TOWARDS THE MANIFESTOS: Business perspectives on poverty and inequality in the UK

by: Inclusive Growth Contributor | on: 30.10.23 | in: Business ethics, Inclusive Growth tags: Blueprint for Better Business, inclusive growth

Notes from a private virtual roundtable on Tuesday 17 October 2023 attended by a group of UK parliamentarians and business representatives

Introduction

Zahid Torres-Rahman, Founder and CEO of Business Fights Poverty, welcomed participants and referenced Business Fights Poverty’s publications on the role of business in tackling poverty and on the business case for living wages.

John Penrose MP, co-chair of the APPG on Inclusive Growth, outlined the context for the discussion, based on the APPG’s Towards the Manifestos project with the Policy Institute at King’s College London and the Fairness Foundation, which aims to identify areas of common ground between public attitudes, expert opinion, and the main political parties in terms of solutions to poverty and inequality in the UK.

Professor Bobby Duffy, Director of the Policy Institute at King’s College London, outlined the findings of recent polling on public attitudes to solutions to poverty and inequality in the UK:

• 85% of respondents are worried about inequality in the UK, with particular concerns about the concentration of wealth.
• There is no single solution, and people are broadly supportive of a wide range of measures to tackle inequality.
• Despite generational and political differences, there is broad common ground in terms of people’s preferences for how to tackle poverty and inequality, especially when it is framed around tackling inequality of opportunity, which appeals to those with more individualistic and meritocratic mindsets as well as to egalitarians.
• However, poverty and inequality are not at the top of people’s list of concerns, perhaps in part because they are not discussed very much by politicians or the media.

Will Snell, Chief Executive of the Fairness Foundation, set out the questions for discussion:

• What more businesses can do to help to tackle the causes of poverty and inequality in the UK?
• What support do businesses need from government to enable them to do this?
• How can businesses make the case for action by government to tackle poverty and inequality?

Breakout discussions

Group one discussed:

• The importance of digital access in addressing poverty and inequality, especially in terms of creating economic opportunities and skills development, and the role of businesses in promoting skills development and connectivity
• The importance of public procurement as a lever for government to encourage responsible business practices through social value requirements, alongside regulatory approaches
• The need to focus businesses on tackling poverty and inequality through their core business operations, rather than relying on philanthropy in ways that are not linked to it
• The need to develop clearer metrics for measuring social impact, with an opportunity for government to take more of a lead in this area as well as to highlight examples of private sector good practice and to champion the ESG agenda, as well as the opportunity for businesses to do more on making the economic and the social case for tackling poverty and inequality

Group two discussed:

• How poverty and inequality impact businesses, such as that people from disadvantaged backgrounds find it harder to access the job market, leading to unfulfilled roles and skills gaps
• Existing responses by businesses to tackle poverty and inequality, such as programmes to support disadvantaged individuals in accessing education and employment, addressing the social determinants of poverty, and working on social mobility
• The moral responsibility of businesses to address poverty and inequality, even when the issues aren’t directly related to their core operations
• The opportunity for businesses to work together more efficiently to support coordinated efforts, sharing best practices, and addressing these challenges at a larger scale
• The need for supportive government regulations, incentives, and policies that reward ethical practices, including tax incentives for good practices and penalties for harmful action
• How mandatory living wage floors prevent responsible employers being undercut by rivals
• The concept of a new national service that could focus on care and other community services
• The concept of a basic income as a way to address the impacts of automation on employment
• The importance of scrutinizing reports and data on business activities to make sure that businesses are held accountable for their actions

Group three discussed:

• Improving internal practices, such as hiring, training, and promotion, to provide opportunities for underrepresented groups, fostering a diverse and inclusive workforce
• Investing in social impact projects that address specific local needs, such as community revitalization or affordable housing
• Supporting education and skills development to create a pipeline of talent and to help communities participate in the workforce effectively
• The need for government to address income inequality through progressive taxation and social welfare provision
• The scope for public-private partnerships to drive investments in areas with high deprivation to create jobs and economic opportunities
• The need for government to invest in education and skills, for example by funding education and vocational training programmes that equip individuals with the skills required for the modern job market, thereby reducing poverty

Plenary feedback and conclusions

Overarching themes that came up in the plenary feedback included:

• Partnership between business and government. There was a consensus that businesses should be more vocal in making a case to the government about addressing inequality and poverty. Collaboration and partnership between businesses and government were emphasized as crucial to tackle these issues effectively. The role of business in providing solutions and making a positive impact on communities was highlighted.
• Core business impact. The discussion centred on how businesses could address inequality and poverty through their core business operations, rather than relying solely on philanthropy. This included offering equitable access to technology, financial services, and education, which are vital for closing the digital divide and improving access to opportunities.
• Measuring social metrics. Participants discussed the challenges of measuring social value and social metrics. There was a sense of an emerging consensus on measuring social impact and social need, with a range of initiatives in place.
• Challenges and risks for business. These included the potential loss of customers and employees, as well as concerns about human rights abuses and corruption. The complexity of the issue and the need for long-term solutions were acknowledged.
• Actionable steps for business. Participants discussed various proactive steps that businesses could take, such as ensuring that employees are well-supported and have access to fair wages, sick pay, and good working conditions, upskilling employees, using data to identify hotspots of inequality, and considering the impact of their products and services on underserved populations, particularly in terms of access and affordability.
• Government incentives. Participants suggested incentives to support underserved areas and groups and promote investments that benefit both businesses and communities. Businesses can play an important role in supporting local initiatives and programmes.
• Long-term focus. A common theme was the need for a longer-term perspective in addressing inequality and poverty, both in terms of business strategies (as well as long-term investments and patient capital) and political cycles.

Liam Byrne MP, co-chair of the APPG on Inclusive Growth, closed by encouraging businesses to remain engaged in these discussions (and not to leave the business of developing solutions to the politicians), and promised that the discussions from the roundtable would feed into the ongoing project that the APPG is running with the Policy Institute and the Fairness Foundation.