To: The Rt Hon Greg Clark MP (Secretary of State for Business, Energy and Industrial Strategy)
Ethical Business Standards Scale - Campaign for Legislation
To formulate and push for legislation which states that UK businesses have to publish/display an 'Ethical Business Standards Scale' (EBSS) stamp/chart/seal clearly accessible on products, promotional material, or business records (much like the nutritional labels on the front of UK food products). This scale will display their 'ethical rating' according to EBSS standards (which ensure fair workers' rights).
The EBSS scale will be displayed in a simple coloured graphic chart form in prominent places, such as on products, on primary marketing materials in the services industry, and clearly signposted and accessible on businesses where the previous examples are inappropriate.
Why is this important?
This EBSS will illustrate in coloured graphic form how 'ethical' the business is (similar to colour-coded nutrition labels on the front of food packaging*). The 'ethical' rating will be determined by a set of standards (similar to Shelter's 'Living Home Standard') designed to give workers fair rights:
* Minimum term/secure contracts for workers
* Sick pay for workers
* 28 days paid holiday for workers
* Minimum/living wage adherence
etc. (precise standards can be agreed upon)
* Health & Safety certificates
* Diverse workforce
Furthermore, the business will receive minus points for:
* Employees hired via agencies long term
* Zero hours contracts
* No holiday or sick pay
* Short term contracts
* High-profit margins
* Tax evasion
* High turnover of shareholders
* Off-shore headquarters
* Minimal tax payments to countries which products are sold in
The tally of these points will form their 'Ethical Business Rating', along with other considerations whcih can be drafted as this idea gets implemented (such as charity, profit-sharing, continued professional development, etc.).
Of course there will be cases where businesses will inherently have a low 'ethical' rating, because of the short term nature of that particular business. This is an acceptable stigmatisation, and consumers will understand in these cases (just as they understand but still occasionally opt for unhealthy foods with high red nutrition warnings as a treat).
The EBSS will encourage ethical business which, in turn, will be more beneficial to UK citizens as it will improve their employment standards and such their standard of living. Businessess will be stigmatised (by a hopefully discerning public) for rating low on the EBSS chart, and therefore will be encouraged to run their businesses more ethically.
The desired outcome is to get Secretary of State for Business to discuss it in parliament, and perhaps even bring about the creation of legislation to make EBSS mandatory by UK law, so that UK businesses have to use the scale to apply and publish their ethical rating (according to the standards stipulated).
(*as per the The Food Information Regulations 2014 & European Food Information to Consumers Regulation No 1169/2011).
