Big firms face crisis of trust

[davieG]

Big UK firms face a "crisis of trust" and the next government must prioritise better ethics, a lobby group has said.

In a survey, the Forum of Private Business (FPB) found that over three-quarters of respondents think big firms put profits before ethical standards.

Tax avoidance, treatment of suppliers, and late payment were all areas of concern, the ComRes poll of 2,000 people found.

Politicians must stand up for people who play by the rules, the FPB said.

The survey also found that 74% of respondents agreed that the majority of big businesses have no concern for small business owners in the UK.

And 76% agreed that the next government should penalise big businesses that act unfairly towards small businesses.

The survey commissioned as part of the FPB's Business Ethics Pledge, calls on big companies to commit to a five-point plan to protect and promote small firms in the UK.

FPB chief executive Phil Orford said: "The view of the British public is clear: we are facing a crisis of trust in big business and the UK wants the next government to respond accordingly, safeguarding the UK's small business community.

"From tax avoidance and high street domination to late payment and supply chain abuse - every week our members tell us that some of the biggest names in British business are threatening their livelihoods."

'Honest workers'

Criticism of the activities of big companies has risen sharply in the last couple of years. Allegations of tax avoidance, deliberately forcing firms out of business, and squeezing suppliers with demands for money, have formed headline news.

Mr Orford said: "There must be a balance between the need to attract the world's biggest companies to Britain, ensuring we have the best environment for business, and protecting the interests of the UK's hardworking independent small business people.

"It is time for Britain's honest workers who play by the rules to have their say and it's time for their interests to be heard."

Last week, the Archbishop of Canterbury, Justin Welby, joined the debate over business ethics, arguing that big companies should consider how they could better use their powerful positions to support society.

[johnny the fox]

Same as it ever was...the idea that removing red tape and any burdens on big business would free them to act in the best interests of the country is laughable.

[davieG]

In the past the big moguls of industry may have got richer on the backs of low paid badly treated workers but at least they were philanthropic. some present day ones maybe but i guess no one at any level of industry is looked upon in a good light.

 

It's the times of nonentity done FA celebrity.

[Jon the Hat]

In the past the big moguls of industry may have got richer on the backs of low paid badly treated workers but at least they were philanthropic. some present day ones maybe but i guess no one at any level of industry is looked upon in a good light.

 

It's the times of nonentity done FA celebrity.

 

These days though, we don't have nearly as many super rich business owners, and amongst those we do have there a plenty of philanthropists.  Most of the ownership is with our pension funds.  People need to decide where to invest their pensions based on more than the financial returns if we are going to see different behavior from big business.  We are the shareholders, and we are AWOL from the decision making process.

[ousefox]

Nothing will change unless there's a massive reaction from customers to something. Starbucks moved their European HQ to London and voluntarily paid around £10m to the UK I think after their tax avoidance became big news.

 

A lot of customers are very passive about ethics, especially when they are getting products so cheap and they don't have much cash themselves. 

[Captain...]

Nothing will change unless there's a massive reaction from customers to something. Starbucks moved their European HQ to London and voluntarily paid around £10m to the UK I think after their tax avoidance became big news.

A lot of customers are very passive about ethics, especially when they are getting products so cheap and they don't have much cash themselves.

I think people are were more active in responding when companies were exposed as lacking in ethics. Nowadays so many companies are fiddling their tax and exploiting cheap foreign labour that you're in a no win situation.

I do buy cheap clothes from primark, I could spend more elsewhere but there is no guarantee of better manufacturing conditions or quality.

http://www.theguardian.com/business/shortcuts/2012/oct/17/boycotting-tax-avoiding-companies

This sums up the problem with trying to shop ethically and it gets to a point where consumers just stop caring and think about their pocket.

[Stadt]

Businesses are unscrupulous, shocker.

[SMX11]

Same as it ever was...the idea that removing red tape and any burdens on big business would free them to act in the best interests of the country is laughable.

The whole point of de-regulation is to allow sme's not be to unfairly burdened and unable to compete with larger firms. More regulation will only result in the big companies get bigger (see the banking sector).