RESPECTED left-wing columnist and author Owen Jones told the south’s business leaders that a fairer and more ethical approach to business would pay off in the end.

Owen, the keynote speaker at Business South’s annual conference, began by addressing the question of bosses’ soaring salaries.

He cited the example of Dan Price, boss of a US financial services authority who raised the pay of his 120 employees to a minimum of $70,000 after reading about the damage to wellbeing caused by low incomes. Dan also slashed his own salary from $1 million to $70,000.

The move increased staff morale, loyalty and productivity and resulted in greater customer satisfaction.

Owen claimed the introduction of the living wage would do the same in the UK provided businesses didn’t withdraw employee benefits to help cover the cost of the pay rise.

“Some firms have cut back on staff perks and George Osborne has talked about naming and shaming these firms,” said Owen.

“He is aware of public opinion and the rise of the ethical consumer.”

Anger caused by the economic crash has yet to go away. Since 2008 many people have exercised restraint and accepted falling incomes, but that restraint has been lacking in the boardroom – in 1998 the average chief exec’s salary was 47-times that of the average employee, in 2015 it was 183-times the average.

Owen asked whether the boss of BP really needed to earn £14 million and questioned the mantra that firm’s needed to pay top dollar to attract top talent. He argued that appointments made from within were more successful CEOs as they knew their firm’s strengths and weaknesses.

Astronomical salaries were “bad for society and bad for business” as they disincentivised investment and rewarded short-termism he said.

“There is a feeling that those at the top abide by a different set of rules to everyone else,” said Owen.

Nowhere was this more evident than in the case of tax where huge companies used loopholes to avoid tax while smaller companies were punished by HMRC for any irregularities, putting them at a even greater disadvantage against their giant rivals.

Owen said one of the greatest challenges facing society was the housing shortage but this was also a great opportunity.

He said that there were five million people on social housing waiting lists, many of them young people.

In London a quarter of households claimed housing benefit while in work.

Building affordable houses would create jobs and cut the benefit bill.

“What is good for society and working people is good for business in the long run,” said Owen.