Blog
The role of shareholders
9th March 2008
How does ownership affect the running of a business. The Bottom Line this week looked at the relationships between senior managers of businesses and the shareholders who own the companies they run. The guests on the programme included Sophi Tranchell Managing Director of Divine Chocolate who is speaking at our Business Conference at the British Library in July.
45 per cent of Divine Chocloate is owned by cocoa growers in Ghana, the idea was first created by the success of the Cafe Direct model. There is one board meeting in Ghana each year along with three in the UK. Most of the cocoa farmers have never tasted chocolate! When people in the supply chain are part owners of a business, continuing to sell rising volumes of the product is the most important incentive, there is little pressure on the business to diversify.
Gavin Slark CEO of BSS has a different ownership structure with Schroders the dominant institutional investor and the programme also includes contributions from Andrew Tinkler CEO of the legendary road haulage business Eddie Stobart. Evan Davis quizzes his guests as to whether investors really understand their businesses. Are managers servants of the shareholders or educators?
The Bottom Line is always available as a weekly download from iTunes and previous programmes are archived on the BBC web site.
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.