It is no surprise that Sports Direct has recently come under heavy criticism from politicians and the media, this paper in particular (HMRC should investigate Sports Direct, says public accounts chief, 16 December). But if we are going to understand why the company seems to pay such little heed to matters other than cost, we have to trace the problems back to an often overlooked element: corporate governance.
The fundamental issue is that there does not appear to be any effective independent oversight of Mike Ashley, who – as the majority shareholder – sits on the board and controls the company. While condemnation in the House of Commons raises public awareness, for real, long-lasting change for the good of all shareholders and employees, a radical overhaul of Sports Direct’s governance must take place. This is not a simple question of more regulation – it must begin with the institutional investors, the large fund managers who have continually backed Sports Direct over the years irrespective of their governance or working conditions. They must take up the challenge and engage with the Sports Direct board.
If they do not, a wholesale change in the behaviour of the largest sports retailer in the UK is very hard to imagine.
Oliver Parry
Senior corporate governance adviser, Institute of Directors
• Sports Direct is accused by Chuka Umunna of having “a culture of fear in the workplace that we would not wish to see elsewhere” (MPs and City chiefs turn on Sports Direct, 15 December). While Sports Direct may be a more extreme version, be under no illusion that there are already plenty of examples “elsewhere”. As long as we are prepared to tolerate, in the name of entertainment, the bullying examples on TV’s The Apprentice, this attitude will be seen more and more as an acceptable way to conduct business.
Phil Raybould
Hayling Island, Hampshire
• Business minister Nick Boles notably failed to unequivocally condemn Sports Direct, and tried to justify any failure by HMRC to investigate such working conditions. No surprise there, given that his government’s policies have aimed at producing just such working conditions as widely as possible, and HMRC staff have been drastically cut, presumably to make it easier for the Tories’ business friends to avoid investigation, under the guise of “reducing red tape”.
Joseph Oldaker
Nuneaton, Warwickshire
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