POLITICS
Nikolaos of Myra gave rise to the modern model of Santa Claus
to give back The rising pressure
Christmas is traditionally a time for giving. Fourth Century Christian Nikolaos of Myra is credited with starting what has today become a hugely important part of the commercial calendar. Nikolaos, later St Nicholas (Santa Claus),
became known for leaving small gifts on the windowsills of the needy of his local community. That has snowballed today to a huge commercial enterprise, driven by massive multi-channel promotion, around the giving of expensive gifts to our nearest and dearest. From a business perspective, the festive
season – from the unsustainable practice of Black Friday in November to the end of the January sales - can make or break a commercial year, delivering companies from poor or mediocre performance to success. But the forecast is bleak - Christmas 2016
could be the last for some time that sees people digging deep into their pockets for festive fun and frolics. This year, borrowing money is cheap – the cheapest it has ever been. The other side of that coin is that savings have little value, so people are spending money they see little point leaving in low-yield investments. Strong retail performances since the EU
Referendum in June suggests people are not afraid to defer any worries they might have about paying the bill. But there is an expectation that they will begin to feel the pinch from early next year as currency and pricing changes resulting from the vote to leave the EU start to hit home. The fall in the value of sterling against the dollar,
for example, means the pound buys less crude oil than it did seven months ago, which has led to rising fuel prices in the UK. Higher fuel prices means delivery costs increase, which adds to the price of food and other goods on shop shelves. The weaker pound also means that UK plc has
less buying power when it comes to importing raw materials used in food production or manufacturing, which also adds cost to the end user, with some high profile media stories in recent months demonstrating how this will likely play out.
20 business network December 2016/January 2017 The general consensus is that the cost of living
in the UK, driven by inflation fuelled by the Brexit vote, will rise next year. While things can quickly change, many economists suggest that inflation levels of three to four per cent may be expected. Rising prices will impact businesses as well as
consumers, but with one important difference – business will be expected to rally to the cause to defray the impact on consumers. Despite also being affected, business will be seen as the bad boy in the class if it attempts to offset rising production costs.
‘Healthy businesses and heathy communities go hand- in-hand, and recognising this, Chamber members already give back to communities in many ways’
“It’s very much a double-edged sword for business,” said Chris Hobson, the Chamber’s Director of Policy. “Businesses will be looking to pare costs to
remain competitive. That will mean looking closely at staffing levels, production and transportation costs to make sure there is no waste and to avoid passing on the rising costs to the consumer. At the same time businesses will also be coming under pressure to support to staff with at least inflation-matched pay rises. Staff are the greatest asset for many businesses and careful thought will need to be given to how they can be supported in a manner that is sustainable for the business. “But these issues will be played out on a much
larger scale than the individual business and employee relationship. Food and fuel costs account for roughly 40% of a low income household’s monthly outgoings. If international factors around currency and pricings result in these families struggling then it’s vital that business is seen as part of the solution, not part of the problem.
“There are certain forces in the media and
politics that would gladly deflect to business some of the criticism that may lie at their door. “We know that healthy businesses and heathy
communities go hand-in-hand, and recognising this, Chamber members already give back to communities in many ways. Corporate Social Responsibility (CSR) used to be a disposable ‘nice to have’, but more and more it’s becoming an essential tool in a business leader’s kit for success.” According to the Financial Times, CSR is a
“movement aimed at encouraging companies to be more aware of the impact of their business on the rest of society, including their own stakeholders and the environment”. It is a very broad concept. At its most easily
understood, it could mean offering staff to undertake community projects such as litter- picking in parks for an hour a week or volunteering time to work with on interviewing skills with young people in schools. At the other end of the spectrum it could be a drive to ensure that a factory is carbon-neutral or produces no waste. “Whatever approach a business takes, there is
a strong possibility that it will involve cost but it can also be hugely beneficial,” said Chris. The Chamber last month supported a CSR
conference organised by Rhubarb Farm and Clowne Enterprise and held at the John Fretwell Sporting Complex, Mansfield. The conference received funding from Foundation Derbyshire. Jean Mountain, the Chamber’s Immediate Past
President, told about 130 delegates that the Chamber’s aim was to highlight the importance of CSR and the benefit it can have for both business and for voluntary/community organisations, describing it as “a great opportunity to get involved, find out what already happening and, hopefully increase CSR activity in the East Midlands”. Guest speakers on the day included Shona
Welberry of Business in the Community, Steve Bennett of Traffic Labour Supplies, Steve Batey of Portakabin, Jennie Street of Rhubarb Farm, Dick Hargreave of Derbyshire Constabulary and Michelle Beckett of Investors in Community.
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