Britain's Change Of Heart On Profit
The latest edition of MORI's Corporate Image survey suggests public hostility towards profitability is waning and that two decades of animosity towards business success may be coming to an end.
Britons started to turn against corporate profit-making in 1980 and that dislike hardened during the years of Conservative rule, according to MORI opinion polling. Public hostility to profits reached a peak in 1999, in the wake of the controversy about "windfall profits" at privatised companies and excessive pay in the boardroom. In 1970, 53 per cent agreed that big companies' profits helped "make things better" for everyone, and fewer than 25 per cent disagreed. By early 1999, the proportions had reversed, with 25 per cent supportive of profits and 52 per cent against.
The proportion that backs profits is now up four points to 29 per cent, and the proportion against is down nine points to 43 per cent. That still gives a negative balance of 14 points, but at least suggests an easing of hostility.
Brian Gosschalk, MORI's chief executive, said increasing boardroom awareness of corporate social responsibility is probably playing a part.
"From our qualitative research, we have established that stakeholders want companies to make a profit but not at the expense of their staff or the community," he said.
The Corporate Image Survey also shows a change in attitudes towards corporate competitiveness at the expense of jobs. In the past year, belief that "the main responsibility of companies is to perform competitively, even when this means reducing the number of people they employ" has changed from a majority to a minority one. Correspondingly, the public now thinks that caring for employees should be the top priority for business. Training the workforce, providing more jobs and the safety of the workforce are also more salient this year.
Overall anti-corporate sentiment continues to be directed at old-established brands and companies. Now, only around two in five adults believe that "old-established companies make the best products", a significant drop from the seventies. However, declining enthusiasm for new brands is a more recent development. In the past year alone, acceptance that "new brands on the market are usually improvements over the old established brands" has fallen by six points (to 29%).
While socio-political activists have the strongest anti-corporate agenda, they are also among the most pragmatic, focusing on profitability and sound management when judging companies and seeing training and investment as key areas for business to focus on.
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Technical details
MORI interviewed 956 adults aged 15+ across Great Britain between 24-30 May 2001 for its regular Corporate Image study, part of the Key Audience Research programme. Data were weighted to reflect the national profile.
Corporate Image is one of a series of regular multi-client studies in the Key Audience Research program. Other audiences covered in the program include government: MPs and MSPs; the media: national editors and specialist press; business leaders: captains of industry; the financial community: institutional investors & analysts and business & financial press; the general public; business & the environment and corporate social responsibility. MORI also conducts ad hoc research amongst other opinion leader audiences.
