The scale of the Rana Plaza tragedy – and the fact that we here in the UK had unwittingly contributed to it through our demand for cheap clothes was so deeply shocking that it has changed the behaviour both of retailers and their customers.
British businesses can lead the way on this through their environmental and procurement policies and the working conditions they give their employees.
However, overseas their efforts are equally vital and British business’ can lead by example helping to eradicate child labour, protect the environment and expose corruption all over the world.
Looking out for the people around you, not just yourself is fundamental to the Liberal Democrats and sets us apart from the Tories. As a result, I think this is an area where we can have a real and long-lasting impact on this country’s business culture.
More than 50 studies, including from Goldman Sachs, show that companies with strong environmental, social and good governance policies do better than their peers. Here’s some examples:
Marks & Spencer have set themselves the goal of becoming the world's most sustainable major retailer, and not just because they’re concerned about their image - M&S believe their changes saved them £70 million in one year alone.
Following Rana Plaza, Primark has devoted a whole website to the work they’re doing to improve workers’ rights in Bangladesh, as well as helping those affected by the disaster.
And H&M now publish a list of all of their suppliers, making it easier for people to check on those who produce their clothes.
The Government is working with the British Retail Consortium to encourage retailers to become more transparent and take more responsibility for their suppliers. We are trying to make it as easy as possible for retailers to act ethically, and as easy as possible for shoppers to decide where best to spend their money to support those businesses who are making a difference in communities across the world.
But it’s not just the retail sector that is changing. When the UK chaired the G8 in Northern Ireland last year we made promoting transparency a top priority and following the G8 we have been working with our European neighbours to shine a light on the extractives sector.
Companies will have to publish all payments they make to any government worldwide. The public will know if a multimillion dollar payment has been made, and can check if the result is new schools for children or new Bentleys for government officials.
We will be one of the first countries to put this in place, and not only that, we have also signed up to a global standard to open up how we monitor these industries here in the UK too.
With Liberal Democrats in Government, now is the time to drive corporate sustainability and transparency to the top of the agenda, and that is exactly what the Lib Dems are doing in the Department for Business.
What is becoming clear is that not only does this not come at the expense of profits, but that properly ingrained corporate responsibility can actually create long-term success.
And the Liberal Democrats are driving this. The Liberal Democrats are the party of fairness, the party of equality, the party of responsible business.
