Whether arising through the credit crunch or growing awareness of climate change, many commentators around the world are now questioning the extremes of unregulated capitalism. It does seem that many organisations, have been financed and incentivised in such a way as to very heavily weight the benefits of short term wealth creation to a very small elite, in the belief that this is the only way in which success can be guaranteed. This culture does not automatically lend itself to supporting the business partners, employees, communities and natural environment which also gave rise to this wealth.
More enlightened organisations, have correspondingly seen the need to implement some form of structured Corporate Social Responsibility policy through which to engage with more aspects of society. In doing so paradoxically they often enhance both their reputation and wealth earning potential.
In addition, there are also a number of comparatively low profile businesses in the UK which specifically operate with long term values and with a view to sharing the rewards of wealth creation. In these organisations many of the principles of CSR and employee engagement are deeply embedded in their ownership, funding and corporate governance.
A number of long standing private family businesses adopt these principles and in doing so have managed to resolve the common problem of both shareholder and management succession. Other better known retail organisations such as the John Lewis Partnership or the Co-Operative movement have found a degree of financial independence, longevity and long term success through differing models of co-ownership with customers, suppliers and employees.
The platform provided enables these companies to take a long term view of investment and growth and the engagement of their employees and business partners helps them both to innovate and ride out difficult economic conditions.
WT Burden aims to be another such organisation. Although founded in 1929, since 1984 Burdens has been co-owned by the combination of a charitable foundation and its employees. Almost every one of the company’s 1000 employees are now shareholders and all will shortly have elected representation on the board of the company.
The resulting incentive to jointly grow the business has lead to a strong focus on developing the specialist civil engineering and drainage distributor business for which the company was well known in the South West of England. The business has grown geographically to cover the UK and also through adding related new products and services for its customers. Turnover has grown from just over £20m in 1984 to the current level of around £340m with Burdens being one of the largest customers of most of its suppliers and enjoying strong relationships with leading civil engineering and utility contractors. The company is now expanding internationally in both the UAE and Australia.
In the UK Burdens has 50 large distribution depots from which virtually any post code is within a 2 hour drive. The company already holds extensive stocks at most of these locations of the majority of materials which a utility uses. Consequently, utility contractors can benefit from just in time deliveries to site or the ability to collect packages of material, ensuring their gangs spend the maximum amount of time on installation.
When compared with the cost of a dedicated logistics resource, whether run by a contractor or the utility itself, Burdens is able to offer a price based on marginally costing an existing resource and generate demonstrable substantial net savings. Employee shareholding ensures a strong commitment to delivering flexible and safe tailored solutions.
The resulting supply chain efficiencies reduce both cost and carbon footprint. In addition, Burdens works continuously with key partners to bring innovative new environmental construction products and systems to the market and these in turn can offer clients and customers further commercial and CSR benefits.
Over the past twenty five years since the creation of the co-ownership structure, Burdens Charitable Foundation has been able to donate in excess of £5 million to a combination of UK and overseas charities. In the UK, BCF works with the company’s employees and business partners to support local charities in the communities where the company operates. Overseas it concentrates its efforts on the alleviation of extreme poverty mainly through supporting educational projects.
In this way, those who work for and with Burdens should also enhance their own CSR and help to improve the quality of the world in which we all live.
