This article is from the January issue of Total Politics
Over recent years the phone-hacking scandal, financial collapse and expenses scandals have rocked the UK establishment. The public is tired of media corporations, politicians and bankers behaving without proper regard for the law or normal moral codes that bind us. A fundamental change is needed to reform a system that institutionalises unethical behaviour.
It is now universally accepted that companies have social and ethical responsibilities, but the UK’s short-termist business culture acts against this.
As chairwoman of a cross-party parliamentary group on international corporate responsibility, I frequently meet businesses whose ethos is ‘people before profit’, who treat their staff properly and mitigate against their social and environmental impact, particularly in the developing world. Frequently, however, they are undercut by companies that drive down standards in the pursuit of profit.
At a bare minimum our government should use its considerable leverage to persuade others to create a level playing field, but there are also unilateral measures it should take.
Government should speak with one voice. The Foreign Office cannot successfully promote human rights while the Department for Business, Innovation and Skills subsidises projects that undermine them, and the Ministry of Justice pushes through laws that prevent penalisation of companies that undermine human rights.
Simple measures, like requiring businesses to declare the social and environmental impact of their actions, and to meet conditions to list on the London Stock Exchange, would help create an accountable system and encourage long-term, strategic thinking.
The UK can and should lead the world in ethical business standards to ensure that British business does good – and ensure it is not rewarded for doing harm.
Lisa Nandy is the Labour MP for Wigan