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Home / Business

Branson: Protests a wake-up call

Grant Bradley
By Grant Bradley
Deputy Editor - Business·NZ Herald·
21 Oct, 2011 04:30 PM5 mins to read

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An audience of more than 1300 paid up to $1800 a ticket to see Sir Richard Branson. Photo / Greg Bowker

An audience of more than 1300 paid up to $1800 a ticket to see Sir Richard Branson. Photo / Greg Bowker

Sir Richard Branson says the Occupy Wall Street protests are a wake-up call for business.

The protests that have spread from New York around the world were a sign corporates needed to change their approach, the billionaire Virgin Group founder said.

He urged business leaders to take a completely different approach.

"In a sense [it's] slightly like the Wall St protesters are basically saying that we are lucky bastards to have been successful in our professions. An enormous responsibility comes with wealth - they have to get out and use that position to tackle a lot of the outstanding issues."

Branson is in New Zealand for a series of events built around last night's Rugby World Cup bronze final and tomorrow's final between the All Blacks and France.

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He flew into Christchurch to survey earthquake damage on Thursday, spoke to a packed gala dinner on that night, lent his support to a BNZ entrepreneur programme yesterday and is scheduled to visit biofuel pioneer LanzaTech's pilot plant at Glenbrook on Monday.

Branson's anti-Vietnam War activism led to his first business, a student magazine, so he could identify with the Occupy movement: "I do understand where they're coming from and I think we've got to listen as businesses. Some companies do need a wake-up call."

Obsession with the financial bottom line could fuel the protests, which so far had been small and sporadic but largely focused on corporate greed. "You take away the reason why people need to protest if companies are behaving in an ethical way," Branson said.

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This meant reinvesting in their businesses, creating new jobs, helping tackle global warming and diseases in Africa, and dealing with conflict issues.

His company in 2005 established Virgin Unite, a non-profit foundation that now has offices in Britain, Australia, South Africa, the United States and Canada with the aim of helping revolutionise the way governments, businesses and the social sector work together. The foundation has also set up The Carbon War Room, which promotes sustainability and fights climate change.

LanzaTech's work is part of this drive. The Auckland company has pioneered technology that recycles 65 per cent of waste gases from steel mills by capturing, fermenting and chemically converting them for use as a jet fuel. Branson said his airline, Virgin Atlantic, had partnered with LanzaTech, and could turn aviation from a dirty industry to one of the cleanest.

Within three years it was hoped that Virgin Atlantic planes would use the new fuel on flights from Shanghai to London and Delhi to London, and follow this with operations in Britain and elsewhere.

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"That's the kind of breakthrough New Zealand companies are capable of. This could be a massive revolution," he told the audience of more than 1300 on Thursday night. His fee for the dinner - with ticket prices of up to $1800 - will go to Virgin Unite.

He spoke about his start in business, first running the magazine and then setting up Virgin Records. He had no formal qualifications after he left school. "My training was out in the real world and having to learn the art of survival," he said.

Through diverse companies ranging from airlines to fitness centres he has amassed a fortune estimated at $5 billion.

Virgin and Bank of New Zealand have teamed up for a business challenge where Kiwi companies with the ability to go global will compete for a prize which includes $100,000 in cash, air travel and mentoring from Branson. It was launched on Takapuna Beach yesterday.

"Most likely there'll be a lot of people [with] similar ideas - what's going to make that idea different is the team of people.

"If you can gather a great team of people, you can motivate them well if you look for the best in them and if you praise them."

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Branson has been largely a work-from-home husband and father, and he said his work environment was often relaxed but reflected his changed financial circumstances.

"I work from home in a hammock when we're on Necker Island [in the British Virgin Islands]. We used to work from a houseboat, so I suppose we've gone up in the world and work from home on an island."

The 61-year-old also said bosses had an obligation to make work fun, with the pay-off being happy and committed staff.

"I think fun is an ... incredibly important part of life. Since most of people's lives are spent at work [it] should be enjoyable."

His ballooning and speedboat endurance and speed records had cast him in the role of adventurer, and were traits shared with entrepreneurs.

"If you are an entrepreneur you're trying to achieve things that haven't been achieved before. It you're an adventurer you're trying to achieve things that haven't been achieved before and trying to overcome the technological challenges."

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Branson was in New Mexico this week for the dedication of a spaceport where his Virgin Galactic passenger rockets will be based.

He said he hoped to be part of a test flight programme by next Christmas before commercial suborbital flights took off from the spaceport soon after.

His daughter, Holly, who has accompanied him to New Zealand, would be part of the test programme.

"I get wonderful butterflies. It's going to be the most exciting ride of our lifetimes and incredible that we can experience it together."

- Additional reporting by Owen Hembry

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