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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Why isn't Labour putting forward Corbynite candidates?

Despite his successes as a candidate, the organisational victories have gone the way of Corbyn's opponents. 

The contest changes, but the result remains the same: Jeremy Corbyn’s preferred candidate defeated in a parliamentary selection. Afzhal Khan is Labour’s candidate in the Manchester Gorton by-election and the overwhelming favourite to be the seat’s next MP.

Although Khan, an MEP, was one of  the minority of Labour’s European MPs to dissent from a letter from the European parliamentary Labour party calling for Jeremy Corbyn to go in the summer of 2016, he backed Andy Burnham and Tom Watson in 2015, and it is widely believed, fairly or unfairly, that Khan had, as one local activist put it, “the brains to know which way the wind was blowing” rather than being a pukka Corbynite.

For the leader’s office, it was a double defeat;  their preferred candidate, Sam Wheeler, was kept off the longlist, when the party’s Corbynsceptics allied with the party’s BAME leadership to draw up an all ethnic minority shortlist, and Yasmine Dar, their back-up option, was narrowly defeated by Khan among members in Manchester Gorton.

But even when the leadership has got its preferred candidate to the contest, they have been defeated. That even happened in Copeland, where the shortlist was drawn up by Corbynites and designed to advantage Rachel Holliday, the leader’s office preferred candidate.

Why does the Labour left keep losing? Supporters combination of bad luck and bad decisions for the defeat.

In Oldham West, where Michael Meacher, a committed supporter of Jeremy Corbyn’s, was succeeded by Jim McMahon, who voted for Liz Kendall, McMahon was seen to be so far ahead that they had no credible chance of stopping him. Rosena Allin-Khan was a near-perfect candidate to hold the seat of Tooting: a doctor at the local hospital, the seat’s largest employer, with links to both the Polish and Pakistani communities that make up the seat’s biggest minority blocs.  Gillian Troughton, who won the Copeland selection, is a respected local councillor.

But the leadership has also made bad decisions, some claim.  The failure to get a candidate in Manchester Gorton was particularly egregious, as one trade unionist puts it: “We all knew that Gerald was not going to make it [until 2020], they had a local boy with good connections to the trade unions, that contest should have been theirs for the taking”. Instead, they lost control of the selection panel because Jeremy Corbyn missed an NEC meeting – the NEC is hung at present as the Corbynsceptics sacrificed their majority of one to retain the chair – and with it their best chance of taking the seat.

Others close to the leadership point out that for the first year of Corbyn’s leadership, the leader’s office was more preoccupied with the struggle for survival than it was with getting more of its people in. Decisions in by-elections were taken on the hop and often in a way that led to problems later down the line. It made sense to keep Mo Azam, from the party’s left, off the shortlist in Oldham West when Labour MPs were worried for their own seats and about the Ukip effect if Labour selected a minority candidate. But that enraged the party’s minority politicians and led directly to the all-ethnic-minority shortlist in Manchester Gorton.

They also point out that the party's councillor base, from where many candidates are drawn, is still largely Corbynsceptic, though they hope that this will change in the next round of local government selections. (Councillors must go through a reselection process at every election.)

But the biggest shift has very little to do with the Labour leadership. The big victories for the Labour left in internal battles under Ed Miliband were the result of Unite and the GMB working together. Now they are, for various reasons, at odds and the GMB has proven significantly better at working shortlists and campaigning for its members to become MPs.  That helps Corbynsceptics. “The reason why so many of the unions supported Jeremy the first time,” one senior Corbynite argues, “Is they wanted to move the Labour party a little bit to the left. They didn’t want a socialist transformation of the Labour party. And actually if you look at the people getting selected they are not Corbynites, but they are not Blairites either, and that’s what the unions wanted.”

Regardless of why, it means that, two years into Corbyn’s leadership, the Labour left finds itself smaller in parliament than it was at the beginning.  

Stephen Bush is special correspondent at the New Statesman. His daily briefing, Morning Call, provides a quick and essential guide to British politics.