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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Will Jeremy Corbyn stand down if Labour loses the general election?

Defeat at the polls might not be the end of Corbyn’s leadership.

The latest polls suggest that Labour is headed for heavy defeat in the June general election. Usually a general election loss would be the trigger for a leader to quit: Michael Foot, Gordon Brown and Ed Miliband all stood down after their first defeat, although Neil Kinnock saw out two losses before resigning in 1992.

It’s possible, if unlikely, that Corbyn could become prime minister. If that prospect doesn’t materialise, however, the question is: will Corbyn follow the majority of his predecessors and resign, or will he hang on in office?

Will Corbyn stand down? The rules

There is no formal process for the parliamentary Labour party to oust its leader, as it discovered in the 2016 leadership challenge. Even after a majority of his MPs had voted no confidence in him, Corbyn stayed on, ultimately winning his second leadership contest after it was decided that the current leader should be automatically included on the ballot.

This year’s conference will vote on to reform the leadership selection process that would make it easier for a left-wing candidate to get on the ballot (nicknamed the “McDonnell amendment” by centrists): Corbyn could be waiting for this motion to pass before he resigns.

Will Corbyn stand down? The membership

Corbyn’s support in the membership is still strong. Without an equally compelling candidate to put before the party, Corbyn’s opponents in the PLP are unlikely to initiate another leadership battle they’re likely to lose.

That said, a general election loss could change that. Polling from March suggests that half of Labour members wanted Corbyn to stand down either immediately or before the general election.

Will Corbyn stand down? The rumours

Sources close to Corbyn have said that he might not stand down, even if he leads Labour to a crushing defeat this June. They mention Kinnock’s survival after the 1987 general election as a precedent (although at the 1987 election, Labour did gain seats).

Will Corbyn stand down? The verdict

Given his struggles to manage his own MPs and the example of other leaders, it would be remarkable if Corbyn did not stand down should Labour lose the general election. However, staying on after a vote of no-confidence in 2016 was also remarkable, and the mooted changes to the leadership election process give him a reason to hold on until September in order to secure a left-wing succession.

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