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Some countries are wealthier than others. The average income in the US, for example, is almost a third more than average income in Sweden.

Some countries are less equal than others – in the US the top 20% earn nine times as much as the bottom 20% but in Sweden the top 20% earn only four times that of the bottom 20%.   

Here's the surprising thing: by almost any measure you care about – health, life expectancy, education, crime, social mobility – the countries that do best are not the wealthiest ones, but the most equal ones. If you live and work in the UK here's why you should care and what businesses can do about it.

If you compare the UK to other developed countries in terms of national income per person, it's about in the middle – not so very different from France, Germany and indeed Sweden. But if you compare it in terms of inequality, it's the second most unequal country in Europe (after Portugal). In the UK the top 20% are seven times more affluent than the bottom 20% - not as unequal as the US, but a lot less equal than France (5.5 times), Germany (five times) and the Scandinavian countries (four times). The consequences of the UK being a rather unequal society are somewhat frightening - take a look at these charts which show the relationship between income inequality and child well being, obesity, mental health and trust.

Child well being

Obesity

Mental illness

Trust

Do you really want to live in a society where child well being is low, obesity is high, mental illness is common and trust is low?

What's this got to do with business and leadership? As leaders, we help to define the kind of organisations we lead. These organisations in turn help to define the kind of society we live in. If we create organisations ruthlessly focussed on making money, with enormous rewards for a few senior managers and owners, we help to create an unequal society where everyone suffers. If, on the other hand, we create organisations where the financial rewards are shared fairly amongst all the stakeholders – employees, customers, investors, partners and society, then we help to create a society where everyone benefits. That is exactly what authentic leaders strive to do.

 For more information on this topic visit www.equalitytrust.org.uk or take a look at The Spirit Level, by Richard Wilkinson and Kate Pickett, (Penguin 2009).