Organisations both small and large are embracing more far-reaching objectives in the emerging Environment, Social and Governance (ESG) business standards.
I believe it increasingly important that local authorities, and their service providers act positively and ethically to protect the ongoing security of staff, suppliers and clients, despite the difficulty over the coming months as the economic environment deteriorates.
Sometimes it is necessary for organisations to take short-term pain to ensure long-term survival and prosperity – by which I mean that taking decisions which affect the immediate perception of a business's sustainability, adversely impacting its reputation or affecting its value, may at first seem counter-productive, but in the long run it can pay significant dividends.
A company's brave decisions, although immediately unpalatable, can be necessary to ensure its long-term survival, and thereby the ability to continue to provide secure employment for its staff, and support the wider community.
With these factors in mind, the Norse board has decided to include a significant impairment in the company's statutory accounts; this will adversely affect last year's financial results, but it will strengthen the company in the long term. This type of writedown is considered good practice, and as a non-cash item any impact is only superficial.
We are only able to do this because we enjoy strong cashflows and a robust balance sheet, but it means that our long-term contribution to society will not be compromised, and our local authority partnerships will continue to share in the company's success. Norse Group is now in a position to prosper, protecting high-quality jobs and returning millions of pounds to the public purse every year.
Over the coming months we will find the trading environment extremely challenging, but it is important we do not forget about the long-term, and that we do our best to make the right decisions – even if that causes us short-term pain.
Justin Galliford is Chief Executive Officer of Norse Group
For more information on Norse partnerships, visit www.norsepartnerships.co.uk
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