The UK risks a second, more ''brutal'', recession unless companies address the problem of 'fat cat' pay, experts warned yesterday.
John G Smith, a financial commentator and author, claims Britain could face another ''almighty crash'' if bonuses of ?1million or more continue.
He claims ''short-sighted'' businesses are lining executives' pockets with ''much-needed'' cash, when they should be saving it, or re-investing it, for a rainy day.
But Mr Smith, a financial director, accountant and strategic adviser based in the East Midlands, said there was still time to prevent a financial meltdown - if companies adopted a more 'spiritual' way of working.
Speaking yesterday, the author of 'Wise up on business & finance' said: ''The current meltdown in the financial markets may be blamed on banks and governments, but at its heart it represents what could be termed a 'spiritual' emergency.
"The economic crisis has not happened overnight but has been building by small degrees over decades as we have lost sight of the real role of business in the world.
"Modern capitalism has made an art form out of greed and short-term gain. As a result everyone suffers, including the executives who are selling their souls for profits. It can't continue the way it's going."
Mr Smith had a ''highly-lucrative'' career as a management consultant for international accounting firm Price Waterhouse Associates.
But despite his own commercial success, he warns that today's businesses could ''implode'' unless executives stop "selling their souls" for quick returns.
Mr Smith insists that companies should adopt his own, “spiritually honest” approach, to trading.
The 69-year-old now believes that entrepreneurs and senior executives are on the "road to personal and professional ruin" by ignoring a spiritual dimension to commerce.
"When I was younger I went against my intuition and worked for money rather than personal satisfaction. I didn't believe in what I was doing but stayed to reap the financial rewards.
"Now I am content to do business I believe in and am happy to walk away from anything else, regardless of the pay cheque."
Mr Smith continues to be involved with companies but argues that working only for short-term gain is not only counter-productive to business but also the world in general.
He said: "Trade is all about connection, but capitalism in its current form is divisive. It divides the businessman from self-fulfilment, the customer from the product pusher, the company from community and globally, the rich from the poor.
"The results are millions in debt, soulless inner cities and, in the Middle East, terrorism. Meanwhile, technological advancements have exploited natural resources to the point of environmental disaster.
"Considering people as people can reverse this damage and lead to greater satisfaction for companies and customers alike."
In Wise up on business & finance, Mr Smith offers a back-to-basics guide to financial accounting and practical corporate survival tips for the junior executive.
He added: "A spiritual approach is not just good practice but 'essential business'.
"The growing success of small customer-orientated businesses at the expense of faceless corporations shows the way forward.
"It's all about making a genuine contribution to the world and sharing your fulfilment with customers, suppliers, shareholders and employees alike.
Wise up on business & finance is available now from Amazon UK, priced ?4.99.
