tutor2u | Responsible capitalism: Greggs has been doing it for decades

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Responsible capitalism: Greggs has been doing it for decades

Geoff Riley

15th January 2020

This FT article glows about the commitment to social impact by a leading poster child for entrepreneurship in the North East - Greggs

Greggs was in the news this week for announcing a seasonal bonus to the majority of their 25,000 employees after a strong surge in sales aided by the launch of their vegan sausage roll. Year-on-year sales in 2019 rose 13.5 per cent year on year.

Rapid organic growth evident here

I was struck by this quote "Greggs gives 1 per cent of profits to its foundation, feeds 36,000 children free breakfast every school day, and provides training and work experience to prisoners at the end of their sentences."

And there is more - all of which is significant for the aim of driving responsible capitalism:

"The group has also been held up as a model employer for paying more than the minimum wage, eschewing zero-hours contracts and providing employees with regular shifts that make it easier to manage family commitments. The workforce is 71 per cent female, as are three of its eight board members."

However, we are not told what proportion of Greggs employees remain on universal credit and the extent to which some of this bonus might be clawed back by the government at the end of January 2020.

Greggs annual turnover from 2006 through to 2018

Geoff Riley

Geoff Riley FRSA has been teaching Economics for over thirty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD conferences in the UK and overseas.

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