M Institute

The banks were irresponsible with medium enterprises

M Institute co-founder Paul Druckman was wondering how medium enterprises have been impacted by bank actions over the past few months of the economic crisis. Here's what he found.

An excellent source from within the accountancy profession prompted me to check out which businesses have been put under by the banks in the last three months of 2008. 

A quick perusal of the list shows that a number of medium enterprises are among the casualties. These had been profitable, but which the banks just chopped, in some instances with less than 24 hours' notice to rearrange their facilities.  In the North of England, I am told that Yorkshire Bank and the Co-op have rescued quite a few at next to no notice.  

However things have gone quieter in the last month since the Government leant on the banks to change their behaviour. 

Does anybody have any bank actions to report? Do get in touch.

CSR needs new focus on medium enterprise

M Institute co-founder Paul Druckman is attending the European Multi-stakeholder Forum on CSR (corporate social responsibility) in Brussels from where he sends this note outlining a couple of things that CSR groups could do to help medium enterprises engage with the concept. 

I send this note while attending the European Multi-stakeholder Forum on CSR in Brussels on 10th February 2009. The Forum brings together about 250 people from key stakeholder groups, including employers and business representatives, trade unions, investors, academics, civil society organisations and public authorities. The aims of this meeting are to review progress on CSR in Europe and globally, and to discuss possibilities for future joint initiatives.

From the perspective of the medium enterprise, there was an unexpected focus on medium enterprise during the morning session. Some of the issues raised and proposed included: 

• CSR uses the term “corporate” and this can be a problem in medium enterprise where that term implies large corporates
• The link between CSR and public procurement is essential when thinking about medium enterprises
• SMEs need tools and instruments to implement CSR, this cannot be simply downgraded large corporate tools. 

UEAPME, the European employers' organisation focusing on SMEs, has a CSR focus which seems to be on diversity. Check out  http://www.csr-for-smes.eu. 

The multi--stakeholder forum concept, such as this one, is fascinating as each stakeholder brings such different perspectives, but with the tendency being to focus on society, rather than business issues. This may be unfair, but it is certainly my impression so far today.

Say no to bank bonuses!

Should Britain's failed bankers be able to reward themselves with bonuses in the billions? M Institute's co-founder Jyoti Banerjee thinks that would be a travesty.

Let me say this as plainly as I can: Britain’s bailed-out bankers should not get a bonus. 

It must be a morally-corrosive atmosphere in Britain’s banks if their senior management are prepared to pay out bonuses in the billions of pounds a few short weeks after these banks have been bailed out by the public purse.  Their argument is two-fold – they need to reward those who did a good job, and they need to hang on to the talent needed to rebuild Britain’s banks.

Their PR message seems to be getting across to some quarters since even Chancellor Alastair Darling, arguably the closest thing we have to an owner of the near-nationalised banks, is parroting the same worn spiel. 

Both arguments are a nonsense.