Hearts & Minds: The lighthearted quip that ended a career

Japan’s farm minister has resigned after making a joke. Taku Eto made light of the country’s cost-of-living crisis, with the soaring price of rice a central concern. He never had to buy the staple because his supporters give him ‘plenty’ of it as gifts. Cue apology, admission of going ‘too far’ and his departure.

His fall shows you cannot make light of something that is serious and impacting people’s lives. Do not even think of going there. Some might find you humorous; others will not – and most likely they will be the ones whose voices resonate the loudest and are heard.

Try and raise a smile, but if what you’re saying highlights an emotive, sensitive issue, such as the gulf between rich and poor - and you and your company are wealthy - you’re on dangerous ground. Please as well, do not get into arguments about the fact it was private and off-the-record – once it is out, it is out.

The classic, which should be required reading for any CEO or leader and comms teams everywhere is Gerald Ratner. There he was, head of Ratners Group, comprising Ratners, H Samuel, Ernest Jones, Leslie Davis, Watches of Switzerland and over 1,000 stores in the US, including Kay Jewelers. He could do no wrong. He was a genius, a true retailing titan. Except.

In a speech to the Institute of Directors, Ratner observed: ‘We also do cut-glass sherry decanters complete with six glasses on a silver-plated tray that your butler can serve you drinks on, all for £4.95. People say, “How can you sell this for such a low price?” I say, ‘because it's total crap.’ He added that one of the sets of earrings was ‘cheaper than a prawn sandwich from Marks and Spencer’s, but I have to say the sandwich will probably last longer than the earrings.’

Someone taped him and passed it to a newspaper. When the storm hit, he made a guest appearance on a TV chat show, in which he apologised and explained he was just having a laugh. It was behind closed doors and was not intended for public consumption. He blamed the media for being too aggressive and deliberately misintpreting what he said. No matter. Customers stayed away, the shares plummeted and Ratners nearly collapsed, Ratner departed and the group was sold.

Not for nothing is his demise called ‘doing a Ratner’. Never forget.

Chris Blackhurst is one of the UK’s foremost business journalists. He was previously Editor of The Independent and City Editor of the Evening Standard.