BHS Death: Who is to Blame?

Image: The Herald, Scotland https://goo.gl/X59KeM

British Home Store (BHS) was born in 1928 with steady expansion growth and increasing competition with rival stores that bring excitements to the British workforce and customers. In pursuit of survival, BHS has undergone several successful surgical operations in the post-war era such as expansion across the UK, merging and franchising its brand. Many feared that BHS survival chances would diminish in 2000 when Sir Philip Green took charge of the company health affairs, but he dismissed the fears. However, sickness symptoms were confirmed in 2005 when BHS announced its losing customers to rivals. After several attempts to revive BHS, the health continued to deteriorate. This continued until 2015 when it was transferred to Dominic Chappell, unfortunately for BHS its health has gone beyond resuscitation. In 2016, the once healthy and competitive BHS was in coma without a chance of survival.

Losers

Although all BHS stakeholders were disappointed in the news of its death, this has different implications for different stakeholders. During its heyday, BHS had 163 stores, 11,000 British workforce that comprised direct and indirect staff, servicing 22,000 pensioners, tax-payer, and 1.2m British loyal customers. These were the biggest losers as the death of BHS significantly changed their way of life and in some cases, it threatened their survival as well.

Image: Drapers, https://goo.gl/vDGG41

Companies Act 2006

The Companies Act 2006 s830 specifies that companies should only distribute a dividend to the shareholders from the profit available or accumulated profits. This profit should be after deducting its accumulation losses. Also, Companies Act 2006 s172 specifies the duties of company’s directors to act in good faith with the aim of promoting the company’s success for all its members. In the case of BHS, members include all the stakeholders such as employees, pensioners, customers, suppliers, creditors, government, UK taxpayers, and shareholders.

Many commentators argued that Sir Philip Green and his family members along with other shareholders did not regard corporate governance or Companies Act 2006; and they made decisions on the BHS activities in their personal interest to the detriment of the other BHS members. Other commentators believed that The Green family and other shareholders enjoyed unfettered access in the heart of BHS; that was cleverly done with a complex company structure and inter-company transactions that include £422m dividend pay-out against £208m profit, £10m loan interest, £151m rent received from sales and lease-back, £250m management charges and £3m ground rent, all received from BHS. As a result, between 2000 and 2015, the pension fund has fallen from £5m surplus to 571m deficits and BHS survival and going concern was set on a slope.

Structure of Taveta Group (Controlled by the Green Family): Source from HC Committee Reports, https://goo.gl/reA7Er


International Standards on Auditing

The International Standards on Auditing (UK) specifies that the objective of the audit work on the financial statement is to give reasonable assurance. This assurance should be included in the auditor’s report to highlight whether the financial statement is free of error or fraud. Although, it is not a guarantee that material misstatement due to error and fraud will always be detected when audit work complies with ISA (UK). However, the ISA (UK) requires that auditor should exercise professional judgment in identifying and assessing the material risks in the financial statements. Auditors are required to design and perform audit procedures that are responsive to material risks, and to obtain appropriate, and sufficient evidence regarding the business activities from audit procedures upon which audit opinion will be formed. In this regard, PricewaterhouseCoopers (PwC) audit design and procedures failed to detect or raise going concern issue during 2015 audit when BHS was sold for £1.

PwC Leeds firm audited BHS Group Ltd financial accounts for the 74 weeks to 29 August 2009 and since then they continued to audit BHS financial account till 2015. They are also the auditing firm for other Green Family companies such as Taveta Investment Limited and Taveta Investment (No.2) Limited, the parent companies of BHS. Commentators believe that this could have created threats to their objectivity due to possible close or personal relationship with the Green family and non-audit fee (audit fee ratio of up to 8:1). These threats include familiarity, intimidation, and self-interest as the audit firm and senior partner may not be necessarily sceptical and may be sympathetic towards the directors and employee with whom they have a relationship.

Image: Accountancy Age, https://goo.gl/ZVN1Yu

On the 13 June 2018, the Financial Reporting Council (FRC) halted the over 30 years career of Steve Denison a senior partner with a 15-year ban and £325,000 fine. PwC accounting firm was fined £6.5m and FRC will be monitoring their practice over the next three years.

Blame

In my opinion, the directors of BHS acted unethically and with total disregard for the Companies Act 2006 and corporate governance in discharging their duties between 2000 and 2015. Considering the consequences of their actions, the innocent pensioners, direct and indirect employees and taxpayers will pick up the bill for the BHS pension deficit. It is unfortunate that those directors got away with just over £363m fines without a ban from serving as company directors in the future or possibly jail terms.

However, as much I would like to agree with  PwC that their failure could not have contributed to BHS death, from a professional viewpoint, they have the duty not only to advise the BHS board of directors, but the 2015 Audit Report should have explicitly raised going concern issues. This would have raised other stakeholder’s awareness as the Audit Report would have been available to the public through Company House.

Mayowa Akinbote ACCA, MA, PGCHP, FHEA, BSc.                                                Lecturer in Accounting and Finance                                                                        Staffordshire Business School

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Untangling the link between productivity, exporting and innovation of a firm through Brexit

By Ema Talam  and on twitter @ematalam

It is often claimed that the United Kingdom has benefited from joining European Union in terms of its economic performance. On the other hand, some authors argue that the rate of economic growth in the United Kingdom did not rise as a result of its accession to the European Union in 1973[1] (Coutts et al., 2018).

However, different estimates show that the United Kingdom will experience negative consequences of its exit from European Union, but the magnitudes of those estimates vary. The impacts on productivity are argued and there is no general consensus of the scale that Brexit will affect overall productivity in the United Kingdom.

Coutts et al. (2018, p. 20) state that “no aggregate link exists between trade and productivity for advanced open economies, unlike emerging economies where a relaxation of constraints on trade allow multi-national companies to enter, and to raise both exports and productivity”. At the same time, Dhingra et al. (2017) recognise that losses in terms of productivity are possible and list several factors that may contribute to productivity and welfare losses such as: “reductions in the variety of goods and services, weaker competition, the erosion of vertical production chains, falls in foreign direct investment (FDI), slower technology diffusion, less learning from exports or lower Research and Development” (p. 3).

Productivity, exporting and innovation of a firm are three seemingly distinct concepts. More in depth analysis shows that these concepts are indeed related and that it is almost impossible to examine either one of them without examining the other two. Characteristics of exporters and innovators depict well the extent of the link between the three concepts:

  • Exporters tend to be more productive than non-exporters (Wagner, 2007; Damijan et al., 2010; Caldera, 2010; Movahedi et al., 2017) and often have higher productivity growth (Wagner, 2007).
  • Furthermore, exporters are more likely to innovate (Damijan et al., 2010; Caldera, 2010), spend more on innovation (Caldera, 2010; Monreal-Perez et al., 2012) and have more (major) innovations (Bleaney and Wakelin, 2002; Monreal-Perez et al., 2012) than non-exporters.
  • Innovators tend to be more productive (Bleaney and Wakelin, 2002; Damijan et al., 2010; Caldera, 2010; Cassiman et al., 2010; Movahedi et al., 2017) and are more likely to export (Bleaney and Wakelin, 2002; Damijan et al., 2010; Cassiman et al., 2010) than non-innovators.
  • Exporters and innovators also share the set of common characteristics: they pay higher wages (Bleaney and Wakelin, 2002; Caldera, 2010) and are present in the sectors characterised with higher R&D intensity and greater amount of intra-industry trade (Bleaney and Wakelin, 2002).

A recent report published by Centre for Cities (2018) shows that in Britain, exporters constitute more productive firms. Figure 1 shows that British economy is characterised by large number of firms with low levels of productivity, but also that local service firms are predominantly less productive firms. Exporting firms account 13.2% of all the firms examined. The share of exporting firms among the top ten per cent of the most productive firms in 2015 was 31.2%, while the share of exporting firms among bottom 33 per cent was 5.6% in the same year. (Centre for Cities, 2018).

Figure 1: Productivity of all firms

Figure 1: Productivity of all firms, UK (2015)

Figure 2 Productivity of exporting firms compared to local service firms in the UK (2015)

Source: Centre for Cities (2018) The wrong tail-Why Britain’s ‘long tail’ is not the cause of its productivity problems.

*The report indicates that productivity was calculated as “gross value added per worker at a branch level” (Centre for Cities, 2018).

** Original data source is limited to non-financial business economy

***Only private sector productivity was examined

**** Article in Financial Times (Strauss, 2018) on the report indicates that, in this case, all firms engaged in markets beyond their local one are considered to be exporters. However, it can be assumed that certain portion of these firms export abroad as well.

The link between exporting and productivity is also theoretically grounded. It is commonly hypothesised that exporting and productivity are linked in the following manners:

(1) self-selection hypothesis, suggesting that more productive firms self-select into export markets, and

(2) learning-by-exporting hypothesis, suggesting that firms increase their productivity by participating in export markets (Wagner, 2007). Empirical findings prove the existence of both the link leading from productivity to exporting (Caldera, 2010; Cassiman and Golovko, 2011; Movahedi et al., 2017), as well as the link leading from exporting to productivity (Damijan et al., 2010).

Furthermore, previous research shows that exporting is linked to innovation (Damijan et al., 2010) and, at the same time, that product, process and organisational innovation have an influence on exporting (Basile, 2001; Bleaney and Wakelin, 2002; Caldera, 2010; Cassiman et al., 2010; Cassiman and Golovko, 2011; Monreal-Perez et al., 2012; Fryges et al., 2015; Azar and Ciabuschi, 2017).

Some authors suggest that there exists complementarity between exporting and investment in productivity, in the sense that one raises the profitability of the other (Lileeva and Trefler, 2010). Firm’s productivity can be tackled through factors internal to a firm (i.e. managerial practice and talent, quality of labour and capital inputs, decisions about firm’s structure, etc.) and influenced by the factors that are external to a firm (i.e. productivity spillovers, intramarket competition, regulations, etc.) (Syverson, 2011).

Empirical research has shown that innovation positively influences productivity (Cassiman and Golovko, 2011; Movahedi, Shahbazi and Gaussens, 2017).

Four types of innovation can be distinguished:

(1) product innovation, “the introduction of a good or service that is new or significantly improved with respect to its characteristics or intended uses” (OECD/Eurostat, 2005, p. 48),

(2) process innovation, “the implementation of a new or significantly improved production or delivery method” (OECD/Eurostat, 2005, p. 49),

(3) marketing innovation, “the implementation of a new marketing method involving significant changes in product design or packaging, product placement, product promotion or pricing” (OECD/Eurostat, 2005, p. 49), and

(4) organisational innovation, “the implementation of a new organisational method in the firm’s business practices, workplace organisation or external relations” (OECD/Eurostat, 2005, p. 51). Schmookler (1954) suggests that size of the market is one of the determinants of the level of inventive activities.

Brexit will almost certainly result in larger trade costs for the firms involved. Van Reenen (2016) indicates that there are three distinct categories of trade costs that will increase following Brexit:

“(i) higher tariffs on imports;

(ii) higher nontariff barriers to trade, arising from different regulations, border controls, and the like; and

(iii) the lower likelihood of the United Kingdom participating in future EU integration efforts, such as the continued reduction of nontariff barriers”.

Following the lines of the discussion above, trade costs are likely to have a greater impact on the more productive firms in the British economy. Also, due to the existence and the complexity of the links between exporting, productivity and innovation, adverse effects can be expected to go beyond influences on productivity.

References – blog post – v246

By Ema Talam  and on twitter @ematalam

[1] EEC at the time.

‘Made in Dagenham’

By June Dennis, Dean of Staffordshire Business School

In 1968, some 50 years ago, a group of women machinists at Ford Dagenham went on strike and campaigned to be recognised as skilled workers.  The women trained for 2 years as machinists but were paid just 85% of what male unskilled workers received.  Although they only achieved partial success – the women did not get upgraded but received an increase in pay to 92% of what a male cleaner would earn – this well publicised campaign was considered a major stepping stone in the establishment of the Equal Pay Act of 1970, now superseded by the Equality Act 2010.

I recall watching the film ‘Made in Dagenham’ about the Ford Dagenham workers some years ago whilst on holiday with my two daughters, then aged 15 and 12.  As we discussed the film afterwards, I realised even then that it was going to be one of those defining moments in their development.  It also gave me an opportunity to tell them of some of my experiences. For example, as a final year student at a job interview I was asked ‘shouldn’t you be warming your husband’s slippers by the fireplace rather than working here’.

Dr June Dennis - the new Dean of Staffordshire Business School

June Dennis – the new Dean of Staffordshire Business School

Later in my career, I recalled being told by a very well meaning male colleague that I hadn’t been given the role as link tutor for a partner in India because I had a young family and might not be able to cope with a couple of trips abroad.  I was also able to tell them about my parents being role models – both were nurses and on the similar pro-rata salaries for much of their careers, although, it was my mother who worked part-time and unsociable hours to fit around the family.  I started my own business and subsequently became a lecturer because I could not maintain an international marketing role with a young family.  Neither of my daughters had been aware that such discrimination had existed to such an extent nor that their aspirations might still be curtailed by social and workplace norms about gender roles.  Some seven years later, both are intelligent, articulate and confident women who are already role models to younger teenagers.

This year, around 10,000 organisations with more than 250 staff were required to publish data about their gender pay gap on a Government website.  The results, released in April 2018, showed that there are still stark differences in the amount women get paid compared to men and also in the proportion of women on higher incomes within organisations.  The median pay for women is nearly 10% lower than for men and some 78% of organisations pay men more than women overall.  Smaller organisations, with less formal pay structures may have even greater variances.

Some 50 years on, it is less likely that a woman will be paid less for the same job, although the recent revelations about the pay of BBC staff demonstrates that this still exists. However, some of the pay difference can be attributed to the fact that women are still more likely to take part-time and lower paid jobs which they can work around other commitments.  This may be by choice or by necessity.  Career breaks also have an impact on overall salary.  However, there are still many structural inequalities of opportunity and social barriers that hinder progression for those women who wish to progress.  Such barriers include expectation to attend early morning or ad hoc late meetings, ‘golf course’ business networking events, requirement for overseas travel when promoted and, more subtly, expectations from friends and family – I don’t recall any well-meaning friends questioning my husband about his family loyalties when he had to work away from home, for example….

Until societal views permit both men and women to choose whether they want to work full or part-time, progress up the ladder or not or take parental leave or not, then I suspect any legislation will have limited impact on these statistics.

Contact June at june.dennis@staffs.ac.uk 

 

Recent Trends in Microfinance

The term Microfinance is derived from the word microcredit which means “small credit” in simple terms. However, with the expansion of services from Microfinance Institutions (MFIs), different people, agencies, and institutions have defined Microfinance differently. Generally, microfinance is defined as the provision of financial and non-financial services from microfinance institutions to low-income households and small business who were excluded by commercial banks.

The term Microfinance now covers a wide range of product and services such as microloans, savings, insurance, and remittance. Some scholars believe that the first formal microcredit institution was “Grameen Bank”, which was established in 1976 in Bangladesh by Dr Muhammad Yunus, a Nobel peace prize winner in 2006.

The term Microfinance covers a wide range of product and services such as microloans and savings.

The institution was set up as a non-profit institution to provide small credit, especially to women in the rural part of Bangladesh because it was difficult for them to receive loans from commercial banks. Over time, Grameen Bank grew in popularity and customer base and more MFIs started to emerge following the Grameen Model.

What is the Grameen Model?

The Grameen Model was created by Grameen Bank of Bangladesh which has currently the widest replication in many developing countries across the world. In Grameen model Five unrelated, self-selected prospective borrowers are formed and required to make a savings deposit and payment on a loan at given period. The institution does not evaluate these loans as individual loans but as group loans and also leaves members to do most of the management and financial services.

First, two members of the group will receive the loan and then the group members determine the rotation of access to credit, and after timely repayments, an additional two members receive loans. If any member in a group fails to make an installment payment on time, then the borrower or group will be cut off from the future borrowing. However, if the borrower/group makes payment on time and in an orderly manner then bigger loans are granted in the future.

The Grameen model provides credit to the very poor in rural areas without requiring any collateral. The model also has low transaction costs and focuses on women. The Grameen Bank approach is currently being applied in many countries. A few of such countries are Bhutan, Bolivia, Burkina Faso, Chile, Guinea, India, Indonesia, Kenya, Malawi, Malaysia, Mali, Nepal, Nigeria, Pakistan, Peru, Philippines, Sri Lanka, Vietnam and Zambia Some developed countries like Canada, France, and the U.S., have also adopted a version where it is being used to help people become income generators.

Trends in Microfinance

Microfinance Institutions (MFIs) have had global influence and spread around the globe because microfinance has been regarded as one of the effective tools for fighting poverty. Initially, MFIs depended on donations, grants and government subsidies. However, in last decade, some microfinance institutions have realised that they might need to make a profit to provide continuous service, cover their administrative, financial and operational cost, and also budget for the future development without needing any government funds or donations.

In recent years, MFIs have been focusing slightly more on their financial side and as a result, the industry is moving towards profit-oriented MFI’s which means that these MFIs are applying market-based principles. This implies that we have had three stages of MFI’s since their conception which can be seen from the following figure.

Trends in Microfinance Institutions

Some of the first microfinance institutions to adopt the profit-orientated approach were Bank Rakayat Indonesia (BRI), K-Rep in Kenya, Mibanco in Peru, First Microfinance Bank (FMFB) in Pakistan, and CARD Rural Bank in the Philippines. Similarly, PRODEM, the leading Microfinance NGO in Bolivia, transformed into a financial bank called BancoSol.

In conclusion, although MFIs were established as non-profit institutions to provide social services, it seems that microfinance institutions are becoming more like profit-oriented institutions for various reasons.

Sanjib Sherpa (sanjib.sherpa@research.staffs.ac.uk) is currently undertaking his PhD study at Staffordshire University in the area of Microfinance under the supervision of Dr Tolu Olarewaju.

Free training for over 50’s!

Have you got to that point in your life where you feel its time for a change, a new direction, new job or new career? Well self-employment can offer a more flexible form of working, that may allow older people to stay in work for longer. Age UK says that older workers are more likely to have a higher chance of success with over 70 per cent of these businesses lasting over five years.

Still not convinced, well one of our Silver Worker trainees is a lady who through illness had been unable to work for the latter part of last year. She says it made her think about where she was “after over 60 years on life`s highway” and where she wanted the next part of her journey to take her.

She signed up for the Silver Workers free business start up training and has now taken the next steps in achieving her goal. She said:

The Silver Workers project has been catalytic and came at just the right time to help me to look at what transferable skills and talents I have.  It started my development of ideas that could become a new business and build on my previous work and experience”.

 “I have been to three sessions so far and I have started to answer my own question, `who am I` by listening to other people in the group, speaking about my ideas and using the Silver Workers platform.  Even today I am still working with my ideas and as with any creative process there is a developing sense of where I am going but I don’t think I am fully there yet.”

 “this also helped me to understand not only my strengths but also areas that I need to work on.  My confidence is not always so good with networking and talking to people about myself and what I do, so albeit I shy away from this I know it is an area for development as I journey on with my business”

 “Thank you, Hazel, Tom and Marzena for helping me to understand that even being over 60 I can be creative and have something valuable to offer”

Staffordshire Business School have developed this project which includes face to face sessions and on-line support allowing people to work at the pace that suits them. This course will suit anyone looking to develop skills to either set up a business or looking to get back in to work The course can help to develop both the confidence, mind-set and skills in this area.

If you would like to participate in this free training, then please contact Hazel Squire at h.squire@staffs.ac.uk  or Marzena Rezska at Marzena.Rezska2@staffs.ac.uk

 

Work and well-being for the over 50s – Silver workers event 5th July

We have a free event on 5th July at Staffordshire University as part of the Silver Workers project to support over 50s looking to get back into work or start their own enterprise. There is still time to join the project.

A programme and registration can be found on this link

Speaker bios

Debbie Assinder – West Midlands Enterprise Champion

Debbie is a SFEDI/ILM Gold Accredited Business Adviser.  She has delivered business startup advice for 20 years +across the region becoming the Enterprise Champion for the West Midlands in 2015.

Debbie Assinder

Debbie Assinder

Highlights in her career include working on Birmingham City Council’s £4.2 million Enterprise Catalyst Programme, delivering on the PRIME (Prince’s Initiative for Mature Enterprise) startup support programme for the 50+, working as an Associate for Birmingham Chamber of Commerce on their national Start and Grow programme and delivering on behalf of Barclay’s Bank their “Get Ready for Business” and “Let’s Start a Business”.

Currently contracted by Innovation Birmingham on their Serendip Digital Incubation programme. Also working with Enterprise Nation, extending early-stage support to the growing number of new owner/operated businesses across the UK. Delivering workshops and events as well as providing a much-needed campaigning voice for the startup business community.

Austin Knott – Walk the Moorlands

Austin Knott; after 32 years in local government and building on his experience as a local walk leader and hillwalking representative for the British Mountaineering Council, Austin has set up ‘Walk the Moorlands’ to share his love of the hills and moors in the south west Peak District and Staffordshire Moorlands.

Participant in the Silver Worker project and who is starting his own business Walk the Moorlands.

Participant in the Silver Worker project and who is starting his own business Walk the Moorlands.

Lesley Foulkes

Lesley Foulkes studied at Staffordshire University as a mature student.  Following successfully completing her post graduate diploma in Psychotherapeutic Counselling she worked as a Specialist Mentor at the university until December 2017 and is an accredited member of the British Association for Counsellors and Psychotherapists.

Lesley Foulkes is a participant in the Silver Workers project and is in the process of setting up her own business Counselling without Walls

Lesley Foulkes is a participant in the Silver Workers project and is in the process of setting up her own business Counselling without Walls

Rebecca Loo and Fiona Uschmann  – Catch the Dream

Rebecca Loo works as an NHS Occupational Therapist with children with disabilities in North Staffs. She is also a health activist, running local and national Orthotics Campaigns (www.orthoticscampaign.org.uk) which press for improvements in the provision of braces and specialist footwear for people with disabilities.

Rebecca Loo of Catch the Dream

Rebecca Loo of Catch the Dream

The daughter of a local business man and having seen the effects of the 1980’s and 1990’s recessions, she vowed never to enter business herself. That was until she heard of how Ebola had shattered the lives of villagers in Lungi Village in West Africa. In May 2017 she and Fiona Uschmann incorporated “Catch the Dream Community Interest Company” (www.catch-the-dream.co.uk). They have been on a steep learning curve ever since as they work with the villagers to help them regain their livelihoods and dignity.

Fiona Uschmann is a PA and HR Manager at a local secondary school in Stoke on Trent. She has been involved in the yearly immersion programmes to Sierra Leone over the past 11 years with groups of sixth formers.

Fiona Uschmann of Catch the Dream

Fiona Uschmann of Catch the Dream

When immersion was unable to take place because of the catastrophic effects of Ebola in West Africa, she decided that she wanted to do more. In May 2017, Fiona and Rebecca Loo started a Community Interest Company called Catch the Dream.  Catch the Dream CIC has been working in partnership with a rural community in Bo, Sierra Leone to help them recover from the loss of their agricultural livelihood by kickstarting their farms again after they were devastated from the Ebola outbreak.

Sandra Butterworth – Business Innovation Centre

Sandra Butterworth is Director of Innovation at the Business Innovation Centre in Staffordshire which was set up in 1995 to encourage and promote Innovation in the region.

Sandra Butterworth

Sandra Butterworth will be taking about support and funding for start up businesses

During her 20 years at the BIC, she has been the Champion for Innovation encouraging everyone connected with the BIC to embrace Innovation which she believes is the way forward for local businesses as statistics show that Innovative businesses outperform their competitors.

Sandra is a SFEDI qualified Business Advisor, Member of the Institute of Business Counselling and Institute of Leadership & Management and helps companies to identify, research, develop and market their innovations. Sandra organises and delivers the BICs Self Development workshops and events on Innovation.

Tony Bickley – Staffordshire University

Tony Is a Chartered Accountant who has been a Senior Lecturer at Staffordshire University since 2016.  He has an MBA and is a Senior Fellow of the Higher Education Academy.

Tony Bickley

Tony Bickley

Prior to working at the University he previously held several managerial roles in the Financial Services industry following his early career in the Accounting profession.

His areas of teaching speciality are Financial Accounting, Taxation and Financial Services.He is a Silver worked himself – has a wife, four children, 3 grandchildren and 3 dogs!

Patricia Roberts 

Patricia has been working for North Staffordshire based Aspire Housing since 2016.  She has played a prevalent role in the development of a new Community Living Service and challenging the way people think, act and talk about Dementia. Patricia’s career spans some fifteen years in both the private and third sector which makes her well placed to meet challenges presented by current welfare reforms and an ageing population.

Patricia Roberts - Older Persons Strategy lead for Aspire Housing

Patricia Roberts – Older Persons Strategy lead for Aspire Housing

Caring by nature she is passionate about collaborating with partner organisations to ensure vulnerable customers are acknowledged and listened to. Volunteering for the Alzheimers Society as a Dementia Champion, she has helped over 500 people become dementia friends and is currently developing a network of champions within we are aspire.

Born and bred in Cambridge Patricia has a keen interest in local faith groups and encouraging people to fulfil their full potential. Patricia lives with her husband in Hill Ridware, and takes great delight in exploring the great outdoors especially if it raises money for the Alzheimer Society.

Hazel Squire

Hazel Squire is a senior lecturer at Staffordshire Business School. She is the award leader for undergraduate business courses and delivers on the `Silver worker` business start up training.

Hazel Squire

Hazel Squire

Having worked in the retail sector Hazel set up and ran her own business before returning to university as a mature student. She is currently undertaking a PHD looking to identify the barriers faced by older people thinking of  setting up their own business.

Contact details: h.squire@staffs.ac.uk Tel: 01782294985 Twitter @hazelsquire

Prof Jon Fairburn – Staffordshire University

Jon Fairburn is Professor of Sustainable Development at Staffordshire University. He teaches on the MSc Digital Marketing Management award and established the Business School twitter account @BusinessStaffs which has twice won best Business School account from Edurank.

Prof Jon Fairburn

Prof Jon Fairburn

He has previously worked on the SEE GREEN project (with senior citizens) as well as delivering on the Silver Workers project.

Sign up to the event for free on this link 

Follow the project on this twitter account @silver_workers

 

EU Strategic Partnership project

Consent to using cookies is “baked” in the GDPR

Recently, you may have noticed when you log onto a company’s website or an Application (App) like Google or Twitter, there are alerts that their terms and conditions have been revised, or their privacy policy has been updated. You might also be inundated with requests for your consent to the use of cookies when visiting their site (refer to the examples below).

Example 1: ”Cookies on JohnLewis.com

Source: www.johnlewis.com accessed 3 May 2018

These types of notices are likely due to the fact that the General Data Protection Regulation (GDRP), which was passed by the European Union in 2016 and is coming into effect on May 25, 2018.

Example 2 of www.Barbour.com/uk request for consent to using of cookies on their website

Source: https://www.barbour.com/uk accessed 3 May 2018

The GDPR is a new digital privacy regulation which standardizes different privacy legislation across the EU. It is a legally binding regulation. Ignoring it could lead to fines of 4% of a company’s global turnover, or fines up to £17.6 million (20 million Euros) whichever is higher.

Explicit and informed consent is now required if a company wants to collect any personal data about a European citizen. This is not just having individuals check a consent box on the company’s website. A company will have to inform individuals exactly where their data is going. As well, individuals always have the right to say “NO” to their data being collected, that is, a company can’t stop an individual from using its website just because the individual does not consent to the company’s collection of his or her personal data. In the past, individuals would likely agree to a trade-off, that is, you can collect my data if I can use your site or use your app. That has now changed.

The GDPR provides individuals with the right to access their own data that the company has collected and individuals also have the ability to request that their data be deleted. Companies will be limited in the amount of personal data they can collect to that which is actually needed for specified and legitimate purposes.

Example 3: www.Cadbury.co.uk’s “Accept the use of cookies”

Source: https://www.cadbury.co.uk accessed 3 May 2018

Interestingly, even if a company is based in Australia, for example, the rules of the GDPR apply to them if a European citizen visits the company’s website or uses the company’s apps. So companies will need to be compliant with the GDPR even if they are based outside of Europe.

There is also special protection for children’s personal data. Companies who offer online services to children may need to obtain a parent’s or guardian’s consent in order to collect the child’s data, unless the child is 16 or over (although this may be lowered to 13 years old in the U.K.).

GDPR Basics for Marketers:

  • Ask for consent every time you collect data from someone, including tracking cookies – if you do not get consent you cannot track or collect it. Develop a way to track consent.
  • If people supply personal data on your website, then you need to make sure you have a way to provide this data back to people if they ask for it.
  • You will need a way to delete data, if requested to do so.
  • You may need to put systems in place that can verify individuals’ ages and a method to obtain parental or guardian consent, if required.

*For more information on the GDPR, please see Information Commissioner’s Office website at: https://ico.org.uk/

*Be sure to obtain legal advice. This content is meant only for educational purposes

Fatimah Moran, Senior Lecturer at Staffordshire Business School

Undergraduate courses

Postgraduate courses

Business School Research News April 2018

Recent papers

Adnan Efendic and Geoff Pugh (2018). The effect of ethnic diversity on income – an empirical investigation using survey data from a post-conflict environment. Economics: The Open-Access, Open-Assessment E-Journal, 12(2018-17): 1-34. http://dx.doi.org/10.5018/economics-ejournal.ja.2018-17

This paper was picked up and promoted on twitter by Lars-Gunnar Wigemark (@LarsGWigemark ) who is the EU Ambassador to Bosnia and Herzegovina.

Vishwas MaheshwariPriya GuneshGeorge LodorfosAnastasia Konstantopoulou, (2017) “Exploring HR practitioners’ perspective on employer branding and its role in organisational attractiveness and talent management“, International Journal of Organizational Analysis, Vol. 25 Issue: 5, pp.742-761, https://doi.org/10.1108/IJOA-03-2017-1136

Vishwas Maheswari & Priya Gunesh (accepted for publication 2018 ) ‘Role of Organisational career websites for employer brand development’ in International Journal of  Organizational Analysis

Olarewaju, Tolulope (2017) Organising Household Consumption and Occupational Proportions: Evidence from Nigeria. International Journal of Organizational Analysis, 26 (4). ISSN 1934-8835

Almond K and Power J (2018) Breaking the tile in pattern cutting: An interdisciplinary approach. Journal of Art, Design and Communication in Higher Education, 17 (1) pp 33-50 ISSN 1474273X

Book chapters

Carol Southall has a chapter on Family Tourism in a new book – Special Interest Tourism: Concepts, Contexts and Cases (2018) eds Agarwal S, Busby G and Huang R.

https://www.cabi.org/bookshop/book/9781780645667

Carol Southall with the new book

Carol Southall with the new book

 

Jess Power has a chapter  Embedding interdisciplinary and challenge-led learning into the student experience. In: Experiential Learning for Entrepreneurship (2018) eds Hyams-SSekasi D & Caldwell E Palgrave, UK. https://www.palgrave.com/gb/book/9783319900049

Conference papers

Vicky Roberts will present her paper Understanding the role of Value Co-creation in Building New Luxury Brands: A Social Network Analysis Approach (Vicky Roberts, Stuart Roper & Sabrina Thornton). At the 13th Global Brand Conference 2-4th May Northumbria University

Angela Lawrence will present her paper Adopting Social Media For Stakeholder Engagement: A Case Of UK HEI at the Academy of Marketing Conference 2018 2nd to 5th July, University of Stirling

Tolu Olarewaju will present a paper Corruption, The Great Value Destroyer: The Role of Generalised Trust in Social Networks, Social Media Participation and Legal Institutional Quality for Corruption”. At the First Global Conference on Creating Value; at Leicester Castle Business School, De Montfort University from 23rd May, 2018 – 24th May, 2018. 

Carol Southall jointly delivered a paper with Dr Maren Viol (British University Vietnam) ‘Western-centrism in Internationalised HE Tourism Curricula: Perspectives from Vietnam’. at International Conference of Critical Tourism Studies – Asia Pacific. Held 3-6 March at University Gadjah Mada, Yogyakarta, Indonesia.

Upcoming events at the University

5th July Silver Workersover 50s conference at Staffordshire University – save the date more details to follow, please register on the link. Organised by Hazel Squire and Prof Jon Fairburn

https://www.eventbrite.co.uk/e/silver-workers-free-interactive-conference-registration-44791156555

International Erasmus Week 12-16th November

Wendy Pollard and Jon Fairburn are organising an international week on the themes Enterprise, Employability and Entrepreneurship. Please let your international partners know.

Full details and how to register on the link

http://staffmobility.eu/staffweek/erasmus-enterprise-employability-and

Funded by the ERASMUS + PROGRAMME

THE BIGGER PICTURE: BREXIT SPEECH VS DONALD TRUMP’S TARIFFS

On Friday, 2 March 2018, at the Mansion House in London, Theresa May delivered her most comprehensive Brexit speech to date. It was a speech designed to bridge the divide between Remain and Leave voters as she tried to explain Britain’s future relationship with the EU.

To international business economists like myself, this was a welcome speech, with very insightful details into how Britain was looking to trade with the EU and other countries after D-day a.k.a. “Transition Period“. The Prime Minister spoke about approaching a crucial moment in the negotiations and specified that existing models like the Norway model would not work because that would mean having to implement new EU legislation automatically and, in its entirety and would also mean continued free movement.

A Canada model would also not be suitable on World Trade Organisation terms because that would mean customs and regulatory checks at the border and damage the integrated supply chains of both EU and British firms – inconsistent with the commitments that both Britain and the EU have made in respect of Northern Ireland.

The most positive thing about the speech however was its tone. It was in many ways a call to partnership and not protectionist mantra. Mrs May is right in many aspects but in one key detail in particular.

 

When other countries seek to become part of the EU, they have to make their laws, regulations and standards align with those of the EU. In this case however, Britain is already aligned with the EU. What Britain wants is some leeway to be different in certain respects. When Britain leaves the EU, the Withdrawal Bill will bring EU law into UK law.

In the future, Parliament might choose to pass an identical law to EU law in some cases – when businesses who export to the EU indicate that it is in their interest to have a single set of regulatory standards that mean they can sell into the UK and EU markets. If Parliament on the other hand decides not to achieve the same outcomes as EU law, it would be in the knowledge that there may be consequences for British market access.

 

 

TRUMP’S PROTECTIONIST TARIFFS 

A few days after the British Prime Minister’s speech, the US President, Mr Trump signed an order for a 25% tariff on imports of steel and a 10% tariff on aluminium into the US, saying some exceptions will be made for Canada and Mexico, prompting fears of trade war. While the US steel industry is obviously happy about the plans, it seems everyone else is upset.

Recall that Mr Trump campaigned on saving US steel and aluminium jobs, which have been lost to cheap foreign imports. But these tariffs threaten to undermine decades of agreement in international trade and have split the Republican party. There was no congressional member of his own party present for the White House announcement.

The US President is planning tariffs on $60bn worth of Chinese goods, in part because of alleged Chinese theft of intellectual property – which means design and product ideas. The White House said it has a list of more than 1,000 products that could be targeted by the tariffs of 25%. Companies will get a chance to comment before they are put into effect. Mr Trump wants to cut the trade deficit with China – a country he has accused of unfair trade practices since before he become president.

Officials from China and Europe have threatened retaliation. Richard Warren, head of policy at UK Steel, said the US was a significant export market for British producers, accounting for around 15% of UK steel exports. “This really does throw a spanner in the works” he said. The European Union has indicated it could retaliate, potentially starting a trade war with the US.

 

 

European Commission President Jean-Claude Juncker said: “We will not sit idly while our industry is hit with unfair measures that put thousands of European jobs at risk.” “I had the occasion to say that the EU would react adequately and that’s what we will do.” “The EU will react firmly and commensurately to defend our interests. The Commission will bring forward in the next few days a proposal for WTO-compatible counter-measures against the US to re-balance the situation.”

It’s not just Europe and the UK that have voiced concern, Australia’s trade minister said it will distort global trade and cost jobs. He also highlighted the risk of retaliatory measures as Asian exporters sought more detail on the plans.

 

 

AN OVERVIEW

trade war is when countries try to attack each other’s trade with taxes and quotas. One country will raise tariffs, a type of tax, causing the other to respond, in a tit-for-tat escalation. This can hurt other nations’ economies and lead to rising political tensions between them. This is a form of protectionism. Protectionism is trying to use tariffs to boost your country’s industry and shield it from foreign competition.

trade war will be bad in this scenario, but Mr Donald Trump does have a point. China has been flouting international property rules and will have more to lose in a trade war. This flouting of international property rules has also resulted in a huge US trade deficit with China.

No party wants a trade war. Britain’s tone on Brexit is much softer and open to compromise. The US tone on trade seems to indicate a much tougher stance. Analysts might argue that this is because one side has more to lose than the other. Maybe what all sides need however is a more reconciliatory tone. Partnership will be better than conflict.

On Monday, 2nd of April 2018, China imposed tariffs of up to 25% on 128 US imports, including pork and wine, affecting some $3bn (£2.1bn) of imports. Beijing said the move was to safeguard China’s interests and balance losses caused by new US tariffs. The markets fell as a result, International Business Economists continue to monitor the situation.

Dr Tolu Olarewaju is a lecturer in Economics at Staffordshire University. For more information on International Business and Business Strategy courses at Staffordshire University, please visit www.staffs.ac.uk.

 

 

Using Digital to Build Your CV

If you’re anything like me, you would have read enough tips on CV building to write your own novel. But what do we really learn? How do we know that the document we’ve just spent four hours putting together is even going to get a second look from our dream company? We don’t. But if we do know what tools are available to build a great CV, maybe we’d one step closer to the dream.

Example of Canva Free Resume Template

Gone are the days that a CV format consists of a black and white document with Times New Roman font and maybe the odd line of bold. Employers want to get a glimpse of you from the first few seconds. So, my first tip, do not be afraid to be yourself and make the use of digital tools that are available.

Firstly, ask yourself which industry you are trying to enter, this is key to choosing the type of design for your CV as it has to be relevant. If you’re looking to build something a little more interesting that gives you the freedom to show some of your personality through colour and images, try Canva, a free online design tool. This has a range of templates with suggestions of content and layout, but also allows you to amend any settings to your personal taste.

On the other hand, you may be looking for a professional CV with a moving edge. Video CV’s are increasingly common particularly in the creative and also sporting sectors due to the nature of the roles. Software such as Windows Movie Maker, Apple iMovie or something more sophisticated like Adobe Premier Pro are great for editing your own footage.

Credit: powtoon.com

Finally, and this is exciting, how about creating your own animated video of a day in the life of you? Powtoon is a free online tool that allows you to create a cartoon character and tell a story of your education, experiences and skills through video. Powtoon is YouTube certified and has recently become partnered with HubSpot, meaning it’s great not only for personal development but for work related projects too. It is a simple to use, flexible tool that allows you to create approachable content and particularly for a CV, include a visualisation of a persons skills and knowledge.

A CV doesn’t have to be a chore, take the opportunity that digital has given us to explore creative ways to present yourself as a professional.

Author: Kathryn Taylor, MSc Digital Marketing Management Student

Digital Marketing Assessor at Total People Ltd