Geof Cox's Blog

UK Companies Act Reform Urgently Needed

It will surprise some that a think-tank with close historic links to the Tory Party - The Social Market Foundation - has proposed a revision of Section 172 of the Companies Act to impose a duty on directors to see that employees, at all levels of a company, share in the proceeds of growth - and to extend reporting requirements to cover the basis for pay decisions.  This is, however, one of many reflections of the current disintegration of neo-liberal ideology in business, and the recognition that the neo-liberal model of capitalism, based on greed and exploitation, simply has to change if any kind of capitalism is to survive.

Actually the last major revision of the UK Companies Act in 2006 started this process, by requiring directors to 'have regard' for the interests of employees and other stakeholders, as well as shareholders (the owners of capital) - there was a huge opportunity in the early 'noughties' for a more radical change, but unfortunately 'New Labour' failed to grasp it, and talk of 'stakeholder participation' remained little more than talk.  A bolder move then could have mitigated some of the effects of the 2008 crash, and moreover began to address the emerging issue of business' environmental responsibility.

Happy Xmas 2018!


If you’re in my address book you receive each year an ‘Xmas Image’, chosen to reflect some important aspect of the year just passed.  Strange, then, that this year’s image is a photograph taken exactly 50 years ago – in fact on Christmas Eve 1968.

I believe it might well be the most influential photograph ever taken.  But why such a powerful impact?

Part of the answer is in its historical moment.  1968 was the year of the Tet Offensive in the Vietnam war – and the realisation that despite its military might America was actually losing to local fighters with few resources; it was the year of the Prague Spring, when the people of Czechoslovakia asserted their human rights against the military might of the old Soviet Union; and in western Europe too student and worker protests brought France to the brink of revolution (the president was evacuated by helicopter from Paris to a French army base in Germany).  It was a time of turmoil – but also of tremendous optimism and hope that people acting together could really change the world for the better.

Globalisation, politics and social enterprise

In a world where globalisation has re-aligned political affiliations, and invigorated right-wing parties with the injection of populism and nationalism, what insight can the global social enterprise movement offer?

A recent Guardian editorial traced the origins of the UK’s brexit crisis to ‘the disruptive form of globalisation promoted by Tories and New Labour that eviscerated habits of life, work and family’.  This kind of globalisation transformed politics, the argument goes, from a class-based party system, in which Labour drew support from the poor and poorly educated, to today’s electorate in which it is actually educated and younger voters that support Labour, while the old and rich back the Tories – the disputed votes now being precisely 'the poor and poorply educated', those ‘left behind’ by the disruptive impact of globalisation.

Britain’s Fat Fight: the ‘elephant in the room’ (no pun intended)...

Hugh's Letter

Hugh Fearnley-Whittingstall’s recent television series made some good points, and his continuing campaign to restrict junk food marketing, etc, should be supported, but I don’t think he quite gets to the heart of the problem.

The ‘elephant in the room’ is not really the fact that we eat a lot of food that ruins our health – it’s that we live in an economic system that is fundamentally based on getting us to consume more and more of anything and everything – regardless of our well-being, or that of our natural environment, or anything except extracting the maximum profit.

Why does the food industry put junk like huge doses of sugar in our food?  For 2 reasons:

1. It’s cheap – so they make more profit;

2. It makes other cheap ingredients taste better – so we buy it – and they make more profit.

Happy Xmas!

Those who have known me for some years will recall that each Xmas I send an image which reflects both the past year and something of the Xmas spirit.

Bringing these together in the year Trump took office in America, the UK started the 'brexit' procedure, and Europe continued to struggle with refugees, there seemed only one theme that would do: the common humanity and shared values of all peoples.

I thought first of the many sculptures commemorating the children saved from fascism before the war, such as Frank Meisler's 'Kindertransport' sculpture at London's Liverpool Street Station; but on reflection I have chosen a slightly more artistically challenging sculpture for this year's Xmas Image, by Moroccan-French-Italian artist Bruno Catalano.

Catalano has described his 'Voyageurs' - naturalistic figures with large parts of their bodies missing - as 'world citizens', and he has linked them with his own experience of emigrating from Morocco to France as a child, then working as a sailor...

What would a social enterprise economy look like?

CafedirectSocial enterprise – using business models and methods, but for the common good, rather than private gain -  has now proven to be a viable way of organising human affairs.  We can do business better than businesses: for years Cafédirect, for example, has taken market share from multinational corporations, and social investment funds often beat conventional funds even by their own criteria of financial returns; but at the same time we also often achieve greater social impact than conventional charity or philanthropy.

So why aren’t politicians clamouring to use social enterprise as a template for a new economy? – especially in the light of the shortcomings of planned economy models exposed by the soviet collapse in the nineties, and those of contemporary capitalism exposed by the world financial crisis from the noughties to date?

Social Enterprise Law in South Eastern Europe


I've recently been advising the government of a small country in South Eastern Europe on their social enterprise legislation.

Disappointingly, their first Draft Law drew heavily on the Italian 'Types A & B' Social Co-operatives model.  This made me realise just how far social enterprise had come in the last 20 years (Italy itself introduced registration of social enterprises using a much broader definition in 2005).  I thought part of my assessment of where we are now might be of interest to readers in other countries...

A few years ago, 'social enterprise' was seen as a small business 'sector', rather like 'retail' or 'textiles', or as a type of organisation. This is now seen as a misunderstanding: what we call 'social enterprise' is in fact a broad social movement - a whole new way of organising human affairs, linked with 'social innovation' and 'social investment', and influencing how many existing organisations see themselves.

The recent growth in social enterprise has been in response particularly to environmental crisis and the disruptive impact of the internet, and also to loss of faith in both 'state capitalism' or planned economy models (following the 'soviet' collapse of the 1990s), and market economy models (following the world financial crisis - ongoing from 2008).

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