The Economist:
Shocking shopping
11 June 2016
PARLIAMENTARY committees are normally sleepy affairs. Backbench MPs get the chance to grill the occasional bigwig. By replying to questions succinctly witnesses typically escape without letting slip anything too revealing. Those in front of the business select committee this week took a different approach. On June 6th Mike Ashley, the boss of the Sports Direct sportswear chain, provided evidence about working conditions in his shops. He admitted that his company was under government investigation over allegations he had paid workers less than the minimum wage, ... Next up, on June 8th, were former executives of BHS, a chain of fusty department stores that filed for administration in April ... The overall impression in both cases was of a company out of control. Indeed, Mr Ashley hinted as much, admitting he may have struggled to keep on top of things as his firm grew from ''an inflatable [dinghy]'' to an ''oil tanker''. Founders who stay in charge for too long are a common problem for British firms, says John Van Reenen of the London School of Economics Centre for Economic Performance, and poor management partly explains low British productivity.
This article was published by The Economist on June 11, 2016
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Related links
John Van Reenen webpage
Growth Programme webpage
See all publications from CEP's Growth Programme here