Business must address reputation problem, says CBI chief
Cridland points to campaign to get young people working as a way business can help society
The CBI Director General, John Cridland, devoted his keynote speech at the business group's annual conference to the role of business in society.
He quoted Edelman's Trust Barometer in which only 44 per cent said they "trust business to do what's right".
Mr Cridland argued that "somewhere along the line some businesses have become disconnected from wider society.
It seems they've not had the same success in talking to people in their communities as they've had in talking to their colleagues".
Mr Cridland explained that the issue had become even more relevant in recent times. He said: "From before the financial crash, and most certainly since; outside St. Paul's; and even more importantly in the sitting rooms of those watching who aren't sure what they think, but have at least some sympathy for the underlying issues."
Much of the problem was one of perception, he claimed, saying: "FTSE 100 chief executives now earn 89 times more than their median full-time employees. I accept that we compete in a global market for talent, and I believe absolutely in rewards for success. But it's not hard to see why some people think differently."
Firms should not measure every aspect of their business by a contribution to the balance sheet, the CBI chief continued - pointing to a recent campaign by the CBI to encourage firms to take on younger workers and stating that CBI members were keen to employ young people and tackle the unemployment problem.
"This is a bigger issue than any other for business. I'm greatly encouraged by the passion you have for doing something about it, even amid today's economic turbulence," he said.
Mr Cridland went on to highlight the importance of reputation to all businesses. "I think it's now accepted that maximising short-term profits can put at risk the relationships that determine longer-term success," he said.
Read
John Cridland's speech (pdf)
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