Time for consumers to take some responsibility

The shoppers and the shopped.

For Adam Smith, the one characteristic that set humanity apart from the beasts was our ability to strike a bargain. “One dog”, he wrote, “does not change a bone with another”. The exchange of bones, grain, motor cars, iPhones and the rest has built up over the last 250 years into a system more complex than even Smith could have imagined. At its heart, however, capitalism remains a grand bargain; we as consumers make clear the force of our demand, and producers respond to that with the scale of their supply. The nuances of that extend to pricing, to service, to quality and to the behaviour of companies in society.

It may seem of late that one side of the capitalist bargain is no longer being upheld. Beyond the economic car-smash of the banking crisis –with causes so obscure as to be beyond the understanding of most consumers– in the last few months no newspaper has seemed complete without at least one headline of the "Big Company Does Bad Thing" variety. PPI mis-selling, large-scale tax avoidance and rumours of price fixing are only some of the most prominent. Indeed, the malaise goes deeper. In the UK, we suffer some of the highest costs of living in the developed world, combined with some genuinely poor standards of service.

Research shows that, in the UK, more of us care about service than we do about price – by a factor of something like 2:1. That’s good news for companies, as it means that competitive advantage needn’t mean a squeeze on the profit margin. On the other hand, it’s bad news for consumers, the majority of whom say that they are unhappy with, or indifferent to, the standard of service they receive. The UK media would appear to be on the consumer’s side, and are all too ready to hurl opprobrium, whether for illegal rate-fixing or long call-centre queues. The phrase “responsible capitalism” is used often, but not always in a responsible manner; it’s noticeable that the media punishment does not always fit the corporate crime. However, when even the President of the CBI calls for more responsible attitudes from business, as he did recently in the Guardian newspaper and also at this week’s CBI conference, then that can be taken as a sure sign that it’s time for change.

As consumers we have as much power as companies do to effect that change. After all, two parties to a transaction have equal rights, to progress or to withdraw as they see fit. While it may be harder for us, as consumers, to fully exercise our power I would suggest that not only do we have the right to do so, but that we have a responsibility. If our capitalism has become irresponsible, then we cannot lay the blame for that solely at the feet of producers; as consumers, we too must consider what we might do better.

The same research that shows a disparity between what consumers want from companies and what we actually get, also shows a disparity between our desire for change and our willingness to act to achieve it. In a nation where customer boycotts are rarer than hen’s teeth, it’s perhaps unsurprising that unethical business practice can go unpunished by the consumer; it may be that we simply don’t care about tax evasion as much as our media does. It’s much more surprising that, for a nation that values good service over almost everything else, we are unusually reluctant to speak out about bad service, or even to seek better. Compared to consumers in the US, for example, or Poland or Russia, we are less likely to complain, to ask for the manager, to get angry with staff, or even to shop around for a better deal. The higher standards of service enjoyed in these countries is a testament to the success of such tactics.

In the UK, we consumers need to decide on our priorities (though it seems that many of us have), and to act to make them a reality (which we do not, as a rule). We should not expect to have the best service or the best price handed to us on a plate; that simply isn’t how capitalism works. Whether at the market stall or in the call centre queue, if we suffer in silence it benefits no-one and changes nothing. Only by making our views known can we hope to build the positive customer experiences that we all expect.

Returning to Smith, it may be time for us in the UK to refocus ourselves on “the constant and uninterrupted effort of every man to better his condition… the principle from which opulence is originally derived”. As consumers in the UK, there’s an opportunity for us all to gain a little more “opulence”. If we could take our obligations as consumers as seriously as we take our rights, then we would all feel the benefit, and our companies would too.

Claire Richardson is a VP at customer relations consultants Verint.

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The 4 most unfortunate Nazi-EU comparisons made by Brexiteers

Don't mention the war.

On Tuesday morning, the Prime Minister Theresa May made her overtures to Europe. Britain wanted to be, she declared “the best friend and neighbour to our European partners”.

But on the other side of the world, her Foreign secretary was stirring up trouble. Boris Johnson, on a trade mission to India, said of the French President:

“If Mr Hollande wants to administer punishment beatings to anybody who seeks to escape [the EU], in the manner of some World War Two movie, I don't think that is the way forward, and it's not in the interests of our friends and partners.”

His comments were widely condemned, with EU Brexit negotiator Guy Verhofstadt calling them “abhorrent”.

David Davis, the Brexit secretary, then piled in with the declaration: “If we can cope with World War Two, we can cope with this."

But this isn’t the first time the Brexiteers seemed to be under the impression they are part of a historical re-enactment society. Here are some of the others:

1. When Michael Gove compared economist to Nazis

During the EU referendum campaign, when economic organisation after economic organisation predicted a dire financial hangover from Brexit, the arch-Leaver Tory MP is best known for his retort that people “have had enough of experts”.

But Gove also compared economic experts to the Nazi scientists who denounced Albert Einstein in the 1930s, adding “they got 100 German scientists in the pay of the government to say he was wrong”. 

(For the record, the major forecasts came from a mixture of private companies, internationally-based organisations, and charities, as well as the Treasury).

Gove later apologised for his “clumsy” historical analogy. But perhaps his new chum, Donald Trump, took note. In a recent tweet attacking the US intelligence agencies, he demanded: “Are we living in Nazi Germany?”

2. When Leave supporters channelled Basil Fawlty

Drivers in Oxfordshire had their journey interrupted by billboards declaring: “Halt Ze German Advance! Vote Leave”. 

The posters used the same logo as the Vote Leave campaign – although as the outcry spread Vote Leave denied it had anything to do with it. Back in the 1970s, all-Germans-are-Nazi views were already so tired that Fawlty Towers made a whole episode mocking them.

Which is just as well, because the idea of the Nazis achieving their evil empire through tedious regulatory standards directives and co-operation with French socialists is a bunch of bendy bananas.   

3. When Boris Johnson said the EU shared aims with Hitler

Saying that, Boris Johnson (him again) still thinks there’s a comparison to be had. 

In May, Johnson told the Telegraph that while Brussels bureaucrats are using “different methods” to Hitler, they both aim to create a European superstate with Germany at its heart.

Hitler wanted to unite the German-speaking peoples, invade Eastern Europe and enslave its people, and murder the European Jews. He embraced violence and a totalitarian society. 

The European Union was designed to prevent another World War, protect the rights of minorities and smaller nations, and embrace the tedium of day-long meetings about standardised mortgage fact sheets.

Also, as this uncanny Johnson lookalike declared in the Telegraph in 2013, Germany is “wunderbar” and there is “nothing to fear”.

4. When this Ukip candidate quoted Mein Kampf

In 2015, Kim Rose, a Ukip candidate in Southampton, decided to prove his point that the EU was a monstrosity by quoting from a well-known book.

The author recommended that “the best way to take control” over a people was to erode it “by a thousand tine and almost imperceptible reductions”.

Oh, and the book was Mein Kampf, Hitler's erratic, rambling, anti-Semitic pre-internet conspiracy theory. As Rose explained: “My dad’s mother was Jewish. Hitler was evil, I'm just saying the EU is evil as well.”
 

Julia Rampen is the editor of The Staggers, The New Statesman's online rolling politics blog. She was previously deputy editor at Mirror Money Online and has worked as a financial journalist for several trade magazines.