pay when shifts are cancelled is also very important and aligns with our Fairer Hours and Contracts requirements that we have had in place since the GBC launched in 2020 – our definition of ‘reasonable notice’, agreed with the TUC and CBI in 2020, is two weeks.

The focus of the Employment Rights Bill is firmly on the low paid and ensuring work pays – agency workers on low pay are already struggling to make ends meet in the UK with the high cost of living – it is a question of dignity and respect to then ensure that they have security of hours, if that is what they wish (which Living Wage Foundation and TUC research would strongly suggest they do).

Great to see increased support for those same low workers when it comes to statutory sick pay too!

Paul Nowak, who also spoke at our event in February, underlined what we too believe at the Good Business Charter – that all businesses should be operating on a level playing field (and not just businesses but public and third sector organisations too):

“This is about creating a modern economy that works for workers and business alike. Driving up employment standards in Britain will stop good employers from being undercut by the bad and will mean more workers benefit from a union voice.”

The CEO of Good Business Charter accredited, Richer Sounds, Julie Abraham, summed it up nicely:

“At Richer Sounds, we have always put the treatment and wellbeing of our colleagues at the forefront of everything we do.  Any responsible business will know that well-treated and well-paid colleagues will be beneficial in numerous ways.  

Happy colleagues are likely to be more productive. This also leads to reduced stock loss and higher staff retention, which in turn, minimises recruitment and training costs, not to mention disruption to established teams.  We support any government legislation that will help end exploitative working practices and improve the lives of working people.”

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Finding your ‘north star’ in responsible business for the New Year https://goodbusinesscharter.com/north-star-clarity-for-the-new-year/?utm_source=rss&utm_medium=rss&utm_campaign=north-star-clarity-for-the-new-year Tue, 07 Jan 2025 08:55:42 +0000 https://goodbusinesscharter.com/?p=22064

How do we really know what a company is like? Often it is only when you work at it that the true nature of its priorities and culture become obvious […]

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How do we really know what a company is like? Often it is only when you work at it that the true nature of its priorities and culture become obvious – though other stakeholders may get a sense in their interactions with them.

Richer Sounds is well known as a company with an incredibly high level of retention – and no job vacancies. There is a reason for that – people who work there feel valued and enjoy what they do! Their customer accolades show that when people walk into the shop and interact with RS colleagues, they do sense this value for people – and other partners in their interactions feel it too.

Yet it is not just a general sense. Richer Sounds has a clear way of communicating what it believes in and its Founder, Julian Richer, has been vocal about his views on the importance of paying everyone a real living wage and ensuring they have security in their hours, for example.

Disclosure requirements

In a world where more ESG disclosure requirements are being created and increasing the reporting burden for companies, are we at risk of losing our clear, guiding principle on being sustainable? Are we moving to a world where companies report more than ever before, but are no longer pushing forwards on ESG agendas? Where we have plateaued in our efforts to improve?

I was recently told that the Corporate Sustainability Reporting Directive will add 200 pages to a company’s annual report – 200 pages!!! That represents an almost unfathomable amount of work to gather together all that data and ensure compliance. Yet outside of the benchmarking and reporting departments of big companies, what does that even mean to the rest of the workforce? Will it truly translate into concrete actions to improve practices and raise the bar on business behaviour? I fear true movement forwards on the agenda will be lost amid all the reporting.

In January 2023, Joe Kaeser at Siemens, wrote an article as part of the world economic forum, talking about the north star of ESG. Against a backdrop of criticism of ESG, he wrote:

 

‘ESG doesn’t need saving. It remains a clear ambition but it needs transparency. In an increasingly fragmented and volatile world, it is more important than ever for companies to have a clear compass. Having a “true north” is a prerequisite for sustainable management and for creating value for all stakeholders – and thus, for inclusive capitalism. Clearly defined and clearly communicated ESG goals can be this north star.’

When I read words like ‘clear’ and ‘transparency’ I am reminded that whilst the Good Business Charter may not be an in-depth audit of an organisation’s activities and approach to sustainability, it does provide an effective ‘north star’ in this space.

“There is beauty in its simplicity”

Liam Byrne MP, Chair of the Select Committee for Trade and Business, concurred.

Responsible business reports

Schroders Personal Wealth now produce a responsible business report each year, framed around the GBC’s components. I believe it meets that cry for clear definition and communication of ESG goals – explaining what they have done in the past year and what their plans are the year ahead. It is not just focused on historic compliance, nor is it simply vague intentions for the future. It is concrete and realistic. It is also easy to read and understand for lay people, not familiar with the technical world of sustainability. That means it can be read by their clients and by their colleagues, tapping into a hugely undervalued reality:

People want to work for responsible organisations and they want to do business with responsible organisations.

  • Almost half of younger workers (46%) want the company they work for to demonstrate a commitment to ESG, and 20% have turned down a job offer when the company’s ESG commitments were not in line with their values (KPMG, January 2023)
  • 97% of consumers think it is important for a business to act responsibly (TSB Consumer poll, June 2021)

People are also very busy and our attention spans are lower now than ever. Unless they are contemplating a significant investment, they do not want to wade through pages upon pages of annual reports nor plough through a company’s website trying to get a sense of the organisation. The great thing about a clear report communicated with colleagues is that those colleagues, who really know what it’s like to be in that organisation, can follow what is being said, and challenge it if inaccurate.

That is real transparency. It is honest and measurable ESG.

Kaeser summarises at the start of his article the following points:

  • Clearly defined and clearly communicated ESG goals can create value for all stakeholders and sustainable management practices.
  • For ESG to become a company’s “north star”, it should go beyond “E” and not solely focus on environmental targets.
  • It is also a leadership issue: there is no use if only top management knows about ESG goals.

A clear ‘north star’

Good Business Charter accreditation gives companies a ‘north star’ that goes well beyond the ‘E’ in ESG.  It is clearly defined and there is a requirement on accredited organisations to clearly communicate it. Compliance with the GBC will create value for stakeholders – very tangibly in the pay packets of low paid workers and lifting standards in the supply chain as well as paying suppliers on time.  These also lead to more sustainable practices with resilience in the supply chain and higher staff retention.

ESG goals often stay with top management because they either don’t think their workforce is interested or they are too technical to make much sense to those not trained in sustainability. Embedding the Good Business Charter in an organisation, making it part or your organisation’s email signature and ensuring everyone knows what it stands for and why the organisation sees it as important are easy wins to have that North Star visible to all and hold top management to account in decisions they may make.

I know for a fact an organisation with GBC accreditation will navigate the tricky decisions with real care as they are being held to account by their stakeholders. That means there are concrete actions and improved practice. If our 1,000+ GBC accredited organisations became 10,000+, all showcasing their commitments and targets in these areas, I am confident that there would be increased value for all stakeholders and wider society. Whilst everyone is head down in figuring out what disclosures are required for technical compliance with regulations, I have less confidence the UK workforce, suppliers and customers will see any improvement in their daily experience of capitalism.

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Straight-talking on zero-hours contracts https://goodbusinesscharter.com/straight-talking-on-zero-hours-contracts/?utm_source=rss&utm_medium=rss&utm_campaign=straight-talking-on-zero-hours-contracts Wed, 13 Nov 2024 09:02:45 +0000 https://goodbusinesscharter.com/?p=21218

14th November, 2024 By Jenny Herrera, CEO of the Good Business Charter For the final part of our Autumn blog series on workers’ rights, we’re addressing zero-hours contracts (ZHCs) and […]

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14th November, 2024

By Jenny Herrera, CEO of the Good Business Charter

For the final part of our Autumn blog series on workers’ rights, we’re addressing zero-hours contracts (ZHCs) and why the Good Business Charter supports efforts to end exploitative practices in these arrangements. While ZHCs are often defended for their flexibility, a closer look reveals a troubling reality for many workers.

Do workers really want zero-hours contracts?

It would be good to start by demystifying the much-stated comment that ‘most people want these’ because they like the flexibility ZHCs offer given they can turn down shifts they do not want to do.

Yet a poll of zero-hours contract workers conducted by the TUC in August of this year revealed that over 8 in 10 (84%) want regular hours of work, compared to just 1 in 7 (14%) who don’t.  

Those in favour of ZHCs often reference groups like students and retired people who are happy to take the occasional shift on this basis.  It can feel easy to trot these examples out, but actually if a retired person is doing some of these jobs, like events which require a lot of time on their feet, it is probably done because they need the work.

Similarly, if we make the assumption that students are happy to be at a company’s beck and call for shifts, and as easily dropped if not needed, it suggests a lack of respect and dignity for them.  It they have committed to a shift, they may well have said no to other commitments as a result.  Suddenly cancelling a shift without any pay may leave them missing out twice because of what they said no to.

Our position on fairer hours contracts

When the Good Business Charter was formed, the issue of secure work was a hot topic with a lot of back-and-forth on what was reasonable in this area of zero-hours and minimal hours contracts.  In the end we settled on a position of needing to give 2 weeks’ notice of shifts and to pay those shifts in full if cancelled within 2 weeks. In addition, each year there should be an annual review with the worker to see if they could be brought onto a fixed hours contract based on their work in the last year.

The government’s proposals reduce this one-year period to 12 weeks, helping bring security in quickly. They are currently consulting on issues around payment for shift cancellation. It is worth noting that the Living Wage Foundation sets a higher bar of 4 weeks for their Living Hours accreditation.  They have done a lot of work highlighting the double issues surrounding low pay and insecure work, stating that:

More than half (55 per cent) of low paid workers earning below the Living Wage are in insecure work (3.4m workers in total), compared to 11 per cent of those earning at or above the Living Wage (2.7m in total). This makes low paid workers around five times more likely to be in insecure jobs than those paid above the Living Wage.   

Why fairer hours matter

We champion responsible business behaviour and we want to see a country where people are valued. The nation is struggling with productivity and there is no doubt in our mind that if people have secure work that pays enough to live on, alongside genuine employee wellbeing, an inclusive workplace and one where they have a voice, the structure is in place for employees to be productive.

Our focus when talking about fairer hours is those struggling to make ends meet whilst guessing how much they’ll earn each month. On top of that they may arrange childcare and find a shift cancelled but be unable to cancel the childcare, thus having to still pay the childcare provision and ending up out of pocket.  Many on ZHCs struggle to get a rental contract or mortgage because of the lack of guaranteed fixed hours.

Aside from these practical issues, there is at work a terrible power imbalance where workers can be begging for shifts – McDonalds a recent example of this at play – and many are fearful of taking annual leave or being unwell in case they cannot pick up shifts afterwards because of it.  This is not how responsible businesses should behave towards people they are dependent on their business for.  After all, without people, there is no viable, functioning business.

The future of fairer hours

We welcome the Employment Rights Bill and its approach to bringing an end to exploitative zero-hours contracts. To businesses citing all those who like such contracts I would say that is not backed up by the reality of those on the lowest pay.  High-paid people doing a bit of extra work are clearly not the focus of this legislation – the flexibility of hours suits them as much as the company and they don’t get a huge financial blow if the work suddenly doesn’t materialise (indeed they may have insurance in place to cover this).

We appreciate businesses feel they need the flexibility of ZHCs but they must accept that is at the expense of the individuals involved – and not just because of the issues they experience with uncertainty of work and therefore income, but also those same individuals often find themselves isolated from the business’ general policies on wellbeing, employee voice, etc. Too often they are treated like a second tier of worker – seen as ‘just casual’ or ‘not core’ thus adding to that sense of vulnerability.

As the government consults on its approach, we would suggest if banning zero-hours contracts altogether is too difficult, it might utilise our fairer hours approach – something that has been agreed by business and worker groups alike. 2 weeks’ notice of shifts and paying a shift if cancelled within 2 weeks ensures businesses think carefully about who they actually need and respect the lives and finances of their employees. The idea of a discussion after a set period of time to then offer guaranteed hours is to recognise a reality and give the worker security.  That shouldn’t cause undue problems for businesses, or not for responsible, people-first businesses at any rate.

Keep up to date with our Autumn blog series!

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Removing the worry of getting sick: a call for safe and fair sick pay https://goodbusinesscharter.com/removing-the-worry-of-getting-sick-a-call-for-safe-and-fair-sick-pay/?utm_source=rss&utm_medium=rss&utm_campaign=removing-the-worry-of-getting-sick-a-call-for-safe-and-fair-sick-pay Thu, 05 Sep 2024 14:29:04 +0000 https://goodbusinesscharter.com/?p=20742

5th September, 2024 By Jenny Herrera, CEO of the Good Business Charter The Centre for Progressive Change is leading the way on its Safe Sick Pay campaign, a crucial initiative in […]

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5th September, 2024

By Jenny Herrera, CEO of the Good Business Charter

The Centre for Progressive Change is leading the way on its Safe Sick Pay campaign, a crucial initiative in a country where the Statutory Sick Pay system is one of the least generous in Europe. This is an area where the leadership shown by responsible employers is not just commendable—it’s absolutely vital.

The harsh reality of statutory sick pay

Government sick pay in the UK is so low (£116.75 a week, kicking in from day four) that it works out as less than £3 an hour for a full-time worker. It is nowhere near enough to be able to pay the bills. That means that when people are off sick, unable to work, they are worrying about money. More than half of people on Statutory Sick Pay are living in poverty.

And there is another problem – if you earn less than £123 per week with your employer, you fall below the ‘lower earnings limit’, and are not entitled to Statutory Sick Pay. TUC analysis in 2024 shows that 1.3 million people do not earn enough to qualify for Statutory Sick Pay – and women are twice as likely as men to miss out for this reason. 6.5% of women do not earn enough to qualify for statutory sick pay, compared to 2.8% of men. And men are far more likely than women to receive full pay when they are ill (62% compared to 52%).

Illness and poverty: a vicious cycle 

I also lead a charity that steps into the gap for people in UK poverty – and becoming unwell is a key catalyst for a ‘just-about manageable’ situation turning into a full-blown crisis.  Perhaps the illness lasts 2 weeks – but that is enough, with 3 days of no pay and then the remainder at such a low rate – to start a spiral of being unable to pay rent and then potential eviction or getting into debt with utility bills or similar in order to keep their home.

No-one chooses or wants to be ill.  And when you are ill, the most important thing to do is to rest and give your body time to recover.  You simply cannot do that when financial worries start mounting up which leaves many on low pay in our nation unable to afford to be ill!

Disparities in sick pay are a factor in the income inequality in our nation. In 2022, households in the bottom 20% of the population had on average a disposable income of £13,218, whilst the top 20% had £83,687.  I would suggest many of those top 20% have benefits through work for free private healthcare, and if not, have the disposable income to pay for it.  Meanwhile, the cleaners who come to their office or perhaps those serving food in the canteen live in fear of being unwell – knowing their disposable income is too low to afford any time on SSP if they even reach the lower earnings limit to receive it!

Impact on low-paid workers 

Furthermore, some of the lowest paid jobs are also those most likely to lead to sickness because of the sheer number of people they are dealing with in settings such as hospitality and healthcare.  The reality is we live in a country where some people are exposed to potential germs as part of their job but find themselves with zero protection if they were to get unwell from those germs.  This should sit uncomfortably with us – we were acutely aware of it during the pandemic but our key workers soon faded out of the limelight again, left to suffer alone.

The stress of needing to get back into work as soon as possible increases the risk people come back still unwell, spread that illness which can impact on productivity more widely and/or they soon become unwell again in a desperate cycle.  Are we really surprised the number of people off on long-term sick is so high?

Learning from good practices 

We can embrace a better way.  We can learn from good businesses.  We can listen better to our workforce to see what would be helpful for them.  We can adequately care for people in a way that keeps them from crisis.

Employee wellbeing does not stand in an island – it is linked to decent pay, secure hours, a genuine voice for employees, and a place where everyone feels included.  Indeed, the statistics quoted above show a concerning disparity between men and women which is an area of EDI that should have long been resolved – but remains an issue.

Get these things right and there is a good chance there will be less sickness in the first place – but illnesses exist and we will all likely suffer one thing or another at some time in our lives.  We urgently need to up our game on how we care for those in their hour of need – whether it be a bad head cold, a heart attack, depression or surgery after a car accident.  Let’s commit together to not add financial stress to their ailments.

Good Business Charter

At the Good Business Charter, we do not currently ask a specific question about sick pay in our accreditation but we do recommend as best practice generous sick pay, which has no waiting days and that matches or exceeds the real living wage.   We want our accredited organisations to be truly leading the way in how they approach sick pay.

We may not have a specific component on sick pay but I believe adherence to each of our 5 colleague components will help create a more supportive environment to help those who need support when unwell.  Firstly, those most impacted by the poor rates of sick pay are the people on low pay.  GBC accredited organisations commit to paying at least the real living wage to their employees which enables them to live to minimum income standards as established by Joseph Rowntree Foundation.

The challenges of low pay are exacerbated if they are also experiencing uncertain hours on top of that with all the insecurity zero and minimal hours contracts bring.  It feels like those making decisions on sick pay – Heads of HR/People and more senior – have too often forgotten the challenges of making ends meet on low wages.  That means becoming unwell can be catastrophic.  What to a business may just seem like a budget line is so important to individuals just about managing financially on low wages and petrified of becoming ill.

An example of good practice on sick pay is Leek Building Society who have a supportive occupational sick pay scheme, with full pay for six months for individuals with significant health conditions.

To find out more about the Centre for Progressive Policy’s Safe Sick campaign please see here.

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A call to champion Responsible Business https://goodbusinesscharter.com/a-call-to-champion-responsible-business/?utm_source=rss&utm_medium=rss&utm_campaign=a-call-to-champion-responsible-business Fri, 24 May 2024 14:25:25 +0000 https://goodbusinesscharter.com/?p=19951

24th May, 2024 By Jenny Herrera, CEO of the Good Business Charter It has never been more important to take a stand for a capitalism that does right by people […]

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24th May, 2024

By Jenny Herrera, CEO of the Good Business Charter

It has never been more important to take a stand for a capitalism that does right by people and planet.  We have grown accustomed to businesses who prioritise profit over people – in whole sectors we accept that low wages and insecure work is the norm.  We too readily resign ourselves to a lack of ambition around achieving net zero, or even putting into place the systems to ensure small businesses are paid on time!
 
In 2020 when we launched the Good Business Charter we billed it as simple common sense and something every business should be doing.  What has become clear in the past four years is that the Good Business Charter actually represents a high bar – one that far too many businesses cannot or will not commit to.
 
In a nation with growing inequality and a planet under huge environmental pressure, where everyone is seeking the answer in growth, we believe a virtuous circle starting with responsible business behaviour needs to be recognised, championed and encouraged.
 
If workers are paid a fair wage with secure hours that will lift more people out of in-work poverty.  If they are cared for, included regardless of who they are, and are genuinely heard they will feel respected and the business will see direct benefits in productivity and staff retention.
 
Businesses depend on key public services to operate and it cannot be acceptable that they can avoid paying their share of UK tax and thus fair contribution to things like the infrastructure they need to transport goods and that ensure their workers can get to work!  Every business was once small and there should be zero tolerance for a scenario where large businesses rely on slow payment to suppliers to finance their own operations, even to the point of pushing businesses to the wall.
 
Small business make up 99.2% of all UK businesses – paid promptly, and a nation of companies who all pay their taxes, will only help that virtuous circle of respect, dignity and productivity.  None of that should come at the expense of customers or those in a business’s supply chain, much less the planet!  Behaving responsibly extends to all these different stakeholders.
 
It is not a case of ranking them and choosing the most important, or perhaps the easier route.  That’s why we recognise accreditation on an ‘all or nothing’ basis – we say it’s not OK to pick and choose, go for the easy areas, talk a good talk whilst trampling over people, dodging taxes or polluting the planet.
 
This stuff really matters.  Ask anyone on low wages, zero hours contracts, those suffering the impact of the climate crisis, those in modern slavery or people overlooked due to a disability just to name a few.  It’s time to end bad capitalism.  In fact it’s long overdue!
 
In the run up to this general election we are calling on all parties to take a stand for responsible business behaviour.

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An amplified voice on encouraging Responsible Business Practices https://goodbusinesscharter.com/an-amplified-voice-on-encouraging-responsible-business-practices/?utm_source=rss&utm_medium=rss&utm_campaign=an-amplified-voice-on-encouraging-responsible-business-practices Tue, 14 May 2024 07:42:35 +0000 https://goodbusinesscharter.com/?p=19136

14th May, 2024 By Jenny Herrera, CEO of the Good Business Charter I think we all know that on our own we can achieve little. It is as we partner […]

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14th May, 2024

By Jenny Herrera, CEO of the Good Business Charter

I think we all know that on our own we can achieve little. It is as we partner with others that our collective voice can be amplified and the potential for change increases.

We are proud to partner with the Institute of Directors (IoD), who was our 1,000th organisation to accredit, and who recently published their manifesto for business, framed as a policy roadmap for the next UK government.

I wanted to highlight the overlaps with the Good Business Charter’s 10 components and reference other partners in this space as together we seek to drive change. As more organisations accredit with the GBC, we show that our standards are achievable and that therefore there is no reason not to make such practices the established norm in our nation. The Good Business Charter (GBC) and its accredited organisations put people first.

Pay Fair Tax

The IoD’s manifesto sets out key improvements they see as necessary to the business tax system as follows:

Reduce the complexity and improve the functioning of the business tax system

The UK has the longest tax code in the world, currently in excess of 21,000 pages. The code has more than trebled in size since 1997. This Byzantine structure is packed with offsets, loopholes and distortions which increase the scope for tax avoidance and reduce the predictability of outcomes for companies.

To ‘Pay Fair Tax’ is what the GBC expect of its accredited businesses. We also work closely (full disclosure: I am a Director of) TaxWatch which is a think tank seeking to expose tax avoidance and shine a light in particular on businesses that are using the loopholes and distortions the IoD refer to in order to avoid UK tax.

If all businesses operating in the UK were paying their fair share of tax (and individuals for that matter) we would be able to provide a better public service. It is a point of deep frustration that a company’s executives would take for granted the fact their workforce has been educated for free in this nation as well as the infrastructure they require to send and receive goods, without being willing – and indeed proud – to pay their fair share of tax.

We are not alone in feeling this frustration – for the last 11 years running, the Institute of Business Ethics annual survey on the British public’s attitudes toward business ethics  indicated that tax avoidance was the most important ethical issue for them.

We encourage all businesses to consider deepening their commitment to transparency on tax through accreditation with the Fair Tax Foundation. 

Prompt payment to suppliers

This is a topic close to our heart and one we regularly shout about alongside the leading champions on the topic – FSB and the Small Business Commissioner. We are delighted to see the IoD highlight it too as follows:

Increase reputational pressure on slow invoice payers

Companies that are paid swiftly can raise their productivity by spending more time on projects of economic value and less time chasing invoices. Yet less than one in ten of our members are aware that they can check on the payment practices of large employers. Far fewer feel able to take enforcement action themselves against slow-paying customers.

A new government should:

  • Publish twice-yearly rankings, by organisation, of the average time taken to pay invoices. Ranking lists should be actively released to the media.
  • Develop an aggregate headline indicator of the average invoice payment time across all qualifying businesses.
  • Require public sector entities employing over 250 people to report their payment practices through the same system as private entities.

We know some organisations have needed to change their systems to ensure prompt payment before they can accredit with the Good Business Charter. This highlights the fact an incentive is often needed to invest the money in improved systems to ensure prompt payment.

Where there is a will, there is a way – and TSB has been an example of leading the way on this, since becoming accredited with the GBC in 2020, prioritising their small suppliers and paying them on average in just seven days. We need to keep pushing to make it unacceptable for large companies to pay invoices late.  In our current digital era, there should be no excuse for not turning round an invoice quickly and getting it paid. Small businesses depend on it!

Employee wellbeing

The GBC requires businesses to commit to the physical and mental wellbeing of their workers. Incentives to do this can only be a good thing as proposed in the manifesto:

Support businesses to increase their overall investment in occupational health

Since the end of the pandemic, levels of economic inactivity due to long-term sickness have increased significantly. This has contributed to labour shortages; it is also a waste of valuable human capital. Employers’ provision of occupational health benefits should be incentivised by bringing additional occupational health costs into scope of additional tax relief under the Benefit in Kind exemption.

EDI

The GBC also requires businesses to commit to embedding robust EDI measures into their organisations. Under the skills and employment section the IoD proposes some ways government can help:

Encourage a more inclusive business environment

In order to maximise access to talent and boost productivity, responsible businesses are actively engaged in developing a welcoming environment for colleagues from all backgrounds.

Their proposals include introducing ethnicity and disability pay gap reporting for organisations with over 250 staff – a key area of focus for the GBC’s EDI component when we first launched (we have recently widened our questions to cover all protected characteristics but remain highly committed to ensuring the GBC champions those from ethnic minorities and those with a disability).

We are connected with Change the Race Ratio and have benefitted from input from the Chartered Institute of Personnel and Development to ensure what we ask in the GBC application and renewal process holds businesses to account in a meaningful way with that focus, highlighted here in the IoD’s manifesto, of encouraging a more inclusive environment.

Environmental responsibility

It would be strange not to have something in the IoD’s manifesto on sustainability. The GBC asks accredited organisations to agree to meet clear commitments on this. The IoD’s focus is on how government must take a lead here:

Sustainability

In order to become more sustainable, the interests of the business community are best served by a managed transition marked by effective government leadership on, and commitment to, net zero. 

IoD proposals include a ‘Help to Green’ campaign for SME’s and tax incentives.

The IoD has undertaken research which shows that only a quarter of SMEs have targets to meet Net Zero by 2050 and are calculating any carbon outputs. This makes GBC accredited organisations ahead of the curve with their commitments within our Environment component.

The Institute of Directors has produced a new guide which provides practical advice and guidance, along with examples drawn from eight case studies of how businesses can get ahead of the curve and meet their net zero targets. Further resources and training are available here.

The Good Business Charter and IoD amplifying messages at every level local, regional and national

We will continue to partner with the IoD to amplify these key messages.

I also recently had the privilege of addressing the Regional and Branch Chairs of the IoD as well as their Special Interest Group leads, as we continue to explore effective ways to partner with the IoD to create a fairer, sustainable UK where people matter. We hope that together we can build momentum on the ground in all regions of the UK, and encourage more businesses to commit to paying fair tax, prompt payment of suppliers, environmental responsibility and more through following the IoD’s lead and accrediting with the GBC.

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What businesses can do about inequality https://goodbusinesscharter.com/what-businesses-can-do-about-inequality/?utm_source=rss&utm_medium=rss&utm_campaign=what-businesses-can-do-about-inequality Wed, 20 Mar 2024 08:12:49 +0000 https://goodbusinesscharter.com/?p=18637

19th March, 2024 By Jenny Herrera, CEO of the Good Business Charter Oxfam started the year publishing a report entitled ‘Inequality Inc: How corporate power divides our world and the […]

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19th March, 2024

By Jenny Herrera, CEO of the Good Business Charter

Oxfam started the year publishing a report entitled ‘Inequality Inc: How corporate power divides our world and the need for a new era of public action‘.  It followed the annual cry from the High Pay Centre about how few days it takes the average FTSE100 CEO to earn the same as the average UK annual wage.  Just three days is the answer.

Oxfam followed up the report with a helpful series of emails pulling out some of the key elements.  Part 3 honed in on how corporates fuel inequality and the damaging impact of policies that undermine workers whilst the funds of the wealthy surge paint a shocking picture.  Here are a few stats they emphasised:

  • Of more than 1,600 of the largest and most influential corporations worldwide, a mere 0.4% of corporations are publicly committed to paying their workers a living wage and support a living wage in their value chains
  • 0.7% of these corporations meet a global bar for collective bargaining
  • Meanwhile, 82% of profits from major corporations were paid out in dividends and buybacks
  • Of the major global corporations, only 24% have a public commitment to gender equality and just 2.6% of corporations disclose information on the ratio of pay of women to men
  • An estimated $1 trillion in profits – 35% of foreign profits – were shifted to tax havens in 2022, depriving societies of resources to address inequality

It seems clear to me that the decisions large businesses are making are actively contributing to the rising inequality in our globalised world, and having just finished reading ‘The Inequality of Wealth’ by Liam Byrne, and ‘The Richer, The Poorer’ by Stewart Langsley, I have a better appreciation now of the specific picture in the UK and particularly how government policy has contributed to the current state of affairs where the wealthiest are shielded and the poorest struggle.

Yet, the very fact there seems to be increasing talk about inequality is encouraging.  Recognising there is a problem, and that increased inequality provides a real risk to society, is an important first step and I hope will help decision makers see that more fairness needs to be brought into our system.  A fairness that rewards every person who works a decent wage, where everyone pays their fair share of taxes.

The Good Business Charter represents a starting block on responsible business behaviour but as our team of trustees and staff have entered 2024, we have gained an increased appreciation for the high bar our 10 components actually set.  It shouldn’t be a surprise when I look at the stats that Oxfam report.  Too few businesses pay workers a living wage – directly in the UK in the form of the real living wage or indirectly ensuring living wages are paid through their supply chain.  Too few businesses facilitate collective bargaining to ensure their workers are heard, or find alternative ways to ensure the employee voice is heard in the boardroom.

Recent high profile cases of Brewdog and Capita abandoning the real living wage underline the way people – everyday, hard-working people – still seem to be bottom of the pecking order with profits to shareholders put first.  Profits that, in some corporations, are still too often inflated because not enough tax is paid on them before distribution.

One large organisation said to me this month ‘well, we didn’t actually need to change our behaviour to join the Good Business Charter’.  Their argument was that so much is governed by regulation that they have to do everything within the Good Business Charter’s 10 components.  It is lovely that they think that is the case – but what they need to realise is that they are exemplary and in the minority if they can accredit to the GBC.

Alongside a conversation like that, I’ve had conversations with others who feel unable to implement the real living wage to their regular contractors or have their small suppliers on long payment terms as standard practice.  Then there are the companies where their workers are in the UK … but their Head Office is mysteriously elsewhere.  The day we get a company change their registered office back to the UK in order to accredit with the Good Business Charter, and therefore pay their fair share of tax to the country educating and caring for their workforce, I will be dancing in the streets with joy!

Let’s not reinvent the wheel.  We have an accreditation that could become part of investing and procurement decisions, just as it is for customer and employee decisions.  The reality is that a country full of businesses committed to the GBC’s 10 components would truly contribute to reducing the terrible inequality that currently exists, and genuinely put all people first.

Join us in championing fairness and equity by supporting the Good Business Charter and accredit today.

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What is the Institute of Business Ethics https://goodbusinesscharter.com/what-is-the-institute-of-business-ethics/?utm_source=rss&utm_medium=rss&utm_campaign=what-is-the-institute-of-business-ethics Mon, 19 Feb 2024 09:00:54 +0000 https://goodbusinesscharter.com/?p=18062

19th February, 2024 As chair of the Institute of Business Ethics (IBE), that is a question that I am regularly asked. We exist to champion the highest standards of ethical […]

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19th February, 2024

As chair of the Institute of Business Ethics (IBE), that is a question that I am regularly asked.

We exist to champion the highest standards of ethical business behaviour. So we have a lot in common with the Good Business Charter – of which I am a big fan.

Charles Wookey and the late Loughlin Hickey, who did so much to establish Blueprint for Better Business used to say, only half-jokingly, it had taken them a year to develop their foundational one-side of A4 Blueprint Principles: https://www.blueprintforbusiness.org/the-principles/

And then a second year to produce Blueprint’s Framework for becoming a Purpose-led business: https://www.blueprintforbusiness.org/the-framework/

Well, in a similar spirt of partial jocularity, and recognising the value of brevity and “simplicity the other side of complexity,” I’d say, it has taken the IBE almost forty years, to refine down to a single side of A4, the essence of what we know about striving to do business ethically. In our case, this is our Business Ethics Framework. See below.

It starts with being purpose-led – so close links there to Blueprint; ethical values, leadership at all levels of a business; and all helping to shape organisational culture: the way we do business around here, especially when we think no one else is watching! In other words: behaviours: how does an organisation want and expect its employees to behave: to each other, to customers, suppliers, competitors and communities from which the business derives its licence to operate.

Supporting all of this, the IBE believes are some critical foundations. These include having a robust Code of Ethics which explains in simple language, how the business expects its

employees to behave to each other, to customers, suppliers, business partners, competitors and society at large. Is this Code regularly updated? Is it easy to find – or conversely one of those policies “somewhere on the company Intranet?!”

Are the key messages of the company’s Code of Ethics shared in induction of new employees? In regular training and refresh sessions? Does the business try to bring their Code of Ethics to life with real-world ethical dilemmas that people in the business have actually faced? Are leaders at all levels of the organisation talking about behaving ethically – and exploring openly some of the “grey” areas when it comes to ethical decision-making?

Amongst other foundational elements are the links to management training and especially to first-line management training. As a Companion of the CMI (Chartered Management Institute) I have reverberating around my brain, the fact that, according to CMI/YouGov research, 82% of new managers in the UK have received no formal management training before taking up post. It is also important to link ethical behaviour to rewards and recognition. I suspect many of us will know of organisations that talk a good talk on doing business ethically, but still reward and recognise “rainmakers” who bring in the results, no questions asked! And is there a genuine “speak-up” culture, so that issues are raised early, rather than when things have deteriorated massively, and employees have to resort to the “nuclear option” of “whistle-blowing?”

To help businesses large and small, to embed the different “building blocks” of the Business Ethics Framework, the IBE has lots of Good Practice Guides, Board Guidance and innovations notes, in our IBE Knowledge Hub: https://www.ibe.org.uk/knowledge-hub.html

Having all of these foundations in place does not automatically guarantee that a business will always behave ethically – all human institutions – by definition – are fallible; but having these different components of the Business Ethics Framework provide the best “fighting chance” of avoiding ethical lapses – or ensuring faster recovery if ethical misbehaviour has occurred.

In support of all of this, the IBE has a Triple-A role: as Authority on doing business ethically, as an Adviser to individual businesses (often when they need extra help after some ethical problems) and as an Advocate for the positive business case for doing business ethically (as well as it is just better business and the right thing to do!).

As our supporters know, we aim to fulfil the Triple A role through a variety of means including board briefings, Good Practice Guides, webinars, training programmes and working internally with individual businesses.

Business never stands still and the issues confronting businesses that want to behave ethically, continue to expand. In the coming months, therefore, we will be paying particular attention, for example, to the issues of using Artificial Intelligence ethically and safely; and how young people think about what it means to do business ethically.

All of this is why the board and executive team of IBE are so clear that the need for an organisation like the IBE is even more relevant today that when we were founded almost

forty years ago. I would also argue that we are a perfect “Yin” to the “Yang” of the ten specific commitment areas of the Good Business Charter. Uniting the work of both the IBE and GBC is a sense of fairness, of treating others fairly.

David Grayson is chair of the Institute of Business Ethics.

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CBI reaccredited with the Good Business Charter https://goodbusinesscharter.com/cbi-reaccredited-with-the-good-business-charter/?utm_source=rss&utm_medium=rss&utm_campaign=cbi-reaccredited-with-the-good-business-charter Wed, 07 Feb 2024 11:04:48 +0000 https://goodbusinesscharter.com/?p=17860

7th February, 2024 The Good Business Foundation announced today in its inaugural Good Business Week that it had reaccredited business group the Confederation of British Industry (CBI).  Good Business Charter […]

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7th February, 2024

The Good Business Foundation announced today in its inaugural Good Business Week that it had reaccredited business group the Confederation of British Industry (CBI). 

Good Business Charter accreditation represents a high bar of responsible business behaviour, held by companies including Aviva, TSB, St James’ Place and Richer Sounds. Following the allegations in Spring 2023 of sexual misconduct and harassment, the Good Business Foundation (the charity that runs the Good Business Charter) suspended the CBI’s accreditation because of concerns specifically around its commitments to employee wellbeing and employee representation. 

The CBI was a founder of the GBC when it was launched in 2020 and helped develop its 10 components. Following rigorous assessment, its GBC accreditation was reinstated with the team satisfied that the business group has put robust measures in place. The GBC team particularly applauded the CBI’s decision to have the Chief People Officer report directly to the Board and be on the Executive Committee. This is a really effective way for any business to help ensure the voices of their whole workforce are heard. 

Julian Richer, founder of the GBC and champion of responsible business commented: 

The CBI’s experience shows that true commitment to responsible business takes time and resources but is so worth the effort. We all have areas to improve but we have been impressed with the scale and depth of the CBI’s efforts to improve its workplace culture including clear benchmarking and ongoing monitoring of how employees are feeling. 

Rain Newton-Smith, CBI Chief Executive said:

“We are incredibly pleased to have earned reaccreditation and encourage other companies to make this commitment to responsible business. It’s important to me that everybody feels proud of being part of the CBI and working together to co-create our values of integrity, respect, courage and brilliance has been an empowering experience. Working with experts we have strengthened our culture and improved our training and processes, bringing in measures to ensure that employees’ voices are heard and acted on. And while today we celebrate this achievement, I also recognise that building a better organisation is an ongoing journey, requiring constant review and evaluation so as not to allow complacency to set in.” 

The GBC is taking this week to celebrate good business, focusing different days on some of the key issues such as fair pay, prompt payment to suppliers and employee wellbeing. 

CEO of the charity and campaign, Jenny Herrera, said: 

We believe there should be a clear benchmark of what responsible business behaviour looks like so that customers, employees, investors and other stakeholders can differentiate between good and bad. It’s time we all took a stand against companies dodging taxes, trampling over people and wrecking the planet. In Good Business Week we encourage everyone to share their stories of why #GoodBusinessMatters 

 

ENDS 

 

Notes for Editors 

 

About the Good Business Charter 

The Good Business Charter was developed, and is overseen by, the Good Business Foundation, an independent charity established in 2019 by entrepreneur Julian Richer. 

The Charter is a simple accreditation which organisations in the UK can sign up to in recognition of responsible business practices. It measures behaviour over ten components (nine for charities and public sector): real living wage; fairer hours and contracts; employee well-being; employee representation; equality, diversity and inclusion; environmental responsibility; paying fair tax; commitment to customers; ethical sourcing, and prompt payment.  

An organisation must meet all ten components (nine for charities and public sector) to receive GBC accreditation. It is open to private sector, public sector and charities of all sizes including a streamlined version for organisations with 50 employees or fewer. 

The Good Business Charter is an initiative of the Good Business Foundation, charity number 1186547, company number 12278437. 

Contact:  Jenny Herrera, CEO | jherrera@goodbusinesscharter.com | 07703 453826 

Website: www.goodbusinesscharter.com 

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