John Lewis boss: Profit must come first – then you can do good
THE chairman of John Lewis Partnership has warned that companies must not allow social and environmental goals to distract them from making profits.
Writing for The Mail on Sunday’s sister website thisismoney.co.uk, Sharon White said: ‘This is what I call Common Sense Capitalism.
‘Amidst all the noise, we should not lose sight of the fact that the most successful companies create jobs and wealth as well as giving back to society.’
Her intervention comes at a time when ‘woke capitalism’ has come under fire, most spectacularly in an attack by City investor Terry Smith on Unilever, which he accused of having ‘lost the plot’ in its obsession with political correctness.
White’s words carry weight as JLP is one of Britain’s biggest mutually run companies – owned by staff – and prides itself on its contribution to society. Last week, it donated £100,000 to the British Red Cross for use on its emergency work in Ukraine.
White said: ‘The public are demanding more of business. They want business to be more active on social and environmental issues.
‘But there also needs to be a recognition that companies are set up to make money.
‘Only when they have done this can those profits be invested in doing good. Making a profit is a passport to doing good.’
John Lewis Partnership will this week publish annual results.
The MoS revealed last month that JLP bosses have hinted its annual bonus would be reinstated.