Members of the UK200Group of independent chartered accountancy and lawyer firms have today commented on news that three quarters of people don’t think big firms put profits before ethical standards.

It comes after a new survey conducted among 2,000 people on behalf of the Forum for Private Business (FPB) revealed that people distrusted the ethics of ‘big business’ in the UK.

It found that up to 74 per cent of the respondents felt that big businesses had no concern for small business owners in the UK and that 76 per cent of people believed that the next government should penalise large businesses who act unfairly towards SMEs.

The poll put together by ComRes also discovered that tax avoidance, treatment of suppliers, and late payment were all areas of concern.

Jonathan Russell, partner at UK200Group member firm ReesRussell, said:

“Saying that big businesses are unethical is really just confirming that the entire capitalist economic model is unethical. The capitalist business and economic model is about making money at the expense of others, though generally this is diluted from the extreme.

“However, the saying that power corrupts and absolute power corrupts absolutely might be applied to big businesses, where they are able to use their economic power to solely their own advantage. However, should we legislate that big business should deal with small business 'fairly' - where do we draw the distinctions and limits?

“It is no different to the obscene increases in levels of executive pay at big companies, legislation will not manage it, but ultimately market forces will. The final power is with the consumer and if the consumer takes away its business then businesses will listen.”

David Ingall, past president of the UK200Group said:

“It is easy to lambast "big business" and probably in many ways they do deserve their reputation. However, a flexible moral attitude or a lack of ethics is not the preserve of our larger companies. Television is awash with programmes about cowboy businesses and rip off Britain. Those businesses are almost exclusively SMEs.

“This does not excuse any business, quango or government department from unethical behaviour it is just easier to criticise an impersonal face in our media. Indeed we should ask whether it is ethical for the media to whip up fashionable campaigns against tax avoiders (as opposed to evaders) in the name of building their circulation or subscriber numbers?”

David Whiscombe, director of tax at UK200Group member firm BKL, said:

“I worry about the apparent naivety of nearly a quarter of the population who think that big firms don’t put profits first or that they could give a stuff about SMEs. 

“As for regulating large businesses in their conduct towards smaller ones, I would say:

The wider and fundamental problem is inequality of bargaining power. There is no earthly point in giving additional powers to the weaker party which, commercially, he will be frightened to use. In these circumstances freedom of contract is illusory and should not be sacrosanct. There is precedent for the law stepping in to limit freedom of contract where there is unequal bargaining power –   think for example of consumer law, property law and employment law. Similar statutory protections should be afforded, where relevant, to commercial contracts – backed up (as in the other areas mentioned) by sanctions under criminal law. The law doesn’t generally allow the strong to bully the weak: it should not do so in the field of commerce.”

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Established in 1986, UK200Group is the leading mutual professional association in the UK with some 150 offices of quality-assured member accountancy and lawyer firms throughout the UK totalling over 550 partners, 150,000 business clients and global links in over 50 countries. UK200Group provide services and products that are designed to enhance the business performance of its members.  Telephone 01252 401050, email admin@uk200group.co.uk or visit www.uk200group.co.uk 

Disclaimer:

UK200Group is an association of separate and independently owned and managed accountancy firms and lawyer firms. UK200Group does not provide client services and it does not accept responsibility or liability for the acts or omissions of its members.  Likewise, the members of UK200Group are separate and independent legal entities, and as such each has no responsibility or liability for the acts or omissions of other members.

 

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