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Ruskin Institute for Social Equity (RISE) logo

New report urges government to give business key role in reducing inequality

Intro

A new report ‘A different future  – How business can reduce inequality’ (pdf, 10.7mb) by the Ruskin Institute for Social Equity (RISE) at the University of West London was launched today at the House of Commons. The report is based on research with 50 leading businesses that have a total asset value of over £1.5 trillion, including Amazon, BP, Tesco and PWC, as well as representative organisations with over 400,000 members such as the British Chambers of Commerce and the Federation of Small Businesses.

Main body

The report, supported by the Co-Operative Group, argues that inequality is too big a problem for the public and charitable sector to tackle alone and that business must be part of a new, whole society approach to the challenge.  

It includes innovative examples of how businesses are already working to support local communities through charitable foundations, enabling social mobility via targeted recruitment of those outside the labour market and helping regenerate low-income areas. The report’s recommendations for the new Labour government include: 

 

  • Make businesses’ role in reducing inequality central to both its Growth and Opportunity 
  • Missions – growth must be inclusive and opportunity has to include employers.  
  • Producing a new Business and Social Purpose strategy - businesses were asking for leadership from government and a framework within which they can act to combat inequality. 
  • Establish a Business and Social Purpose Commission – the commission would enable government to drive forward the new strategy and support businesses to reduce inequality.  
  • Embed priorities and activities related to the social purposes of business in Local Growth Plans – these plans show how businesses can help attack place based inequality. 
  • Making all Growth and Skills Levy paying businesses invest 0.5% of profit in social purpose activities - this would allow commitment to be clearly benchmarked embedding business in a new whole society approach to tackling inequality.  

 

Paul Gerrard, Campaigns, Public Affairs & Board Secretariat Director at Co-op, said: 

With an increasing emphasis on addressing inequality as a society, the findings of this report demonstrate the pivotal role businesses have to play.

As an organisation, Co-op recognises these responsibilities and has a series of initiatives actively in place as part of a dedicated Social Mobility Plan. Earlier this year, we became the first UK retailer to publish a socioeconomic pay gap report and included as part of this was an ask of government to make socioeconomic background the 10th protected characteristic under the 2010 Equality Act.

Our Co-op plan and this report clearly identifies practical ways for the government to develop long-term approaches towards addressing inequality. We encourage businesses, wider society and the government to take collective action now to elevate socio-economic diversity, ensuring everyone has the capacity to succeed, no matter their background."

Jim Mcmahon MP, chair of the Co-Op Parliamentary Party, said: 

At the Co-Op Party, our ambition to see the co-operative sector double in size is reliant on businesses, but it is also reliant on mutuals working together to achieve this goal. It is, therefore, imperative that we address inequality and the issues facing everyday people to be able to unlock this potential and boost prosperity in local communities.  

As the Chair of the Co-Operative Party, I welcome the important recommendations of this report and hope it shall encourage greater collaboration between local businesses and national government to power economic and social growth across the country.” 

Professor Peter John CBE, Vice-Chancellor of the University of West London and Principal, Ruskin College, said: 

This report is the first produced by our new research centre - the Ruskin Institute for Social Equity (RISE). The centre is based at Ruskin College, Oxford which is part of the University of West London (UWL) groups. By focusing on new and innovative ways of addressing inequality whilst also offering practical policy recommendations to the new Labour government, it sums up well what RISE hopes to achieve over the next 5 years."

Ruskin Institute for Social Equity (RISE)

RISE produces policy-relevant research related to inequality in the UK with a particular focus on place-based inequality, education and skills, work/labour market and the role of business. It is based at Ruskin College, Oxford.

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