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Should businesses focus on new jobs or profits?
General News |
03/02/2012
The majority of British people believe the first priority of UK businesses should be to provide employment for local people, a study has revealed.
In a study conducted by the British Chambers of Commerce (BCC), 72 per cent of repsondents said the first duty of companies is to create and sustain jobs.
Just 29 per cent of respondents thought company leaders should focus on protecting the interests of the owners and shareholders.
Some 79 per cent of repsondents said creating new jobs should be a high priority for UK firms, compared to generating a profit (43 per cent).
According to the BCC, these findings highlight tension between different business objectives, with the public clearly less favourable toward corporate profits than to provision of employment.
But as John Longworth, director general of the BCC, explained, businesses cannot generate employment, pay more in tax, or expand into new markets without profits.
He said it is "concerning" that many members of the public seem to think that making money should not be one of business's top priorities.
"Profit and success are an essential part of enterprise and our future prospects," Mr Longworth stated.
But even with hefty turnover, businesses are not able to create jobs opportunities on their own, the BCC chief argued.
"The government must create the best possible environment to allow firms to grow," Mr Longworth added.
"Cutting burdensome red tape and implementing its promised credit easing measures would give companies the confidence they need to take on more staff."
He said business is at the centre of the economy, and only the private sector will drive recovery and help deliver public services, like education, healthcare and pensions.
"It is the foundation of local communities, creating the wealth that helps them thrive, providing hard-working people with purpose and self-respect, and employment and training for those that want to learn," Mr Longworth said.
"The private sector is better at delivering growth than the public sector. While the public sector has a vital role to play, the private sector is our real economic engine."
Posted by Stephen Wilkinson
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