UK Government Gets on the Responsible Capitalism Bandwagon

It is good to see the government making noises about the role of values in the companies which it buys goods and services from (http://bsb.tips/ukgovtvalues).

Minister for the Cabinet Office, David Lidington said that the government will “extend the requirements of the Social Value Act to ensure all major procurements explicitly evaluate social value where appropriate, rather than just ‘consider’ it.

By doing so, we will ensure that contracts are awarded on the basis of more than just value for money – but a company’s values too, so that their actions in society are rightly recognised and rewarded.”

It will be interesting to see how and if this noise turns into reality. Government has a reputation for going with the low-cost provider, and prioritising this heavily over other considerations. In addition, it is currently telling local authorities explicitly NOT to include ethical considerations in their investment decisions, such as investing companies profiting or dealing in tobacco, military or apartheid regimes.

So those of us building businesses on a purposeful or values-led basis should both welcome the comments, and look to hold the government to account to deliver to them.

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