For better, for Richer  It’s tough out there. But you can see your business prosper – and sleep better

We have a few modest claims to fame. We are consumer association Which?’s retailer of the year for six years running. We feature in the Guinness World Records for having the highest sales per square foot of any retailer in the world, from our very first store. We importantly – and unusually in our sector – have a gender pay gap in favour of women. But the achievement of which I’m most proud is that for decades we have given 15% of our profits to charity. This has enabled us to fund ten of our own not-for-profit organisations doing fantastic work.

The importance of ethos

These accolades don’t just fall from heaven. They are the product of hard work and perseverance. But they are only possible because of our ethos as a company. You must be commercial to succeed in business. But that can absolutely sit alongside a genuine ethical stance. This is what I most commonly refer to as being a responsible business. I want to ensure that any profit I make is neither at the expense of others’ misery nor the wrecking of the planet. This might sound simple. But if you fail to bake it into your business model, it can easily happen – especially as you grow.

My motto – which should be the key takeaway – is that ‘it’s all about the people’. This is not a soft platitude, but a hard truth. You will see a completely different output from people depending on how you treat them, so please remember this when dealing with all your stakeholders. These include your staff, customers, suppliers, subcontractors, investors and the community where you are based, to name a few.

The Good Business Charter

The reason we have received awards for customer service is that we are genuinely passionate about it. Crucially, we reward great service, just as we do sales. Loyal customers are the best advertising campaign you could ever wish for! Customers are invited to write directly to my office if they have a complaint. I oversee them all.

In 2020, I launched the Good Business Charter (GBC), developed with the Confederation of British Industry and Trades Union Congress. GBC’s goal was to become the UK’s benchmark of responsible business behaviour. The charter comprises ten components to which organisations must commit. Five of those relate to employees. Why? Because responsible businesses recognise how important their workforce is and cares for it. I wish I could say that businesses will be unsuccessful if they fail to commit to the charter. But the reality is there are still too many companies that are commercially successful with staff on low wages and insecure hours – their wellbeing needs unmet. This is usually for nefarious reasons – historical market dominance, monopoly power and the like.

However, I can absolutely say that you can still be commercially successful if you genuinely treat your colleagues – as we call our workers – well. It is most definitely not an either/or. We have been proud payers of the real living wage for many years. This is a wage that is calculated on the actual cost of living in the UK. I want my colleagues to come into work and give their best, but how can they do that if their wages won’t cover their basic living costs? That is simply inhumane. This is also the reason I abhor zero-hours contracts – where people are having to sleep in their cars due to being unable to rent a flat because they don’t have a secure regular income. It is also deeply unfair on working parents, who can be left out of pocket when shifts are cancelled at the last minute, having already arranged childcare.

Inner strength

Regarding people, here are two more tips. First, wherever possible, promote from within. Nearly all our directors started on the shopfloor. The only exceptions are where specialist skills are needed. Showing loyalty to one’s people is fantastic for morale. It is also a powerful driver of retention.

Second, when recruiting, focus on attitude. When we recruit colleagues for our stores, we seek people who are naturally warm, enthusiastic and have a positive attitude. Other skills can be taught. Of course, after training, our expectations are high – colleagues must know their stuff and be ready to work hard. I also strive to be kind and compassionate with everyone, remembering that they are individuals with their own lives.

Every week, I am sent the morale scores across the business. This is a quick but effective litmus test that identifies anything awry. Colleagues are asked in confidence to give a simple score between one and ten as to how they are doing. I also receive a weekly colleague care report. I personally call any colleagues who have suffered a bereavement or serious illness. I appreciate that would be a challenge if your business has thousands of employees. But the great majority of businesses in the UK have many fewer staff. Even the largest corporations should be able to incorporate something similar into their senior team’s practices.

There is much talk of ‘purpose-driven’ business, though arguably that is fading a little now. I find the term vague. Every business has a purpose; the problem is that it might not be a positive one! Yet a word like ‘responsible’ is something we can all understand. It has a clear opposite too – there have been many scandals from irresponsible businesses making the headlines over the years. At its core, being a responsible business means treating others as you would like to be treated. And it’s OK to make a profit. In fact, if you don’t, you fail. Responsibility isn’t some kind of fluffy alternative to being a profit-making business. It is part and parcel of how to be profitable.

Why do we think it is acceptable to pay suppliers late, or on long payment terms, when we expect to be paid on time in 30 days? There are basic principles of fairness at play here. I am passionate about us all being on a level playing-field, which is why it is galling when you hear of businesses failing to pay their fair share of tax, or human rights abuses in the supply chain to cut corners. It is not right. The public agrees. TSB polling finds that 97% of consumers want to shop with responsible businesses. But it also makes good business sense.

There is an opportunity to raise the bar on business behaviour so that doing the right thing becomes the norm – and businesses that do otherwise are pushed out. That only works if the public know who the responsible ones are – and who are not. This is precisely what the GBC does, it is the definitive signpost to the ‘good’ companies. The IoD is a proud signatory. We applaud its excellent work on the Code of Conduct for Directors – with its focus on responsible business behaviour.

The debate about ESG will circle around us. Yet we absolutely believe that committing to the GBC’s ten components – and in turn receiving our accreditation – means you’ll sleep better at night, you’ll get the recognition you deserve, and your business will prosper. Come, join us on this exciting journey.