‘End vilification of industry’

President of the Confederation of British Industry (CBI), Sir Roger Carr, insisted “big business is not bad business”, and called for recognition of the importance of sectors including banking, energy and defence.

“If we are to fight our way out of this tough corner, business should be valued, not vilified,” said Sir Roger to the CBI’s annual conference.

“But... like it or not, we have some way to go in winning universal support for business.”

Sir Roger said while the direction of travel by banks, energy firms and defence giants is “positive”, businesses “must act responsibly in the way we pay ourselves, govern ourselves and conduct ourselves”.

Companies were also urged to help Britain export its way out of the global downturn at the conference, by shifting their attention to rapidly-growing economies to counter stagnant European and North American markets.

Turkish president Abdullah Gül told the audience of hundreds of business leaders in London that increasing Anglo-Turkish trade is critical for both countries, and called for a rapid resolution of the eurozone crisis to prevent a global depression.

Prime Minister David Cameron also addressed the conference, defending Britain’s deficit reduction strategy and claiming it has support from most major business bodies, including the CBI, the Institute of Directors and the Federation of Small Business.

“The message came back loud and clear from every single one: ‘Don’t divert from the essential task of getting the deficit down’,” he said.

Speaking ahead of Chancellor George Osborne’s autumn statement next week, Mr Cameron said there would be more details about a proposed credit easing scheme, using public money to reduce the cost of loans for small and medium-sized businesses.

He added there will be more detail on infrastructure plans, after the Government yesterday revealed a new housing strategy to offer mortgages of up to 95 per cent to buyers of new homes.

Mr Cameron also highlighted the planned High Speed 2 rail link, which will link London and Yorkshire, as a way to “shrink the distance between our great cities”.

He added he has held personal phone calls with wind turbine manufacturers including Siemens, which is planning an offshore wind turbine factory in Hull, to encourage investment in Britain.

He also hailed the importance of enterprise zones and their links to infrastructure schemes. “They are all connected in trying to give us the new economy,” he said.

“We put enterprise zones in areas where there’s already an existing culture of business, and get business to build on that.”

Mr Cameron and business leaders were speaking as Europe wrestles with an escalating sovereign debt crisis, which threatens to unravel the euro and further dampen demand in an area which claims 40 per cent of Britain’s trade.

Mr Gül told the conference the world economy is trapped in a “balance of economic terror”, that risks plunging into a global depression unless there is “decisive and swift” action on Europe. The EU accounts for half of Turkey’s foreign trade volumes.

However, he said the UK can capitalise on trade with Turkey, where Britain is already the second biggest investor.

Annual trade volumes between the countries reached $12bn in 2010, and so far more than 2,300 British companies have invested in Turkey.

“We are committed to move forward towards the common goal of doubling our trade volume within the next five years,” said Mr Gül.

Sir Roger told the conference the world is witnessing a “fundamental shift in the balance of world economies” which demands rapid change.

“What’s happening around us is a cultural cold shower, a move from entitlement to enlightenment, a recognition that things have changed, nothing is by right,” he said.

“Our adversity must be the trigger for rapid change in the way we educate ourselves, govern ourselves and sell our goods and services in markets outside our traditional comfort zone.

“Exporting is unquestionably the lynchpin of our economy.”

Ernst & Young UK and Ireland managing partner Steve Varley said as well as targeting exports to the BRIC countries of Brazil, Russia, India and China, firms should look to the next wave of 11 emerging economies, which include the Philippines, South Korea and Turkey.

“We’ve got the opportunity to go hard after emerging economies,” he said.

Delegates were also challenged to ensure they do not lose sight of social principles while chasing growth.

The conference heard from company leaders including Charlie Mayfield, chairman of John Lewis Partnership, and Emma Harrison, chairman of Sheffield social purpose firm A4e, which gets people into work.

Ms Harrison urged firms to “do well by doing good”.

Mr Mayfield added: “The key responsibility of a business is to offer people employment and give people an opportunity to feel valued.”

The language of success

Business leaders called for greater emphasis on learning the languages and cultures of growing economies.

UK Trade and Investment Minister Lord Green, the former HSBC chairman, said more should be done to encourage learning Chinese and Latin American languages in schools.

“We should be encouraging language teaching,” he said.

“The languages that count these days are Spanish in one direction and Mandarin in the other.

“You understand your own language better if you have some passing acquaintance with another.”

David Bell, chief corporate development officer of heavy machinery firm JCB, said while firms can rely on speaking English at the top level of business, they must have language skills at operational level.

CBI president Sir Roger Carr added firms can only be run abroad in the local language, something the Chinese understand.

“The thing that (the Chinese) have got – it’s a mindset. People there understand they need to learn English to be successful and they commit hugely to that task.

“Have the courage to go beyond your traditional comfort zone.”