Community, Consumers

The last thirty years have witnessed major social and economic change in the UK - and with it a dramatic decline in public faith in profits. In 1970, the public agreed by two-to-one that the profits of large companies help to make things better for everyone who buys their products and services. In 1999, the public disagrees by two-to-one. This remarkable switch-round is demonstrated in Table 1.

Traditionally, companies have been judged by their profitability and quality of products or services, but now softer values are coming into play, specifically social and environmental responsibility. Four-fifths of the public believe that "as they grow bigger, companies usually get cold and impersonal in their relations with people".

Today over two-thirds feel that "industry and commerce do not pay enough attention to their social responsibilities". And the trend in recent years has been towards higher expectations. As Table 2 illustrates, supporters of current company activity in this area have held constant at around one in ten; those unhappy have risen from under two-thirds to nearly three-quarters.

However, public belief that business has a role in society is strong. For example, two-thirds feel that "large companies are essential for the nation's growth and expansion". The efforts of community affairs professionals appear to be winning through. As Table 3 illustrates, knowledge of specific companies helping the community is rising. Over the same time period, support for locally based projects has risen, at the expense of national projects.

The lesson from the data is surely this: at a time when people don't feel profits alone make an adequate contribution, companies must continue to address their social and environmental impact.

Table 1. The profits of large companies help make things better for everyone who uses their products and services

    agree    disagree  gap

1976    56      31    +25

1978    56      32    +24

1980    56      31    +25

1982    40      48    -8

1984    39      43    -4

1986    40      41    -1

1988    38      41    -3

1990    36      44    -8

1992    34      44    -10

1994    27      49    -22

1996    26      50    -24

1998    28      51    -23

Table 2. Industry and commerce do not pay enough attention to their social responsibilities.

      agree    disagree

1993    64      9 

1994    64      8 

1995    68      9 

1996    66      8 

1997    68      9 

1998    71      9 

Table 3. Are you aware of any cases of particular companies helping the community or society in any way?

Yes

1991    25

1992    24

1993    25

1994    30

1995    32

1996    33

1997    33

1998    34

For more information, contact Charlotte Hines at MORI on 0171 928 5955

Corporate Citizenship Briefing, issue no: 45 - April, 1999