The state of capitalism is in desperate need of reform and modernisation – according to some of the UK’s top business leaders – who claim that the system has been hurt by management greed – corporate tax dodging and investor short-termism.
Speaking on a panel for the Financial Times – former minister Baroness Shriti Vadera who is now chairwoman of Santander UK said that ‘the underlying promise of western capitalist economies — that a rising tide lifts all boats — has been broken’.
She said that a ‘better model’ is needed.
Others echoed her remarks.
Robert Swannell – the former chairman of retailer Marks and Spencer – said that capitalism had ‘lost its way’ and that companies and their investors had become much too focused on short termism – according to the FT.
And Carolyn Fairbairn – director-general of the Confederation of British Industry said that capitalism had taken a number of ‘wrong turnings’.
‘The financial crash – a fixation on shareholder value at the expense of purpose and the toxic issues of […] payment of tax and executive pay stand in the way of redemption’ she said- according to the FT.