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Citation: Burton, Nicholas and Hope, Alex (2017) Responsible business? What can we learn from the Quakers. In: Public Lecture, 3rd July 2017, Westminster Quaker Meeting House.

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Quakers&Business:therise,fallandfuture

DrNicholasBurtonDrAlexHope

• Ourresponsetotheconcernfora“NewEconomy”http://www.quaker.org.uk/our-work/economic-justice/new-

economy

• ProjectkindlyfundedbyQPSWandQuakersinYorkshire

• MemberPickering&HullAM• DeputyClerk,MaltonLM

• SeniorLecturer,StrategyandCorporateResponsibility,NorthumbriaUniversity

• ConvenorofSpiritualityinManagement&LawresearchgroupandAcademicWorkingGroupatQ&B

• AssociateTutor,Woodbrooke• ManagementCommittee,Quakers&Business(qandb.org)

• Director&Trustee,Bootham School

• WhoweretheQuakersinbusiness?

• SomereasonswhyQuakersweresosuccessfulinbusiness

• SomereasonswhyQuakerbusinessesdisappeared

• Theimpactofthecorporatelaw‘shocks’ofthemid-nineteenthcentury

• Lessons:Corporategovernancematters– Nic

• Lessons:networksandmovementsmatter– Alex

• Lessons:valuesmatter– Alex

• Lessons:Businessmodelsmatter– Alex

• AccountingPriceWaterhouse(1865)• BankingBarclays(1690),Lloyds(1765),Guerney (1775)• BiscuitsHuntley&Palmer(1822),Carr (1831),Jacobs(1851)• BrewingTruman&Hanbury (1781),Young&Co.(1831),Burton

(1842)• ChemicalsAllen&Hanbury (1715),Crosfields (1814),Reckitt

(1840),Albright&Wilson(1856)• ChocolateFry’s(1761),Huntley&Palmers(1822),Cadbury

(1824),Rowntree(1862)• Clockmaking Tompion (1670),Quare (1671),Graham(1738),

Huntsman(1740)

GlassWaterfordCrystal(1783)EngineeringRansomes (1789),BakerPerkins(1878)LifeInsuranceFriendsProvident(1832)MatchmanufacturingBryant&May(1843)MetalsBristolBrassCompany(1702),LondonLeadMining(1705),Rawlinson(1720),Huntsman(1740),Ransome (1789)NewspapersNewsChronicle(1855)Paper&PackagingJohnDickinsonStationary(1804),E.S.&A.Robinson(1844)Pottery&ChinaCookworthy (1730),Champion(1773),RetailingLawsStores(1885)ShoemakersC&JClark(1825)ShipbuildingSwanHunter(1880)SteelmakingConsett IronCompany(1864),Stewarts&Lloyds(1859)TextilesGurney(1683),Were(1686),Barclays(1690)

• “Thelaboratoryoftheindustrialrevolution”(Turnbull,2014)

• Manufacturing,canals,railways…….

• But

• Overend &Gurneyandthebankingcollapseof1866• Bryant&May– matchmakersstrike1888

• MarketingFixedprices;pressadvertising.• OperationsVerticalintegrationofextraction,productionanddistribution• FinanceCommercialpaper• EmployeerelationsAdulteducationoncompanytime;hotmealsfor

employees;housingforemployeestobepurchasedovertimeatcostandlowinterestrates;workers’hostels;pensions;pensionsforwidows;indexedpensions;freemedicalanddentalservicesforemployees

• GovernanceFunctionaldepartmentorganisation;multidivisionalorganisation;participativemanagement;consensusbuilding;workscouncils;appealscommittees;profitsharing;cooperativeownership;employeeselectionofmanagers.

• AccountingFormalaccountingandauditing• R&DResearch&developmentdepartments;hiringofuniversity

professorsasconsultants.• BankingProvincialBanking;thecheque;billsofexchange

• Trustworthinessandintegrity• Yeomanspirit• Higherwages• Employeewelfare• Supplierwelfare• Honesty– ie productmarketing• Philanthropy

• Partnershipstructure– theQuakerowner-manager• Meetingoversight,self-regulation• Decision-making• Supportandadvicenetwork– awatchfuleye• Roles(Elder/Overseer)• BYM‘advices’• Avoidanceofdebt(andexpulsion)• Openbookpolicy(surveillance?)• Accesstothe‘Quakernetwork’

• AdamSmith“TheInvisibleHand?”• Familyties• Geographicalreach(nationalandinternational)• Sharedrisk-taking• “Internal”capitalmarket• Educationandapprenticeships(barredfromuniversities)

• 1844JointStockActand1856LimitedLiabilityAct

• Shareholdereconomy• Separationofowner/manager• Limitedliability• Impactoncorporategovernance• Dilutionofvalues

• JointStockcompanies• Examples- Reckitt’sin1888,Crosfield’s in1896,Rowntree’sin1897andCadburyin1899

• Why?– Selectionforces,accesstocapitalmarkets

• Atthesametime(broadly),thepoweroftheQuakernetworkswerediminishing– Marrying-out– Decliningmembership– Freelyavailablecapitalinthemarket– Seductionbycapitalism

“Quaker”business

• ScottBaderCommonwealth• Foundedin1921,giftedtoatrustwithcharitableobjectivesin1951

• “Foundedonthebeliefthatasociallyresponsibleundertakingcannotexistmerelyinitsowninterests.Itispartofthewholenationalandinternationalcommunityandassuchithasresponsibilitieswhichextendfarbeyonditsfactorywalls”

• Common-ownershipor‘trusteeship’wasconceived“asanalternativetoawar-basedcapitalisteconomyontheonehandandtocommunismontheother”.

Whatcanwelearnfromthis?

• Corporategovernancematters• Networks/movementsmatter• Valuesmatter• BusinessModelsMatter

CorporateGovernanceMatters

CorporateLawMatters

WhoamI?

• SeniorLecturer,BusinessEthics,NorthumbriaUniversity• AssociateLecturer,EnvironmentalManagement,Open

University• Co-ConvenorofResponsibleBusinessresearchgroup• SteeringGroupmemberUnitedNationsResponsible

ManagementEducationInitiative(UNPRME)• NOTaQuaker….

Networks/MovementsMatter

QuakerBusinessMeetingYork

RochdalePioneers

Networks/MovementsMatter

• Enterprises that choose to follow a business strategy, in which they seek to benefit both human beings and the environment.

• Pushes for "values-based" economic values where values represent social and environmental concerns at both global and local scales

Networks/MovementsMatter

• 1,600 certified B Corps from 42 countries and over 120 industries

• B Corporations are a movement to use business innovation as a means to make not only profit, but also help alleviate poverty, build stronger communities, improve the environment and great jobs with purpose

Networks/MovementsMatter

• Launched in July 2000 the compact now boasts a membership of some 9,269 companies from 164 companies resulting in over 43,000 public reports from companies on their ethical, responsible and sustainable actions

• An initiative which aims to assist companies in aligning their strategies and operations with universal principles on human rights, labour, environment and anti-corruption

Networks/MovementsMatter

• Business-led charity presided over by HRH the Prince of Wales

• Membership of the core network stands at over 800 companies who engage with thousands more organisations to work collaboratively on economic, social and environmental issues

Networks/MovementsMatter

• MostlySecular• Drivenbydiversesetofinterests• Weaklinks(ifany)between

personalandcorporatelife• International/Globalised/Dispersed

ContemporaryMovementsandNetworksMovementsofthepast

• Oftenrootedinreligion• Drivenbycommoninterests• Stronglinkagesbetweenpersonal

andcorporatelife• Local/National/Concentrated

ValuesMatter

QuakerValues QuakerBusinessValues

ValuesMatter

TooGeneric?....

Wheredocontemporarybusinessvaluescomefrom?

ValuesMatter

ValuesMatter

ValuesMatter

EnlightenedCEOs?

• MostlySecular• Drivenbydiversesetofinterests• Weaklinks(ifany)between

personalandcorporatevalues• International/Globalised/Dispersed• Drivenbyrangeofindividuals

ContemporaryValuesValuesofthepast

• Oftenrootedinreligion• Drivenbydiversecommon

interests• Stronglinkagesbetweenpersonal

andcorporatevalues• Local/National/Concentrated• Drivenbyindividuals

ValuesMatter

BusinessModelsMatter

A business model describes the rationale of how an organization creates, delivers, and captures value

The process of business model construction is part of business strategy.

BusinessModelsMatter

Traditional For Profit Business Model

BusinessModelsMatter

Traditional Non-Profit Business Model

BusinessModelsMatter

The Responsible Business Model domain

BusinessModelsMatter

BusinessModelsMatter

BusinessModelsMatter

The Quaker business model

BusinessModelsMatter

The cooperative business model

BusinessModelsMatter

Circular Economy Business Models

BusinessModelsMatter

Business Model Innovators

Conclusions

Q

• Corporategovernancematters• Networks/movementsmatter• Valuesmatter• BusinessModelsMattermore

thanever…

WecanlearnmuchfromQuakerBusinessofthepast.

Howcanweadapttheselessonsforfuturebusiness