By Doug Pinkham
Public Affairs Council President
May 12, 2010
More than 1,000 adults were asked to share their attitudes about Big Business. When the results were tallied, two-thirds said companies cared more about making large profits than developing safe, reliable, quality products. And 74% said corporations had too much political influence.
Yet another new survey bashing Corporate America? Nope, this one was reported in the Sept. 11, 2000, issue of BusinessWeek, which partnered with Harris Poll to conduct the study. The economy at the time - exactly one year before 9/11 - was not recovering from a recession. It was soaring.
Yet negative opinions were simmering below the surface. At that summer's Democratic convention, Al Gore rallied against "Big Tobacco, Big Oil, the big polluters, the pharmaceutical companies, the HMOs." While many agreed that business had helped to create the enormous wealth generated in the 1990s, less than half felt that "what's good for business is good for most Americans." Anti-corporate feelings, it seemed, were potent enough to endure even in times of prosperity.
Here we are, nearly 10 years later, and those feelings not only persist, they have become stronger. And today, the public is not just dissatisfied, it is angry. A Pew Research Center poll indicates only 25 percent of the public has a positive view of large corporations.
The Wall Street bailouts, executive pay controversies, recessionary layoffs, Toyota's recalls, the Gulf of Mexico oil spill and a host of other crises have exacerbated an already serious situation. The business community doesn't just have an image problem; it has a reality problem that may be impossible to completely resolve.
Sen. Mark Warner, D-Va., speaking at a Public Affairs Council meeting several weeks ago, warned of the public's growing anti-business attitudes. Companies should be especially concerned that political activists on the far right and the far left are agreeing more and more in their demands for radical reform, he said. This "Tea-Partiers-meet-The-Huffington-Post" alliance could create pressure for punitive regulations that make it harder for businesses to be successful.
Warner feels the business community has largely itself to blame. "That big-picture, creative, we're-in-it-for-the-country approach is sadly missing," he said. Businesses need to be seen as "the job creators and the engines of growth rather than just the object of scorn." As a first step, Warner stressed the business community must look for ways to "actually be for something rather than always against something."
I couldn't agree more. The challenge is figuring out what that "something" is. Not every company has the same opportunities to make game-changing investment decisions. Not every company works in a sector or geographic region that supports the kind of bold moves that can help a business' reputation down the road. Wal-Mart, for instance, has the purchasing power to create whole new supply chains of environmentally sustainable products. But very few companies come close to Wal-Mart's size and influence.
One of the best ways to showcase Corporate America's positive side is already a well-developed practice in many companies - but it rarely receives the attention it deserves. That function is disaster relief assistance.
In many firms, disaster relief efforts fall under the jurisdiction of corporate philanthropy. But, as we've seen with Hurricanes Katrina and Rita, the Indian Ocean tsunami, earthquakes in Pakistan and China, and the recent Haiti earthquake, companies often add logistical support to their financial and in-kind donations. The result has been an extremely sophisticated response effort that often matches or exceeds government emergency services.
Corporate contributions following the 2005 hurricanes topped $1 billion, according to the Business Civic Leadership Center (BCLC), the coordination hub for corporate disaster response. The Indian Ocean tsunami generated $566 million in corporate donations, and - as of early March - about $150 million had gone to help victims of the Haiti earthquake.
A quick look at the roster of companies supporting the Haiti relief effort is testament to the generosity and creativity of American businesses. Some firms donated supplies (food, water, medical equipment); others provided operational support (transportation, mobile hospitals). Virtually all gave money and/or matched employee contributions 1:1.
What's striking when you read the list is how few of these firms have any business interest in Haiti; they simply want to help.
The last week has been especially busy for BCLC as it tries to help communities deal with the Gulf oil spill and the severe flooding in Tennessee. In the Gulf region, towns are searching for equipment to keep oil off their shores, non-profits are getting organized and local businesses are trying to prevent tourism dollars from vanishing. The flooding in Nashville, the worst in 80 years, has created demand for diapers, baby formula, cleaning supplies, rubber gloves, wet vacs, brooms, mops, dehumidifiers and generators.
(People and companies wishing to help with relief efforts should contact the National Disaster Help Desk for Business at 1-800-MY-BIZ-HELP.)
Making the public aware of corporate citizenship efforts won't by itself restore trust in business. But it is an important - and badly needed - step in the right direction. Any efforts to address the anti-business climate need to be taken with the same spirit and willingness to work with government to benefit people. Though political differences will always exist, this collaborative approach can be applied to advocacy as well as to community service.
The BCLC sets the standard for this new type of civic action. It also defies expectations in many ways. Though it is a service organization, it is not managed by a progressive foundation or relief group.
Ten years ago this month, the BCLC was founded as a non-profit affiliate of the U.S. Chamber of Commerce, the association often vilified for its business lobbying. Fair or unfair, the Chamber has come to symbolize the stridency of Big Business. It's only fitting that it also get credit for helping to showcase one of businesses' greatest strengths - the ability to harness resources to solve problems.
Comments? Email me at http://pac.org/contact/blog.
