Why doing the right thing works

Written by
Rowan Gormley

Published
19 Oct 2016

19 Oct 2016 • by Rowan Gormley

What I like to think we are doing differently at Majestic and Naked is delivering that growth in a sustainable way – in other words, doing it in a way that we can repeat year after year.
 

I believe that to create customer loyalty you first need to do the right thing by everyone involved in your business. By doing that you create a virtuous circle which is self-reinforcing and creates compound growth:

1. Doing the right thing drives:

2. Extreme customer loyalty, which generates:

3. Cash, which can be invested for growth and attracts:

4. The best people and suppliers which enables us to:

5. Do the right thing...

Why share the benefits? 

It is very fashionable to claim to be profitable and nice. We don’t go along with that. We believe you have to be nice to be profitable.

The reason why I chose to distribute my share of our long term incentive plan to staff is because it increases value of all shareholders, of which I am one:

-       I believe in this business, I believe in what we’re doing and I believe in the people – that’s why I already own over 6% of the company
-       I want all our people to believe in what we’re doing and to do that you don’t just reward those at the top
 
I believe we’ve offered our people one of the most democratic share schemes out there, because every employee is entitled to growth in shareholder value. If Majestic and Naked Wines are to be the businesses we plan them to be then everyone needs to be part of that journey – it’s as simple as that.