Alistair Phillips-Davies

Almost a decade on from the financial crisis there are still big questions being asked about business’ role in society.

With tax scandals and low wage debates played out against the backdrop of company profits that people sense are ‘made’ and not ‘earned, companies are still being defined as bad guys. To customers, bad firms damage the environment, avoid their taxes and pay unfair wages.

The Scottish business and financial communities have been debating what good corporations look like in modern society. We don’t claim to know the answers but we know we need to ask the question and challenge ourselves to do more.

We asked ourselves if a business does no harm, does that alone make them a good corporation? Personally, I don’t think that’s enough. Clearly all companies need to abide by the law but responsible companies also contribute positively to the societies that enabled them to be successful in the first place.

At SSE we know that energy companies have a particular responsibility as we provide an essential service. I know that SSE’s customers want good value energy and great service, but customers also, rightly, expect us to pay our taxes and pay fair wages.

So we’ve got our house in order by working with the likes of the Living Wage Foundation and the Fair Tax Mark to achieve their standards, as well as concentrating on providing energy and delivering good service.

But I also think people want us to be mindful of some of society’s greatest challenges and use the might of a large firm to help play a part in tackling some of them. Here, I’m afraid; we are only just getting started – but I’m certain it’s good business sense to do it.

I was inspired by a recent example that makes a dent in the issue of long term youth unemployment. SSE and Barnardo’s have been working together since 2007, giving young people on Job Seekers Allowance a supported opportunity to get on the career ladder.

We recently evaluated the programme and it shows an overwhelming return on that investment – not just for the individual and wider society – but for SSE too. It provides a new pipeline of talent. It helps us recruit through a non-traditional route, and brings further diversity into the group – which is critical in a hugely customer-facing sector.

We realise many companies are doing little bits here and there. Whilst we don’t have all the answers, the genuinely successful approaches are where the action makes good business sense

SSE’s anti-tax avoidance position tells investors that we manage risk. The Living Wage brings about a higher employee retention rate and lower absenteeism. Our work with Barnardo’s is helping tackle issues we face; an ageing workforce that’s not reflective of the communities it serves. In other words, each of these interventions has direct business benefit – it is both self-interested and in the public interest.

They’re not fads or quick fixes. They’re long term, sustainable actions that marry delivering for customers, for employees and for the society SSE is part of. To my mind this is where my company and others have to place more focus if we’re to make a strong contribution to the world on which we depend.

Alistair Phillips-Davies is chief executive of SSE