BHS (2)

I've just been watching the last half hour of Sir Philip Green's epic appearance before the BIS and W&P committee. The fact that he still uses a Nokia phone and a cheque book is actually quite revealing: for him, and possibly for other business leaders operating in the opaque world of private companies, the constraints within which they operate have not changed in the way that the corporate governance framework surrounding public companies has changed within the last three decades. At one point, when describing a meeting, in a smirking aside he said that that for those concerned about governance there was a non executive director present. Sadly, he did not respond to the question about what the committee might learn from the BHS debacle that could improve public trust in companies.

I was also interested that he made the point that struck me forcibly when watching Dominic Chappell in the same chair: why is it that apparently intelligent professional advisers are prepared to work for these people? It's all very reminiscent of Robert Maxwell: branded as unfit to run a public company, he still managed to surround himself with people who would back further ventures.

Banks, leading legal firms and the Big Four accountancy firms lend credibility to such people. They could do their own reputations some good by resisting the lure of lucrative fees and refusing to act for those who have benefited from business behaviour which has been to the detriment of employees, pensioners and all those who lose out when a company goes to the wall.

If Sir Philip makes good on his promise to sort out the BHS pension problems, I'll be impressed.