THIS year marks the 150th anniversary of the death of Robert Owen of New Lanark. After his death in 1858 he was sometimes referred to as "the father of socialism" - although the nature of his socialism is still debated.

THIS year marks the 150th anniversary of the death of Robert Owen of New Lanark. After his death in 1858 he was sometimes referred to as "the father of socialism" - although the nature of his socialism is still debated.

Born in 1771 in humble circumstances in Wales, he rose to be a successful capitalist who invested in cotton manufacturing. During business trips to Scotland, he met David Dale, founder of the large cotton mills at New Lanark. Dale employed many pauper children, which kept down wage costs, but was regarded as a humane employer.

Owen and his partners ended up buying the mills and, in 1799, he married Dale's eldest daughter and heir. He provided better housing, safer work conditions, adult education and a shop with cheap food, developing a theory that environment shaped human behaviour. The result was fewer work accidents and delays, happier staff and greater efficiency. By 1817, Owen was a millionaire.

He stopped taking pauper children, and would not let anyone under 10 work in his mills. His established schools for children from the age of two with no corporal punishment, frequent singing and dancing and an emphasis on subjects that taught them to respect people from other countries.

Owen published his theories in A New View of Society in 1813. At this time the governments tended to be Tory and repressive, but Owen, a skilled lobbyist, won some members to his causes. Perhaps the MPs were impressed by his claim that his educational methods would create, as he put it, "a docile workforce".

He liked to present himself as a progressive and sought the approval of a well-known radical, Francis Place. Place had his doubts and pointed out that Owen did not advocate political reform, such as the extension of the vote. But Place could not deny that he was a genuine advocate for factory children.

The opposition of some factory owners meant that well-intended legislation was not implemented. However, the reformers did establish that government intervention was necessary, and the Factory Act of 1833 banned children under nine from working and reduced the hours for others.

Owen also called for independent, self-supporting communities to solve social problems. In America, he played a leading part in establishing New Harmony as a new form of co-operative living. (Unfortunately, harmony turned to hostility between participants. ) Other communities took off in England, Ireland and, in 1825, in Orbiston in Scotland. They were short-lived but members applied Owen's ideas in other directions, particularly in consumer co-ops.

As Owen aged, so he grew more visionary and identified more with the working class and trade unions. He campaigned relentlessly for the Tolpuddle Martyrs, the trade unionists transported to Australia for taking an illegal oath. They were pardoned in 1836.

Owen was not the kind of socialist who dwelt alongside those he wished to help. He lived in some style, with a host of servants. But he did pour much of his own money into his schemes. New Lanark still survives as a world heritage site, and his ideas survive as a source of inspiration.

Today, many directors insist that, in a competitive world, wages and work conditions must be kept low. (Funnily, this doesn't apply to top executives. ) Owen showed that treating staff with respect and generosity was compatible with industrial and financial efficiency. That is his legacy.