What do you learn from a conference?

Yesterday I attended the Institute of Directors Annual Conference. This is always an interesting affair and attracts speakers of the very highest quality. Reflecting on the day I wondered what delegates thought about the conference and what they will change when they get back to running their companies.

As is to be expected, the speakers provided a wide variety of views and opinions and some were of course contradictory! When I attend any conference the major selling point for me is "will I learn one thing that I can implement to improve my business"? If the answer is "yes" it is a success, if not then perhaps it was not worth it. Sometimes the learning points come via networking and casual contacts others through some inspiring or thought provoking comments made by a keynote speaker.

I have learned that it is unlikely that I will gain insight from a politician of any colour as they are all scared of making a definitive statement - a sad albeit understandable reflection. You can be entertained and informed by these individuals but will it change what you do? Not in my experience. The best speakers are usually those with less to lose in terms of career prospects etc and hence for me the highlight was Tim Smit the founder of the Eden Project. He articulated many of my values and was a resounding champion for ethical capitalism. It is not all about maximising profit but optimising profit and taking a wider view of impact on local areas. This is true sustainability. Those organisations that show scant regard for their customers or employees have a limited life - when it comes to the crunch they will be the hardest hit.

I noted three points which I think are good lessons for anyone in business:

1. Optimise profit not maximise profit
2. Do not shy away from the hard decisions
3. Stay away from the negative people - wherever they may be found

Nothing earth shattering but points that are all too often forgotten in the day to day operation of a business. Follow this guidance and you will most likely run a good operation.

There was a mood of underlying determination in the audience to prosper despite the mess that we are in through no fault of our own. I still maintain that this is an excellent time to start or grow your business and this view is shared with many commentators at the conference. I just wish that our political rulers could follow the guidance above and then we could all move forward with confidence.

Chickens Hugh and Tesco too!

I was contemplating my last post when watching the TV programme "Chickens, Hugh and Tesco too". I have been following this intriguing position in the news since it started and watching the events as they unfolded on the small screen made me consider the ethics of Tesco in this case. I have always been a reluctant supermarket shopper preferring to shop at local independants - and indeed I refuse to buy meat from a supermarket as it is generally tastless, filled with unwanted supplements and usually more expensive than your local butcher.

The way in which Tesco has behaved in this instance is an example of everything which I hate about how some businesses operate. They have been obstructive, bullying, evasive, stretching of the truth and interested in nothing but profit. Those institutions which invest in Tesco on our behalf (pension funds etc) were spineless and whilst I acknowledge that TV editing can sometimes present a biased picture, in this case I think that the general message was acurate.

The disregard for their reputation by Tesco is worrying but I have the feeling that this may be of greater importance than they yet believe. No one likes a bully and Tesco exhibits all of the traits expected of the playground tyrant. They have their day but eventually someone stands up to them and once that aura of invincibility is punctured the decline has started.

I probably do not spend more than a few hundred pounds per annum in Tesco and so I am of no importance to their profits but from now on I will not use Tesco until they show some moral fibre, an understanding of the communities which they claim to serve and the highest ethical standards in their trading. My clubcard is being returned to Sir Terry Leahy with a request that any unused points are donated to Compassion in World Farming to support Freedom Food as a minimum industry standard. I will not register on his radar or probably get any acknowledgement but if everyone did the same then they would have to take notice.

In the meantime take my challenge - do not buy any supermarket meat for one week and use your local butcher instead. You will find a big difference in taste, a friendly smile and who knows maybe a few more pence in your pocket. Then see if you want to buy Tesco chicken again.

Businesses need ethics!

P.S. I highly recommend the butchers at Walsingham Farm Shop in Norfolk - superb meat all reared within a few miles of the shop!

A question of ethics?

The current hot topic occupying much of the newsprint and airwaves is the revelation that certain members of the House of Lords (allegedly) were prepared to take money to make changes to the law. If this is shown to be true then to me it is much worse than the "cash for questions" affair as it involves changing the law of the land to benefit particular companies.

This raises the question of ethics in business and how/if they are applied. In my business life I have had dealings with companies as diverse as sole traders to multi nationals and in the overwhelming majority of cases I have witnessed the business conducted to the highest standard of business practice. I do understand the desire for a business to outshine its competition via any legal way possible, but to me equally culpable in the House of Lords case as the hapless peers, are the companies that sought to change the law of the state to their corporate advantage. To me this shows a complete lack of moral fibre, any semblance of business ethics and a total disregard for the welfare of the British public.

It is vital that busines is conducted to high ethical standards. This does not prevent successful companies from outsellimg poorer competitors or a constant evolution in the means of doing business e.g. internet trading. No business should be able to buy influence or changes to the law. This is quite frankly wrong in my opinion and debases the concept of enterprise in the minds of the general public. In recent years the thought of starting an enterprise has become more accepted as we have shaken off the "Del Boy" and "Arthur Daley" image of business people but this episode sets us back to the beginning.

We are told that there is no sanction for misbehaving peers other than a mild scolding and I am sure that the laws (if any) that were shown to have been changed will not be revisited. Again we are informed that reform to the House of Lords is too complicated but quite frankly these are excuses for inaction. How difficult is it to implement rules which absolutely preclude any such incentives for influence and have the sanction of a loss of title for peers and fines for companies? Common sense really but there will be an army of people looking at why it cannot be done rather than why it should be done.

Business ethics are vital to retain trust and confidence which are in short supply. Lets sort this matter out now - suspend any peer suspected of complicity and name and shame those businesses seeking unfair advantage banning them from both Houses and ensuring that any gains made are repaid into an industry fund for the benefit of all. I am tired of excuses for unethical practice - make the punishments sufficient to deter all but the crinimally insane.