Duncan Exley Director

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Presentation transcript:

Duncan Exley Director

FTSE 100: average pay (red area) compared to CEO pay (blue area) What the average person thinks it should be 6:1

FTSE 100: average pay (red area) compared to CEO pay (blue area) What the average person thinks it should be 6:1 What it actually is: 183:1

Health and Social Problems Worse in More Unequal Countries Index of: Life expectancy Maths & Literacy Infant mortality Homicides Imprisonment Teenage births Trust Obesity Mental illness – incl. drug & alcohol addiction Social mobility

Other impacts of inequality Economic (Instability & crises, Debt, Inter-regional inequality, Decreased productivity, Deceased consumer spending-power). Distrust of institutions (public, private, and voluntary sector).

Public Attitudes Ipsos/Mori (August 2015): Inequality/poverty is 4th most important issue facing Britain. 82% of the public say “the gap between those with high incomes and those with low incomes” is “too large” (British Social Attitudes Survey, Released 2013)

Addressing inequality in procurement: why? Pressure on internal pay and job security False economy, especially for public- sector organisations PR implications

Addressing inequality in procurement: paths to change (from local authorities) Addressing internal practices Policy + structures +culture Public statements of intent Audit of effect

Inequality-reducing, performance- enhancing practices “As if the whole workforce matters” Some = probably beyond procurement Moderating top pay, incentives, Extending bonuses / profit sharing employee role in decision-making Limiting ratio between top & average pay Training / progression plans Low pay

Inequality-reduction: other factors Spending “Local industrial policy” Policy objective

Addressing inequality Creating a culture (from local authorities) Stakeholder, experts, practitioners Human story Link impacts & actions Business case

Duncan Exley Director