tag:theconversation.com,2011:/us/topics/cbi-10846/articlesCBI – The Conversation2023-08-14T15:49:38Ztag:theconversation.com,2011:article/2111342023-08-14T15:49:38Z2023-08-14T15:49:38ZHow subtle forms of sexism in financial services led to recent City scandals – what research shows<figure><img src="https://images.theconversation.com/files/542308/original/file-20230811-29-95huly.jpg?ixlib=rb-1.1.0&rect=78%2C39%2C6475%2C4343&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><span class="source">William Perugini/Shutterstock</span></span></figcaption></figure><p>When I first worked in the City of London, a few years out of university, a company-appointed “style consultant” suggested I would be taken more seriously as a female professional if I wore more make-up and exchanged my trousers for skirt suits. </p>
<p>At the time, I was under the naïve impression that workplace sexism was more or less a thing of the past. But I soon found out I was wrong and this conversation served as an early red flag. </p>
<p>That was 20 years ago. And while the financial and professional service industries have changed for the better, they may not have changed enough.</p>
<p>A <a href="https://www.theguardian.com/business/2023/jul/14/parliament-launches-new-inquiry-into-city-sexism-after-scandals">parliamentary committee</a> has been tasked with renewing an inquiry into sexism in the City of London following claims of sexual misconduct against <a href="https://www.ft.com/content/e5d14398-e866-44b3-8ecb-4e6371167c6d">hedge fund leader, Crispin Odey</a>, which he has denied. The Confederation of British Industry (CBI) has also recently launched an investigation into similar claims and has announced <a href="https://www.cbi.org.uk/media/lkto4nzv/a-renewed-cbi-prospectus.pdf">an overhaul</a> focused on company culture. </p>
<p>Scandals like these matter, of course, most obviously to the women directly affected by them. But such relatively high profile incidents may only represent the tip of the iceberg. There are many more subtle, underlying forms of sexism that pervade the Square Mile and beyond. These forms often lay the foundation for the larger scandals that erupt less frequently.</p>
<h2>A man’s world</h2>
<p>Men still dominate the most senior and highly paid positions in financial services. The 2021 <a href="https://www.gov.uk/government/publications/new-financial-women-in-finance-annual-review-march-2021">Women in Finance Charter Annual Review</a> reported 32% female representation in senior management on average among charter participants, which includes many top banking and finance firms. This is an increase of less than 1 percentage point each year since 2017.</p>
<p>Superior status and pay offer men more power and evidence shows that related abuses and sexual harassment are <a href="https://hbr.org/2017/11/training-programs-and-reporting-systems-wont-end-sexual-harassment-promoting-more-women-will">considerably more likely</a> as a result. Factors contributing to this situation are complex and rooted in history. The City has always been male-dominated. Men (typically white, often from middle-class backgrounds) and the versions of masculinity associated with this picture are seen as “the norm” in the financial services industry.</p>
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<a href="https://theconversation.com/class-and-the-city-of-london-my-decade-of-research-shows-why-elitism-is-endemic-and-top-firms-dont-really-care-199474">Class and the City of London: my decade of research shows why elitism is endemic and top firms don't really care</a>
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<p>As American academic <a href="https://www.jstor.org/stable/23416300">Karen Ashcraft</a> points out, in organisations and occupations made by and for men, it is hardly surprising that they continue to enjoy advantages and privileges; they are seen as the “natural fit”. This creates a catch-22: sexist cultures flourish where women are under-represented in positions of power, which is in turn partly due to sexist cultures. </p>
<p>Of course, women can and do compete successfully within these environments. But this often requires them to behave in ways more traditionally associated with men: demonstrating ambition above all else, “total commitment” and, most importantly perhaps, working very long hours. </p>
<p>One of the first academics to explore these tensions, <a href="https://www.wiley.com/en-gb/Capital+Culture%3A+Gender+at+Work+in+the+City-p-9780631205302">Linda McDowell</a>, who researches work and employment issues, described how the City runs on deeply embedded masculinised assumptions. She reported one female banker as making the following point in the early 1990s: “You have to be one of the boys to get on here.” </p>
<p>In 2020, one of my own research participants, a female financier with many years’ experience, made a similar point: </p>
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<p>Overt sexism is probably less common now but success is still based on more of a male model … linear careers, no breaks, long hours. </p>
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<p>Of course, suggesting this is problematic could seem sexist in itself by implying that men and women are, in some essential sense, different from each other. This notion was debunked by <a href="https://www.smithsonianmag.com/smithsonian-institution/powerful-complicated-legacy-betty-friedans-feminine-mystique-180976931/">second-wave feminists</a> who pointed out that most assumed differences between the sexes are the result of socially constructed gender stereotypes. </p>
<p>While often accused of a relatively exclusive form of feminism, centred on privileged white women, they argued this kind of thinking offers a useful justification for women’s lesser position. </p>
<p>On the other hand, feminist scholars and writers have underlined that <a href="https://www.penguin.co.uk/books/326943/the-whole-woman-by-greer-germaine/9780552774345">difference does matter when it comes to biology</a>, as the historical basis for women’s oppression. This is why challenging men’s dominant position requires substantive rather than superficial adjustments to the way society and its organisations are run. </p>
<h2>Strengthening diversity and inclusion initiatives</h2>
<p>Some related ideas have been enshrined in legislation in areas such as maternity, but diversity and inclusion agendas implemented by City firms since around the turn of this century are quite poorly equipped to address the challenge of making these substantive changes. </p>
<p><a href="https://bristoluniversitypress.co.uk/highly-discriminating">As my own research shows</a>, women’s under-representation at senior levels is often attributed to “unconscious bias” on the part of managers. Attention is directed at “de-biasing” individuals through training, with less focus on the underlying systems and structures, which tend to advantage men. </p>
<p>The move towards more flexible work does represent a more structural response. But, where a culture of long hours persists, adopting alternative working patterns might be frowned upon – “success” at work continues to depend on assimilation to dominant norms. </p>
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<img alt="Illustration of a line of people in suits holding clocks, handing them to a large hand at the top of the queue. City skyline in the background." src="https://images.theconversation.com/files/542304/original/file-20230811-25-htdofo.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/542304/original/file-20230811-25-htdofo.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=252&fit=crop&dpr=1 600w, https://images.theconversation.com/files/542304/original/file-20230811-25-htdofo.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=252&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/542304/original/file-20230811-25-htdofo.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=252&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/542304/original/file-20230811-25-htdofo.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=317&fit=crop&dpr=1 754w, https://images.theconversation.com/files/542304/original/file-20230811-25-htdofo.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=317&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/542304/original/file-20230811-25-htdofo.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=317&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
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<span class="caption">When employers encourage long working hours.</span>
<span class="attribution"><span class="source">FGC/Shutterstock</span></span>
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<p>The key problem here is that adjustments are made within existing systems rather than to the system itself. And, arguably, the most important system to address is our current model of capitalism. </p>
<p>The UK has adopted a relatively <a href="https://www.bbc.co.uk/news/business-50562518">extreme form</a> of capitalism, and financial and professional service firms have helped drive that through the <a href="https://www.theguardian.com/news/2018/oct/05/the-finance-curse-how-the-outsized-power-of-the-city-of-london-makes-britain-poorer">financialisation of our economy</a>. This aggressive pursuit of profit can be associated with individualistic, competitive and <a href="https://www.financialreporter.co.uk/reputation-of-toxic-workplace-culture-deters-half-of-finance-workers-from-accepting-">often quite toxic cultures</a>, which can be hostile to both women and men. </p>
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Read more:
<a href="https://theconversation.com/how-to-find-out-if-your-company-has-a-toxic-culture-and-if-it-supports-victims-of-workplace-bullying-204600">How to find out if your company has a toxic culture and if it supports victims of workplace bullying</a>
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<p>This is an unstable platform from which to address questions of sexism and discrimination. Instead, the latest parliamentary inquiry and City leaders should start by acknowledging that high-profile examples of poor behaviour are not necessarily an unexpected aberration from “business as usual”. More likely, they result from cultures where men (and particular versions of masculinity) remain dominant. </p>
<p>Actions in response should tackle the way certain groups or types of people and their way of working dominates financial services. But this will require a more radical approach that addresses the root causes of sexism and inequality, rather than tinkering around the edges of the problem.</p><img src="https://counter.theconversation.com/content/211134/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Louise Ashley does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Sexism and misogyny still rears its head in everyday interactions in the financial services industry, not just in the scandals that hit the headlines.Louise Ashley, Senior Lecturer in Sociology of Work, Queen Mary University of LondonLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/2070842023-06-06T17:17:42Z2023-06-06T17:17:42ZCBI: organisations that want to end workplace harassment must start by addressing power imbalances<p>Members of the Confederation of British Industry (CBI) – which calls itself “<a href="https://www.telegraph.co.uk/business/2023/05/31/cbi-toxic-culture-confidence-vote/">the voice of business</a>” in Britain – have <a href="https://news.sky.com/story/cbi-finalises-plans-for-crucial-vote-on-business-groups-future-12888990">voted on a revamp of the organisation</a> following allegations of misconduct, sexual harassment and rape in recent months. The City of London police is also <a href="https://www.standard.co.uk/news/uk/city-of-london-police-cbi-probe-women-sex-misconduct-tony-danker-b1073469.html">investigating the reported misconduct</a>.</p>
<p>The business lobby group that represents 190,000 companies, which fund its operations has seen <a href="https://www.bbc.co.uk/news/business-65345595">an outflow of big name members</a> including John Lewis, BMW, Virgin Media, O2, Aviva and Mastercard following these allegations. Both <a href="https://news.sky.com/story/cbi-scandal-chancellor-declares-there-is-no-point-engaging-with-lobby-group-12865084">the government</a> and <a href="https://www.theguardian.com/business/2023/apr/23/labour-cuts-ties-with-cbi-and-says-lobby-group-needs-root-and-branch-reform">the Labour party</a> have also severed ties with the organisation. This leaves its future representing business interests to politicians very much in doubt. </p>
<p>A <a href="https://www.bbc.co.uk/news/business-65804767">rival group from the British Chambers of Commerce</a> has already stepped forward to “design and drive the future of the British economy”. It has attracted members including BP and Heathrow Airport.</p>
<p>In a bid to keep its place, the CBI has put forward <a href="https://www.cbi.org.uk/media/lkto4nzv/a-renewed-cbi-prospectus.pdf">a plan to redeem itself</a> in the eyes of its members and the public. This includes a review of its company culture and a refresh of its board. The new plan received <a href="https://www.cbi.org.uk/media-centre/articles/cbi-secures-strong-mandate-from-membership-with-93-voting-in-favour/">97% of 371 votes cast</a> at a member meeting on Tuesday June 6. The CBI did not disclose how many organisations were eligible to vote and while it represents 190,000 firms, many of those are via trade associations.</p>
<p>But it comes after accusations of <a href="https://www.cbi.org.uk/media/m0pcest1/annex-to-open-letterapril23.pdf">brushing aside concerns and complaints</a>, and a failure to remove alleged offenders – never mind a failure to recruit staff with <a href="https://www.bbc.co.uk/news/business-65375311">appropriate attitudes and values</a> in the first place. </p>
<p>It’s extremely difficult to achieve a culture reboot without altering an organisation’s core beliefs and assumptions, and redesigning its governance power structures. Changing these difficult-to-measure elements takes more than the right words. It requires a fundamental overhaul of an organisation’s power structures.</p>
<h2>Sexual harassment at work</h2>
<p>Harassment happens when attitudes and belief systems uphold power differentials among people based on their gender or other attributes. These systems also help to deny, rationalise and <a href="https://theconversation.com/step-one-of-breaking-the-harassment-cycle-take-women-seriously-86636">ultimately prevent abuse from surfacing</a>. Institutions that reflect certain attitudes and beliefs about gender stereotypes enable these systems, while powerful organisational actors maintain them. </p>
<p>In the case of the CBI, for example, rather than sack alleged offenders, its leadership tried to find a resolution before the harassment complaints became public. Other major institutions such as the <a href="https://www.ft.com/content/5e5b8080-6352-4614-a1e8-66608270090d">World Health Organization</a>, <a href="https://www.bbc.co.uk/news/health-56670162">Oxfam</a> and the <a href="https://committees.parliament.uk/work/3401/sexual-exploitation-and-abuse-in-the-aid-sector-inquiry/news/101535/organisational-culture-and-sexual-harassment-in-the-workplace-examined/">aid sector more generally</a> have reacted in similar ways.</p>
<p>The #MeToo movement has shown that sexual harassment is systemic in many organisations. It is often deeply ingrained in company culture and characterised by <a href="https://hbr.org/2019/10/ending-harassment-culture">pay and power inequalities</a>. Research by the UK government’s Equalities Commission in 2020 found <a href="https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1002873/2021-07-12_Sexual_Harassment_Report_FINAL.pdf">72% of the UK population</a> has experienced at least one form of sexual harassment in their lifetime – with 43% experiencing this in the last 12 months.</p>
<p>Money and power are interconnected, so disparities such as the gender pay gap make sexual harassment more likely. But harassment also lowers the earning capacity of those who experience it by worsening their mental health, increasing absenteeism, and causing silent withdrawal. Employee harassment can cost companies an average of US$22,500 (£18,136) in productivity per harassed person, <a href="https://www.icrw.org/wp-content/uploads/2018/08/ICRW_SBHDonorBrief_v4_WebReady.pdf">according to some measures</a>. The actual costs to society are likely to be much higher.</p>
<h2>Organisational culture: reflecting values</h2>
<p>A recent emphasis on organisational culture reflects a shift throughout much of the western world of work from the management of skills to the management of values. Employees’ commitment to their organisations can enhance firms’ performance by fostering innovation and creativity. But the focus is often on visible rituals, marketing slogans and corporate image – the superficial elements that academic Edgar Schein called “<a href="https://sloanreview.mit.edu/article/coming-to-a-new-awareness-of-organizational-culture/?use_credit=fecf2c550171d3195c879d115440ae45">visible artifacts</a>”.</p>
<p>Values are much harder to address. They are often unconscious assumptions about the world. And so culture change programmes run the risk of leading to superficial compliance, rather than a real commitment to the profound shifts that organisations such as CBI really need. </p>
<p>Organisational culture is not a physical, measurable thing that can be visibly altered to enhance performance or win support. Instead, its a collective mental state that’s in flux and so <a href="https://www.jstor.org/stable/2392246">must be constantly renegotiated by the organisation</a>. In the 1980s, US academics Caren Siehl and Joanne Martin called organisational culture “the glue that holds members of an organisation together by <a href="https://www.gsb.stanford.edu/faculty-research/publications/role-symbolic-management-how-can-managers-effectively-transmit">encouraging them to share patterns of meaning</a>” or ways of understanding values, beliefs and how to behave.</p>
<p>Some of the (female) leaders of former CBI member companies understood this when speaking out about the need for CBI management to shift towards promoting lived values rather than “<a href="https://www.theguardian.com/business/2023/jun/03/women-in-business-on-cbi-future-culture-governance">corporate bullshit</a>”. Those holding the power in an organisation need to be willing and truly committed to examining their own assumptions and values to achieve this. So how can they do that?</p>
<h2>Invisible power structures</h2>
<p>Research on the effectiveness of boards shows corporate governance failures (even by companies with otherwise excellent governance records) happen when there is a <a href="https://www.jstor.org/stable/1837292">separation between ownership and control</a> of an organisation. </p>
<p>Independent, non-executive directors can provide much-needed checks and balances to ensure that executive members represent the organisation’s interests, not just their own. However, their impact will be minimal if they merely “rubber stamp” executive decisions. </p>
<p>A lack of diversity in terms of age, gender, expertise, experience or ethnicity on a board <a href="https://openlibrary.org/books/OL3513757M/Groupthink">can lead to groupthink</a> in such situations. This promotes unanimity and cohesion over accountability. Recruitment of certain types of men, <a href="https://onlinelibrary.wiley.com/doi/abs/10.1111/j.1468-0432.2012.00595.x">while excluding women</a>, and the development informal networks among board members can also reinforce poor decision making. </p>
<p>Finally, we often assume that board and leadership actions emerge from rational considerations, <a href="https://doi.org/10.1080/02699930903132496">ignoring the role of unconscious bias</a> and power dynamics that can better <a href="https://onlinelibrary.wiley.com/doi/10.1111/j.1467-8551.2010.00716.x">explain sexist and misogynistic culture</a>. </p>
<p>The CBI is governed by a president and an executive committee chaired by a director general, who also sits on the non-executive board. The president, due to leave in January 2024, has said he has <a href="https://www.ft.com/content/aecd2fb1-86f7-4d25-ac15-92c42dfa4096">lost the board’s confidence</a>. Ex-director general, Tony Danker, was sacked in the wake of the rape accusations <a href="https://www.bbc.co.uk/news/business-65313822">for an unrelated reason</a>. In a BBC interview he apologised for making some staff feel “very uncomfortable”, but said his name had been wrongly associated with claims that had allegedly occurred before he joined the CBI.</p>
<p>The <a href="https://www.cbi.org.uk/media-centre/articles/rain-newton-smith-named-as-cbi-director-general/">new director general, Rain Newton-Smith</a> has returned to the CBI following a stint at Barclays. Previously the lobby group’s chief economist, she has also worked for the Bank of England. Newton-Smith must now prove to members – and the wider public – that the CBI can overhaul its culture in order to survive. Ensuring these informal networks do not affect the organisation’s decision-making processes and accountability will be key to this.</p>
<p>The leadership of the CBI – and other organisations like it must consider neglected or silent points of view or risk failing to rebuild appropriate governance structures and a more equitable culture.</p><img src="https://counter.theconversation.com/content/207084/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Marianna Fotaki does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>To win back the trust of its members, policymakers and the public, the CBI must change its culture and governance. But this is a very difficult undertaking.Marianna Fotaki, Professor of Business Ethics, Warwick Business School, University of WarwickLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/2046002023-05-03T15:07:36Z2023-05-03T15:07:36ZHow to find out if your company has a toxic culture and if it supports victims of workplace bullying<figure><img src="https://images.theconversation.com/files/523902/original/file-20230502-757-34csoy.jpg?ixlib=rb-1.1.0&rect=0%2C67%2C4120%2C2541&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/stressed-businesspeople-sitting-front-two-colleagues-1403763239">Andrey_Popov/Shutterstock</a></span></figcaption></figure><p>When people speak out about poor treatment at work, it should be taken seriously. This has been happening a lot in the UK recently. </p>
<p>The <a href="https://www.met.police.uk/SysSiteAssets/media/downloads/met/about-us/baroness-casey-review/update-march-2023/baroness-casey-review-march-2023a.pdf">Baroness Casey Review</a> into the Metropolitan Police reported <a href="https://www.itv.com/watch/news/casey-report-into-met-police-five-shocking-key-findings/ybywhhz">widespread bullying and harassment</a>. Business lobby group the Confederation of British Industry has also announced a major overhaul after employees blew the whistle on its <a href="https://www.theguardian.com/business/2023/apr/03/revealed-new-claims-of-sexual-misconduct-and-toxic-culture-at-cbi">toxic culture</a>, following multiple reports of sexual misconduct. </p>
<p>And deputy prime minister Dominic Raab resigned after being <a href="https://news.sky.com/story/dominic-raab-resigns-the-key-findings-from-the-bullying-investigation-that-sealed-his-fate-12861896">investigated over reports of bullying behaviour</a> towards civil servants. </p>
<p>While attitudes to workplace behaviour have changed over the years, making sure employees feel well treated is important. <a href="https://doi.org/10.1080/02678373.2012.734709">Research has shown</a> that workplace bullying has an incredibly damaging impact on people’s mental and physical health, causing <a href="https://www.tandfonline.com/doi/full/10.1080/03069880410001723558">high levels of distress and even post-traumatic stress disorder</a> among some victims. </p>
<p>My colleagues and I wanted to determine the factors that limit the impact of workplace bullying on people’s wellbeing to establish how to help these victims. We reviewed existing research across 56 studies that looked at such factors as the personality traits of targets of bullying, the amount of social support they receive, and the “climate” or culture of their organisations.</p>
<p>It is often assumed that certain personality traits such as resilience or coping strategies like avoidance and confrontation can protect people from the ill effects of workplace bullying. But <a href="https://doi.org/10.1080/02678373.2023.2169968">we found that</a> the most helpful factors for victims are social support from colleagues and a workplace that prioritises employee wellbeing over job performance. </p>
<p>Other research shows that organisations with such priorities tend to <a href="https://doi.org/10.1080/1359432X.2017.1380626">do three things</a> to limit workplace bullying. Most simply, they make it clear through policies, training, and communications that bullying is not accepted within the organisation. </p>
<p>They also design jobs to reduce factors linked to conflict such as role conflict and role ambiguity. And they have clear policies and procedures in place to ensure that any conflicts are handled fairly and do not escalate into bullying. </p>
<p>Organisations that are serious about addressing bullying should therefore have a “no tolerance” approach, create fair procedures for conflict resolution, and reduce unhealthy job characteristics such as role conflict or lack of employee control over their daily working lives. As well as helping those targeted by bullying, <a href="https://doi.org/10.1080/1359432X.2017.1380626">there is evidence to show</a> that these kinds of policies can prevent new bullying cases from developing. </p>
<h2>Searching for signs of a toxic workplace</h2>
<p>Whether you’re thinking about taking a new job or want to make sure your company’s culture is up to scratch, this information could help you make a decision about your job. </p>
<p>To identify whether an organisation has a healthy working climate, think about whether it would prioritise your health over your performance. You can do this by looking at, for example, expectations around responding to work messages outside of working hours.</p>
<p>You could also find information on how the organisation responds – or plans to respond – to bullying complaints. Look for clues that a complaint will be taken seriously by reading the bullying and harassment policy, which is often online. </p>
<p>How will a bullying complaint will be managed? For example, is there a reasonable – or any – timeline set for handling such complaints?</p>
<p>Finally, look for evidence that senior leaders in the organisation take matters relating to employee wellbeing seriously and that they actively communicate this to staff. Unfortunately, organisations are unlikely to volunteer such details in an impartial way, but talking to current or former employees may provide a more objective picture, if not simply a different side to the story. </p>
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<img alt="People in smart casual clothing in a circle, shoulders down, hands gesturing." src="https://images.theconversation.com/files/523903/original/file-20230502-4095-j5x0c8.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/523903/original/file-20230502-4095-j5x0c8.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/523903/original/file-20230502-4095-j5x0c8.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/523903/original/file-20230502-4095-j5x0c8.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/523903/original/file-20230502-4095-j5x0c8.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/523903/original/file-20230502-4095-j5x0c8.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/523903/original/file-20230502-4095-j5x0c8.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Building a positive working culture.</span>
<span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/sharing-ideas-close-view-diverse-people-1849638520">fizkes/Shutterstock</a></span>
</figcaption>
</figure>
<p>You may find that instances of unfair working practices have been called out <a href="https://news.stv.tv/scotland/staff-experienced-toxic-work-culture-at-scotlands-national-contact-centre-during-covid-pandemic">in the news</a> or on social media. Look at <a href="https://www.theguardian.com/business/2021/jun/10/brewdog-staff-craft-beer-firm-letter">how the organisation handled this at the time</a> and ask them – and other employees – about how the responses or resulting initiatives have been sustained over time.</p>
<p>If a company’s toxic work culture has been outed already, it must now make an effort to turn things around. These high-profile cases may also persuade other organisations of the importance of preventing bullying before it occurs – and of supporting those who raise concerns about workplace culture.</p><img src="https://counter.theconversation.com/content/204600/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>I am a joint recipient of a British Academy Small Grant on workplace cyberbullying and currently receive funding from Malmo University to undertake research on work-related cyberaggression. </span></em></p>Companies can curb bullying bosses and support victims, but will yours?Samuel Farley, Senior Lecturer in Work Psychology, University of SheffieldLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1145182019-03-29T14:09:06Z2019-03-29T14:09:06ZMore than a million UK small businesses see Brexit as major obstacle to success<figure><img src="https://images.theconversation.com/files/266534/original/file-20190329-70999-1y7rlhs.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Alarm call. </span> <span class="attribution"><a class="source" href="https://www.shutterstock.com/image-vector/illustration-clock-brexit-great-britain-leaving-1181478619">Sebestyen Balint</a></span></figcaption></figure><p>When it comes to how Brexit will affect business, much of the debate in the UK has focused on large firms, particularly international ones such as <a href="https://www.theguardian.com/commentisfree/2019/feb/19/the-guardian-view-honda-closure-of-course-its-partly-about-brexit">Honda</a> and <a href="https://www.bbc.co.uk/news/business-47115753">Nissan</a>. The CBI, which mainly represents big business, has been tirelessly <a href="https://www.theguardian.com/business/2019/mar/25/city-optimism-falling-at-highest-rate-since-financial-crisis-brexit-cbi">warning</a> of the economic <a href="https://uk.reuters.com/article/uk-britain-economy-retail/uk-retail-sales-fall-most-in-17-months-as-brexit-nears-cbi-idUKKCN1R815R">dangers</a> of a no deal in the coming weeks. </p>
<p>The likely impact on small and medium-sized enterprises (SMEs) has received much less attention by comparison. We have published a <a href="https://www.tandfonline.com/doi/full/10.1080/00343404.2019.1597267">new study</a> in the journal Regional Studies that looks at this in detail. We found that well over one million UK SMEs, around a quarter of the total, were concerned about how Brexit would affect the success of their business. We also examined how Brexit uncertainty varies according to the size and location of companies and their business orientation.</p>
<figure class="align-right zoomable">
<a href="https://images.theconversation.com/files/266538/original/file-20190329-71021-1xe0twb.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/266538/original/file-20190329-71021-1xe0twb.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=237&fit=clip" srcset="https://images.theconversation.com/files/266538/original/file-20190329-71021-1xe0twb.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=653&fit=crop&dpr=1 600w, https://images.theconversation.com/files/266538/original/file-20190329-71021-1xe0twb.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=653&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/266538/original/file-20190329-71021-1xe0twb.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=653&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/266538/original/file-20190329-71021-1xe0twb.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=821&fit=crop&dpr=1 754w, https://images.theconversation.com/files/266538/original/file-20190329-71021-1xe0twb.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=821&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/266538/original/file-20190329-71021-1xe0twb.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=821&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
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<span class="caption">The life of pie.</span>
<span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/meeting-tax-lawyer-business-man-company-1122992849">phushutter</a></span>
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<p>SMEs represent a <a href="https://www.nesta.org.uk/report/the-state-of-small-business-putting-uk-entrepreneurs-on-the-map/">core part</a> of the UK economy, accounting for 99% of all UK firms and 60% of total private sector employment. They are crucial for innovation and productivity growth and have disproportionately driven job creation since 2010. They <a href="https://link.springer.com/article/10.1007/s11187-014-9614-0">are also</a> particularly affected by institutional and political uncertainty and <a href="https://theconversation.com/brexits-impact-on-small-businesses-the-experts-may-be-spot-on-after-all-90561">less resilient</a> when it comes to unforeseen events such as Brexit.</p>
<p>To find out what they thought about Brexit, we investigated a large survey of 15,867 SMEs that had been compiled by the UK Department for Business, Energy and Industrial Strategy in 2016 and 2017. The 25% who viewed Brexit as a major obstacle to their success – some 1.25m businesses – was a significant increase on the 16% who were of this view immediately after the referendum in 2016. </p>
<p>These fears will almost certainly have escalated as the UK moves ever closer to eventual exit from the EU: a recent <a href="https://specialistbanking.co.uk/article-desc-6741_30%20per%20cent%20of%20SMEs%20cite%20Brexit%20impact%20as%20biggest%20concern%20for%202019">survey</a> of SMEs by the Cooperative Bank, for instance, found that Brexit’s effect on the economy was their top concern for 2019, with 30% drawing attention to it. Meanwhile, <a href="https://www.heraldscotland.com/business_hq/17536101.firms-split-by-size-on-the-impact-that-brexit-will-have/">a new survey</a> has found that 57% of Scottish SMEs believe Brexit will be negative for their business, compared to only 41% of the managers of bigger companies. </p>
<h2>Worriers in chief</h2>
<p>Our study found that larger SMEs that were internationally oriented and/or innovators, such as tech firms, were particularly concerned about Brexit – as were those located in major cities. <a href="https://link.springer.com/article/10.1007/s11187-014-9584-2">Worryingly</a>, the firms most concerned by Brexit – these innovators and exporters – are the same SMEs deemed most important for generating productivity growth.</p>
<p>We found that the single largest factor concerning SMEs was uncertainty regarding future regulatory change, with 74% citing it. Smaller businesses were particularly worried, as were exporters. Other major concerns included increased import costs (52%) and uncertainty regarding future access to EU markets (59%). </p>
<p>Around two-thirds of SMEs had scaled back plans for future capital investment to 2020, while as many as 77% were less focused on increasing export sales over the same period. The study also found that SMEs’ concerns about Brexit were considerably higher in devolved areas like Scotland and Northern Ireland. This is despite the fact that these jurisdictions are best equipped to deal with any negative ramifications through the likes of their enterprise and export agencies and, at least in the case of Scotland, devolved government. </p>
<p>With the <a href="https://theconversation.com/brexit-q-a-theresa-may-offers-to-stand-down-as-british-prime-minister-but-theres-a-catch-114414">uncertainty</a> around Brexit now arguably greater than at any time since the 2016 referendum, the findings in our study suggest that SMEs will potentially be the firms hardest hit by Brexit. </p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/266537/original/file-20190329-70989-2e4k7d.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/266537/original/file-20190329-70989-2e4k7d.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/266537/original/file-20190329-70989-2e4k7d.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/266537/original/file-20190329-70989-2e4k7d.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/266537/original/file-20190329-70989-2e4k7d.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/266537/original/file-20190329-70989-2e4k7d.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/266537/original/file-20190329-70989-2e4k7d.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/266537/original/file-20190329-70989-2e4k7d.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Nope.</span>
<span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/london-uk-october-20th-2018-british-1210610329">nrqemi</a></span>
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</figure>
<p>The UK government has done little or nothing to ease these uncertainties. There are several lessons here that it could learn from Scotland. The Scottish government is <a href="https://news.gov.scot/news/preparing-business-for-brexit">offering grants</a> of £4,000 to helps SMEs to export, for instance. It has also set up a <a href="https://www.insider.co.uk/news/100-scottish-enterprise-staff-focused-14117333">national helpline</a>. </p>
<p>In the absence of better support, we are seeing the private sector taking steps to support SMEs: Barclays Bank, for instance, has <a href="https://www.bmmagazine.co.uk/news/barclays-unveils-14bn-fund-to-help-uk-smes-with-brexit/">just announced</a> a new £14 billion lending fund for SMEs to help cope with the uncertainty, and has been holding Brexit clinics around the country. </p>
<p>Constitutional paralysis or not, the UK government needs to recognise that SMEs are the backbone of the economy and crucial for future productivty growth. It must act now to alleviate the anxieties of these businesses so that whatever form of Brexit comes to pass, they are as well placed as possible to navigate the choppy waters ahead.</p><img src="https://counter.theconversation.com/content/114518/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>The authors do not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.</span></em></p>While everyone frets about the fate of big corporates, the little ones are growing agitated.Ross Brown, Reader in Entrepreneurship and Small Business Finance, University of St AndrewsJohn O.S. Wilson, Professor of Banking & Finance, University of St AndrewsLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/608972016-06-14T12:59:28Z2016-06-14T12:59:28ZFact Check: do 89% of businesses really support Remain?<figure><img src="https://images.theconversation.com/files/126181/original/image-20160610-29219-1v16oq9.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Ready for my close up.</span> <span class="attribution"><a class="source" href="http://www.shutterstock.com/cat.mhtml?lang=en&language=en&ref_site=photo&search_source=search_form&version=llv1&anyorall=all&safesearch=1&use_local_boost=1&autocomplete_id=&searchterm=business%20attitudes&show_color_wheel=1&orient=&commercial_ok=&media_type=images&search_cat=&searchtermx=&photographer_name=&people_gender=&people_age=&people_ethnicity=&people_number=&color=&page=1&inline=216365722">Irina Braga</a></span></figcaption></figure><blockquote>
<p><em>Independent poll: 89% of businesses back staying in Europe.</em></p>
</blockquote>
<p><strong>Britain Stronger in Europe <a href="http://www.strongerin.co.uk/get_the_facts#5V2t8bz1mzTk24zu.97">campaign claim</a></strong></p>
<p>Immigration and the economy have taken centre stage in the British EU referendum. The future economic performance of the UK in particular – its growth, job and wealth creation prospects – depends on how business fares. This helps explain why business attitudes to the referendum have regularly been published in the run-up. </p>
<p>The Britain Stronger in Europe <a href="http://www.strongerin.co.uk/get_the_facts#vSBLftmwq0i1Jt5E.97">campaign relies on</a> one such survey in its campaign literature. Conducted by the Council of British Chambers of Commerce in Europe (COBCOE), it <a href="http://www.cobcoe.eu/files/cobcoe-europe-member-poll-results-fa-aLS79E.pdf">found that</a> 89% of member businesses were opposed to a UK exit from the EU, while only 7% were in favour. The claim is <a href="http://www.libdemvoice.org/what-our-liberal-democrat-leaders-are-saying-about-the-eu-referendum-50868.html">regularly repeated</a> by voices on the Remain side as evidence of the economic damage that a Brexit would cause. So is it accurate?</p>
<p>In fact, it turns out that the survey does not include any UK businesses. Instead, it reflects the views of the members of a total of 38 national chambers of commerce in countries ranging from Austria to Israel to Ukraine. This appears to make it quite a strange survey for Remain to be relying on. </p>
<p>When you look at other business surveys, several things stand out. They too tend to back Remain – if a little less decisively – and the balance of opinion is much tighter with smaller companies than larger ones. The CBI’s <a href="http://news.cbi.org.uk/news/cbi-to-make-economic-case-to-remain-in-eu-after-reaffirming-strong-member-mandate/">survey in March</a> of nearly 800 UK companies found 84% backing Remain among large companies and 71% among smaller ones. </p>
<p>The British Chambers of Commerce <a href="http://www.britishchambers.org.uk/policy-maker/policy-reports-and-publications/bcc-eu-survey-business-vote-tightens-as-referendum-campaign-heads-to-the-finish-line.html">survey</a> of 2,200 members from May found 54% backed Remain compared to 37% against. The smallest businesses were more narrowly in favour, however. </p>
<p>A <a href="https://www.theguardian.com/business/2016/jun/02/uk-small-businesses-are-evenly-split-on-brexit-poll-says">TNS survey</a> in June of more than 500 small and medium-sized companies found 38% backed Remain and 37% Leave. Yet a new <a href="https://theconversation.com/british-fishermen-want-out-of-the-eu-heres-why-60803">academic survey</a> of UK skippers and boat owners in the fishing industry <a href="https://www.pressandjournal.co.uk/fp/news/uk/942753/skippers-want-out-of-eu-according-to-aberdeen-university-research/">found that</a> 92% favour a Brexit. This all raises interesting questions about the differences between various businesses. </p>
<h2>Scottish echoes</h2>
<p>During the <a href="http://www.bbc.co.uk/news/events/scotland-decides/results">Scottish independence referendum</a> of 2014, I conducted <a href="http://www.business-school.ed.ac.uk/blogs/news/wp-content/uploads/sites/25/2016/01/Working-Paper-Referendum-CEO-Guide-Kelly-and-MacKay-08-January-2015.pdf">extensive research</a> into business attitudes. Despite close to 50 referendums on various issues across Europe since 2011 alone, there has been very little systematic research of this kind into business opinion. </p>
<p>I found business attitudes to an independence referendum are generally driven by a small number of variables: where the business is headquartered; the ownership structure; the jurisdiction where the balance of its trade takes place; and the most advantageous place for foreign direct investment by multinationals. Having applied the same framework to the EU referendum, it turns out the same variables apply. </p>
<p>Business leaders of UK-headquartered listed companies, or multinationals with subsidiary headquarters in the UK with significant trade in the EU, have been the most perplexed by a vote to leave and most willing to relocate business investment elsewhere. That is why 36 heads of FTSE 100 companies <a href="http://www.bbc.co.uk/news/uk-politics-eu-referendum-35636838">signed an open letter</a> arguing for a Remain vote, and 95% of members of the British American Business Association <a href="http://www.babc.org/public/docs/BATI2016_Guide_WEB.pdf">oppose</a> a Brexit. </p>
<p>Heads of privately-owned companies with comparable EU trading interests also oppose a Brexit, though without the same shareholder pressures they tend to be more willing to soldier on with UK investments if it comes to pass. <a href="https://www.theguardian.com/business/2016/mar/18/richard-branson-says-eu-exit-would-be-saddest-day-for-britain-european-union-virgin">Think about</a> Sir Richard Branson and the Virgin group, for instance. </p>
<p>People who run private companies whose trade is more global are either ambivalent or in favour of leaving – if they can identify a specific benefit for their business. Lord Bamford, the chairman of building group JCB who <a href="http://www.bbc.co.uk/news/uk-36485985">came out</a> in favour of Leave recently, is a prime example of the latter. Companies of this sort are a minority, however. </p>
<p>Business leaders most in favour of Leave are the ones who mainly trade at home and see a cost advantage or a greater ability to influence the political process after separation. Tim Martin of pub chain Wetherspoons <a href="http://uk.businessinsider.com/jd-wetherspoon-interview-tim-martin-eu-referendum-democracy-brexit-imf-bee-mats-2016-6">fits into</a> this category. </p>
<h2>Verdict</h2>
<p>It appears misleading for the Remain side to be using the COBCOE survey, though business surveys do generally lean towards the same point of view. Bigger businesses are pro-Remain – unless their sales are primarily either global or UK-focused – while small and medium-sized businesses trading predominantly at home take a different view. </p>
<p>Sectors with a strong view one way or the other are driven by their own motivations – for instance UK fishermen tend to feel unfairly constrained by fishing quotas allocated by the <a href="http://ec.europa.eu/fisheries/cfp/index_en.htm">European Common Fisheries Policy</a>. </p>
<p>On the whole, however, the business case for Brexit doesn’t appear to add up. </p>
<h2>Review</h2>
<p><em>Michael Danson, professor of enterprise policy, Heriot-Watt University</em></p>
<p>This piece has identified that, as with many of the claims made by all sides in the EU referendum, Britain Stronger in Europe has been rather fast and loose with presenting COBCOE’s statistics. Nevertheless it is believable that firms successfully doing business internationally would support the status quo, while those struggling at home may have different concerns or else reflect <a href="http://whatukthinks.org/eu/opinion-polls/poll-of-polls/">the divisions</a> within the country as a whole.</p>
<figure class="align-right zoomable">
<a href="https://images.theconversation.com/files/126528/original/image-20160614-22386-6dblzw.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/126528/original/image-20160614-22386-6dblzw.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=237&fit=clip" srcset="https://images.theconversation.com/files/126528/original/image-20160614-22386-6dblzw.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=566&fit=crop&dpr=1 600w, https://images.theconversation.com/files/126528/original/image-20160614-22386-6dblzw.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=566&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/126528/original/image-20160614-22386-6dblzw.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=566&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/126528/original/image-20160614-22386-6dblzw.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=712&fit=crop&dpr=1 754w, https://images.theconversation.com/files/126528/original/image-20160614-22386-6dblzw.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=712&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/126528/original/image-20160614-22386-6dblzw.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=712&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Good for who?</span>
<span class="attribution"><a class="source" href="http://www.shutterstock.com/cat.mhtml?lang=en&language=en&ref_site=photo&search_source=search_form&version=llv1&anyorall=all&safesearch=1&use_local_boost=1&autocomplete_id=&search_tracking_id=EPT7E9qi4jCtGcbpzDvHBQ&searchterm=business%20opinion&show_color_wheel=1&orient=&commercial_ok=&media_type=images&search_cat=&searchtermx=&photographer_name=&people_gender=&people_age=&people_ethnicity=&people_number=&color=&page=1&inline=284750732">Mad Dog</a></span>
</figcaption>
</figure>
<p>Some questions in business surveys are poorly posed or ambiguous – does “good for business” mean for my firm, for trade, or for the economy as a whole? Are these mutually compatible, or is what is good for a multinational contrary to the needs of smaller companies? As with the Scottish referendum, companies’ opinions seem dominated by self-interest, which never necessarily means in all our interests. </p>
<p>Apart from misleading us over business opinion with the COBCOE survey, Britain Stronger in Europe <a href="http://www.strongerin.co.uk/get_the_facts#kQ5lUsDTLMQvRdir.97">also promotes</a> many campaign slides that play up the worst case scenario in the short-term forecasts of banks, treasuries and international bodies – all of which undermine the objectivity of its message. These contrast different futures under the same free-market regime rather than presenting an alternative inclusive EU agenda that could lead to a different future for the continent. </p>
<p><em>This article originally said that the BCC’s survey had micro-businesses backing Brexit. This has now been corrected.</em></p><img src="https://counter.theconversation.com/content/60897/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Brad MacKay receives funding from the Economic and Social Research Council in the Future of the UK and Scotland programme, but the views expressed here are entirely his own. </span></em></p><p class="fine-print"><em><span>Mike Danson is on the board of the Jimmy Reid Foundation, but the views in this piece are entirely his own.</span></em></p>The Remain campaign cites this survey as proof of the economic benefits of staying in the EU. Here’s the story behind the numbers.Brad MacKay, Professor in Strategic Management, University of St AndrewsLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/435852015-06-23T12:31:09Z2015-06-23T12:31:09ZThe divide is growing between what employers and ministers want students to study<p>From this September, all pupils at secondary school will have to study English, a language, maths, science and history or geography at GCSE. This is the <a href="https://www.gov.uk/government/publications/english-baccalaureate-ebacc">English Baccalaureate, or Ebacc</a>, which education minister <a href="https://www.gov.uk/government/speeches/preparing-children-for-a-successful-future-through-the-ebacc">Nicky Morgan has insisted</a> are core academic subjects that should be taken by all children. </p>
<p>The director of the Confederation of British Industry (CBI), John Cridland, <a href="http://news.cbi.org.uk/news/john-cridland-festival-of-education-speech/">does not approve</a>: he has called for GCSEs to be phased out and replaced with an exam system that gives equal value to vocational subjects.</p>
<p>In defence of the government reform, it should enable young people to have a fairly broad education up to the age of 16 that does not restrict them in their future choices. It is a big change from the past when students could take a wide range of “vocational” subjects at GCSE. These were not regarded as useful for anyone except schools that wanted to boost their headline results by getting weaker students to take exams in subjects that were easier to pass. This was criticised strongly in the <a href="https://www.gov.uk/government/publications/review-of-vocational-education-the-wolf-report">Wolf report in 2011</a> about vocational education and has since been changed.</p>
<p>The issue is that good general education (call it “academic” if you like) is a pre-requisite for popular courses in vocational education later on. For example, students cannot walk into a course in forensic science in a further education college without good grades in their GCSE, any more than they can be accepted on to an A-level programme. Students without an adequate chunk of general education are ill-prepared to undertake more specific vocational education, which is demanding and builds on their knowledge. </p>
<h2>Don’t specialise too soon</h2>
<p>A more fundamental issue is what type of educational instruction we (as a society) think it appropriate to offer students up to age 16. The requirements of the EBacc seem like a minimum for a developed country – and not unlike those in many others. They will incorporate some mastery of basic skills like literacy, numeracy and critical thinking that are valuable in the labour market and directly relevant to business. </p>
<p>A problem with including lots of vocational subjects as options at this age is not because vocational subjects are a poor relation to so-called “academic” subjects, but because, by definition, they are more specific and directly related to particular occupations. There’s a time and place for that – and several academic studies caution against specialising too young, such as <a href="http://hanushek.stanford.edu/sites/default/files/publications/Hanushek%2BWoessmann%202006%20EJ%20116%28510%29.pdf">international work</a> by educational economists Eric Hanushek and Ludger Woessmann. </p>
<p>It is not true that “academic” subjects are systematically valued more highly than “vocational” subjects if one reflects on what the word “vocational” actually means – a subject geared towards work in a particular occupation. Medicine, law and engineering are subjects with huge earnings potential. The divide is rather between the “A-level to higher education” route and everything else. The non-A-levels routes are many, varied and often poorly understood. </p>
<h2>Standing up for post-19 options</h2>
<p>There is indeed a need to constructively engage employers and their representatives in changing the education system in the next few years. However, the need is for them to engage with the post-16 and “adult education” debate. The post-19 education budget <a href="https://theconversation.com/adult-education-needs-an-urgent-and-radical-rethink-39391">has been slashed</a>, and yet very little commented upon by those outside the further education sector. </p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/86084/original/image-20150623-19386-omsmee.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/86084/original/image-20150623-19386-omsmee.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/86084/original/image-20150623-19386-omsmee.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/86084/original/image-20150623-19386-omsmee.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/86084/original/image-20150623-19386-omsmee.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/86084/original/image-20150623-19386-omsmee.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/86084/original/image-20150623-19386-omsmee.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Keep other options open.</span>
<span class="attribution"><span class="source">Engineer and apprentice via SpeedKingz/www.shutterstock.com</span></span>
</figcaption>
</figure>
<p>There is a government commitment to <a href="https://www.gov.uk/government/news/government-kick-starts-plans-to-reach-3-million-apprenticeships">three million new apprenticeships</a> over the next parliament. Yet up to now, <a href="https://theconversation.com/fact-check-has-the-coalition-really-created-2-1m-apprenticeships-38815">most new apprenticeships</a> have been created for older workers that have been in their firm for some time (and not young students straight out of school or college).</p>
<p>There are <a href="http://www.theguardian.com/sustainable-business/2015/jun/22/skills-gap-small-business-qualified-staff">constant demands</a> by employers for a more skilled workforce, yet <a href="https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/303141/evidence-report-72-training-in-recession.pdf">some have reduced</a> training themselves over the past few years and there isn’t much evidence that very many of them work directly with further education colleges or universities to improve what’s on offer. </p>
<p>There may well be barriers to the involvement of small- and medium-sized enterprises (most British firms) to get involved in education. It would be good to hear the CBI speak up about those barriers and more generally to draw attention to the educators outside schools and universities. If “vocational education” is to be valued as the equal of “academic education”, then further education providers should not be overlooked.</p><img src="https://counter.theconversation.com/content/43585/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Sandra McNally is director of the independent Centre for Vocational Education Research, LSE, a research centre funded by the Department for Business, Innovation & Skills. She also director of the education and skills programme at the Centre for Economic Performance at LSE, which is funded by the Economic and Social Research Council. </span></em></p>From September, all children will have to study five core academic subjects at GCSE. But the CBI thinks the exams should be phased out.Sandra McNally, Professor in the School of Economics, University of SurreyLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/274682014-06-05T14:49:35Z2014-06-05T14:49:35ZThe CBI is unfit to represent UK business – why is Nigel Farage the only leader to say so?<blockquote>
<p>The CBI is big business, it is corporatism, it is effectively an arm of government </p>
</blockquote>
<p><a href="http://youtu.be/UATMqJGYCrk?t=1m35s">So said Ukip leader Nigel Farage</a> when interviewed by the BBC on what businesses feel about Europe. Farage may be wilfully mistaken about many things but here he seems to have hit on an inconvenient truth: the recent actions of the CBI demonstrate how our political leaders are in lock step with corporate interests.</p>
<p>The CBI – Confederation of British Industry – is the dominant campaigning and lobbying organisation for UK business. Its <a href="http://www.cbi.org.uk/about-the-cbi/what-we-do/">stated aim</a> is to “keep business interests at the heart of policy in Westminster”. It prides itself on its “political access and breadth of membership”. </p>
<p>The CBI is a not a model of corporate transparency. Secretive and shadowy, it reveals no details of its members. It claims to “speak for companies of every size” but provides no information about the numbers of different sizes and types of businesses or their spread across the UK. Its <a href="http://www.cbi.org.uk/events/cbi-events-calendar-2013/">AGM is today</a> but it is highly unlikely that questions will be raised about the conduct of its leadership or the effectiveness of its governance. </p>
<p>There is no equivalent mystery about why Nigel Farage has hit out against the CBI. The CBI is broadly <a href="http://www.bbc.co.uk/news/business-24773179">pro-EU</a> whereas Ukip wants the UK to withdraw from Europe and is demanding an immediate referendum on the issue. The name calling – the CBI is “corporatist” and so on – must be interpreted in the context of Ukip’s efforts to discredit all those seeking to postpone a referendum pending negotiations. </p>
<p>Farage’s strident appeal is populist. He gleefully knocks anything that annoys the beleaguered “man on the Clapham omnibus” who feels that major political parties are neglectful of his identifications and concerns. Exploiting and fuelling this alienation, Farage presents “big business” as the equivalent of the European Commission. Any institution that curbs individualism by regulating it is self-evidently an “arm of government”. As Farage takes pot shots at the establishment, including the CBI, a frisson of resentful, sadistic pleasure is rewarded by admiration and popular support. </p>
<p>So, is Farage entirely wrong about the CBI? Unfortunately not. To grasp why not, it is necessary to consider another referendum – on Scottish independence. On this issue, the CBI has indeed been acting as an arm of the present government by giving its backing to the no campaign. By failing to ballot its members, or even engage in meaningful consultation with its principal stakeholders, it has been acting like big business. CBI-style “corporatism” is not harnessed to government but, rather, to a pro-Unionist section of its membership. The debacle over Scottish independence should set alarm bells ringing about CBI governance and its leadership of the UK business community.</p>
<p>The CBI eventually conceded it had taken an overtly political stand on Scottish independence when it registered with the Electoral Commission as a no campaign supporter, back in April. Such partisanship flies in the face of many of its members – in both private and public sectors – who have declared their neutrality or support for the yes campaign. Placed in an impossible position, these members staged a mass walk out from the CBI. </p>
<p>Among them was the BBC which, being obliged to maintain its image of neutrality, was “outed” as a member of the CBI and suspended its membership. The revelation the national broadcaster was a member of a pro-business campaigning organisation rightly <a href="http://tommyballgovan.blogspot.co.uk/2014/04/bbc-crisis-deepens-over-cbi-cover-up.html">stoked doubts about BBC impartiality</a> and the justification for using its licence fee to pay the CBI annual membership of tens of thousands of pounds over many years.</p>
<p>Hoping to shrug off these embarrassing revelations, resignations, suspensions and their ramifications, the CBI Director-General has refused to explain how the organisation consulted its members over its support of the no campaign or how its mandate was secured. The CBI also appears to have contravened the Companies Act of 2006 which requires bodies with a Royal Charter to <a href="http://www.businessforscotland.co.uk/business-for-scotland-challenges-the-cbi-to-come-clean/">seek authorisation under Section 366</a> before incurring political expenditures. </p>
<p>In a farcical move to extract itself from a toxic mix of legal morass, membership flight and public relations disaster, the CBI sought to rescind its Electoral Commission registration by using the pretext that its application had not been approved by an authorised signatory, thereby casting further doubt upon the competence and credibility of its leadership. </p>
<p>So, Nigel Farage is at least partially right, but for the wrong reasons. On the Scottish independence issue, the CBI has not hesitated to operate politically as “an arm of government” by supporting the no campaign. In failing to consult, let alone ballot, its members, it has acted like a big business bully. But instead of manipulating populist sentiment by lashing out at the CBI for being pro-EU, critics should target flaws in its governance and the arrogance of its leadership. </p>
<p>In its most recent <a href="http://www.cbi.org.uk/media/2757621/annual_report_2014_web2.pdf">annual report</a>, corporate governance is described as “what the board of a company does and how it sets the values of the company”. What, then, are the values that can be discerned from the CBI’s handling of the Scottish independence issue? High on the list must be secrecy, impetuousness, cynicism and disregard of its Royal Charter. To these may be added arrogance as, contrary to the UK’s <a href="https://www.frc.org.uk/Our-Work/Codes-Standards/Corporate-governance/UK-Corporate-Governance-Code.aspx">corporate governance code</a>, there is “no formal evaluation process of the Board” whose responsibility it is to decide on issues of governance. Why not? Because as a consequence of “the experience of the President and the CBI board … no formal process is deemed necessary”. </p>
<p>So speaks the self-satisfied “voice of UK businesses”. It is a voice echoed in the complicit smugness of the political classes towards self-serving corporate regulation that is witheringly but indiscriminately attacked by Farage. </p><img src="https://counter.theconversation.com/content/27468/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Hugh Willmott does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>The CBI is big business, it is corporatism, it is effectively an arm of government So said Ukip leader Nigel Farage when interviewed by the BBC on what businesses feel about Europe. Farage may be wilfully…Hugh Willmott, Professor of Organisational Studies, Cardiff UniversityLicensed as Creative Commons – attribution, no derivatives.