In the UK, the rising cost of food and fuel is heavily debated in the media and political arenas these days. Perhaps the situation is similar in countries around the world. Are we bothered?

According to Jay Rayner, journalist for the Dispatche s programme broadcast this evening, the problem is not that food prices are going up dramatically; the problem is that food prices have been too low for too long in countries like the UK.

Food for thought?

How much of your salary do you currently spend on food?

Living in London, I spend about 10% of my salary on food. If the price of food doubles, I will be spending 20% of my salary on food. I will still be able to afford to eat even if the price of food triples. However, in developing countries, where people currently spend over 50% of their salary on food, the doubling or tripling of food prices will of course mean that people will no longer be able to afford enough food to meet their needs.

Can you imagine a situation where we have to spend over 50% of our income on food? I cannot. This leads me to contemplate on the message in the Dispatche s programme this evening: food prices have been too low for too long in countries like the UK.

Similarly, have you noticed that the price of clothes has been going down so fast in recent years that it is now quite normal to buy T-shirts and tops for £2 in stores such as the pervasive Primark retail store. My teenage students, most of whom have never worked a day in their lives, can afford to dress in quality outfits, crafted by children earning 50 pence per day in the slums of India. When I see these low income, inner city students, in yet another fancy outfit, I have this conversation in my head:
"What, you didn't know they used child labour to manufacture those clothes for Primark?"
How can you buy an outfit for £2 and not know?

How can you boast that it is cheaper to throw away your clothes after you've worn them a couple of times than to get them cleaned, and claim that you did not know the amount of exploitation that was required to meet your desires?"

The primary purpose of most businesses is to make maximum amount of profit at least amount of cost and both India and China have proved lucrative hosts for western companies such as Primark to meet excessive consumer desires at increasingly competitive prices.

The twist in the business tale occurs when we consider ethics and the power of the media to move our conscience. Just one powerful documentary, one video clip can turn a boastful business remark into a cause for embarrassment and guilt.

Primark boasts that it cuts costs of production through minimal spending on advertising. However, in response to the BBC Panorama documentary on the use of Indian child labour for its clothes production, Primark sacked three Indian suppliers implicated in the breach of ethical standards. No doubt this caused hundreds of job losses in the local area concerned.

What would you have done?

The fundamental economic questions are "What to produce; how to produce it; for whom?" What questions do you ask yourself as a consumer? What to consume? At what price? Where to get the product from? In a free market, our decisions as consumers are expressed powerfully each time and each place we make a purchase.

Happy shopping!


Jesvir

Usually I write about my personal thoughts/ideas on a topical business issue. This time I am adding a link to a live broadcast I did for Westside Radio last week, accompanied by 4 of my teenage business studies students. The show host asked us to speak about the importance of character in business; how to create powerful teams and deliver effective presentations. She also asked us to justify the importance of a business education. Our answers to these questions are available at this link which will take you to the recording of the radio broadcast:

Westside Radio

In the past, there was a distinct gap between academics and the business world...people went to university to become professionals with "jobs for life" and setting up a business was seen, for many, to be the choice for non-academics. Regardless of whether you are a professional or business person There is a great difference between doing a job to pay the bills and doing work that is fulfilling and rewarding. Doing a job that bores you or stresses you will impact on every area of your life just as doing work that constantly inspires you will. Three of my respected coaching friends have created a free special audio called 'Discover Your Calling' to share what they have learnt on the path towards creating fulfilling work. You can hear this free recording by clicking the following link: The Money Shaman
Let me know your thoughts on the Westside Radio show and also the Money Shaman recording when you have had a chance to listen.