'What Assures Consumers in an Economic Downturn?
Reviewing the agenda in the global economic crisis'
"Trust matters, but times of uncertainty are not easy periods in which to build trust. With consumer behaviour in flux and the economy in such uncertain territory, this new analysis from AccountAbility will prove invaluable to consumers, businesses and policy makers alike."
- Ed Mayo, Chief Executive - Consumer Focus
** Listen to the highlights from the launch including Kate Ives' opening presentation and the Q&A session with the panel **
Download | The fifth report in the What Assures? series: 'What Assures Consumers in an Economic Downturn: Reviewing the agenda in the global economic crisis' was launched on 23rd April 2009 at the Lloyd's Register HQ in London in front of an audience comprising retailers, consumer watchdogs, assurance bodies and leading corporates. The report offers a timely analysis of the changing nature of consumer trust and the impact of the credit crunch on business strategies related to sustainable development. The study is based on findings from two online surveys of 2000 people across the UK, across a range of income, age and gender groups, conducted through YouGov in December 2008 and January 2009. The report was produced in partnership with The Co-op, with support from LRQA. The event was chaired by LRQA (Sandy Sutherland). Panellists included Alan Knight and Kate Ives (AccountAbility), Helen McTaggart (The Co-operative) and Harriet Lamb (Fairtrade Foundation). |
The launch presented the key findings of the new study, which include:
- Consumers see huge “accountability gap” between those responsible for business ethics and their ability to deliver - 6 in 10 people see industry regulators as responsible for ensuring businesses behave ethically, but only 2 in 10 think the regulators are up to the job.
- 56% of the public say businesses themselves must be accountable for their own behaviour, but only 6% of people trust them to do so.
- Consumer watchdogs are the only institutions with a positive “accountability gap” – the difference between responsibility to act and trust to deliver. Two thirds of the public (65%) think consumer bodies can do the job they are entrusted with.
- Consumers look to independent channels of information about business performance such as consumer watchdogs, the media, & third party assurance lables rather than information produced by businesses which implies zero tolerance on overstated claims and greenwash
- 30% of consumers feel they can influence the way a business behaves through their purchasing decisions, and 45% are still prepared to boycott products made by companies they do not trust.
- 73% of consumers believe fair treatment of employees and suppliers are the priorities for what makes a responsible business
- +55 year olds are more likely to make an effort to buy responsible products and are more likely to think that consumers have a personal responsibility to ensure business behaves well. Under 25s are demanding that watchdogs take a more aggressive role in driving up standards.
Alex MacGillivray, Senior Partner at AccountAbility says: “This ‘accountability gap’ – the gulf between responsibility to act and capability to deliver - poses a huge problem as the recession tightens its grip...Consumers are sticking to their ethics but feel let down. Businesses are desperate for new ways to rebuild trust. Government sees the need for game changing policies. But collectively, the proposals on how to do this are well short of what is needed. Rebuilding assurance is the missing piece of the recovery plans.”
Read the press release - 'Public trust in business shrivels in recession - but consumers hold steady on ethical commitments' for more information.
