Business meets politics: select committees and the role of PR for business leaders

Big business has been put under the spotlight recently, with key players from Sports Direct and BHS pulled up in front of select committees last week, and Sir Philip Green scheduled to appear at not one but two today. Sports Direct owner Mike Ashley’s performance received mixed reviews: while he responded with the chutzpah that has made him the face of Sports Direct, some commentators have questioned the impact that such a public grilling will have on the company’s reputation and share price. Does his performance show the ever increasing need for business leaders who are well versed in PR?

When the Guardian broke the story of Sports Direct’s working conditions at its Derbyshire warehouse and Ashley was ordered to give evidence, he responded by lambasting the MPs as ‘’showboating’’ and refused to appear. When he did, Ashley took the unorthodox step of bringing his PR advisor to the hearing with him, a sign that his PR team are all too aware of the publicity the appearance would generate.

Similarly, Green is facing calls to be stripped of his knighthood if he refuses to appear in parliament today, as he has threatened to do. Select committee summons give us an interesting chance to watch power plays between business leaders who are not used to being told what to do, and MPs who are not willing to take no for an answer: this is where solid PR training comes in handy.

While BHS may be past the point of saving, Sports Direct is still up and running with shareholders to be appeased. As Ashley himself has said, the media frenzy around the company has had an adverse effect on its share price, which has fallen sharply since December and continued to do so after Ashley’s performance.

MDs, CEOs and business owners are often the face of their companies: Green is synonymous with Topshop, just as Ashley is a sizeable part Sports Direct’s brand. Big personalities have helped both men get where they are: the question is whether this approach is a help or hindrance under the select committee spotlight.