GALLUP NEWS SERVICE
PRINCETON, NJ -- It isn't likely that the Enron scandal will have a dramatic effect on the views of the American public about business, the relationship between business and politics, or campaign finance reform.
Even before the Enron crisis moved to the nation's front pages, Americans had relatively low opinions of the honesty and ethics of business executives, did not have a great deal of confidence in business as an institution, and felt that business already has too much influence in society.
Additionally, the public has long thought that George W. Bush was too cozy with big business, suggesting that Americans may not be surprised by the recent focus on the relationship between members of the Bush administration and Enron.
The Enron scandal is also unlikely to cause a groundswell of public pressure for campaign finance reform. Americans support campaign finance reform in principle, but are usually cynical that it will reduce the undue influence of special interests in Washington. Additionally, campaign finance always ranks very low on Americans' lists of government priorities
The one area in which the Enron scandal may hit its most responsive chord could be in relationship to retirement, and the need for workers' legal protection when their 401(k)s are heavily tilted towards one company's stock. Americans have long been concerned about their ability to retire with financial security, and the scandal could heighten these fears.
Big Business
Americans' attitudes about big business are lukewarm at best. As part of Gallup's annual survey of confidence in institutions, last year Americans rated "big business" near the bottom of the list: 28% said they had a great deal or quite a lot of confidence, while 26% said they had very little or no confidence in big business.
Now I am going to read you a list of institutions in American society. Please tell me how much confidence you, yourself, have in each one -- a great deal, quite a lot, some, or very little? First, ... Next, [RANDOM ORDER]
|
|
|
|
|
|
|
|
Great deal/ Quite |
|
% |
% |
% |
% |
% |
% |
% |
|
|
The military |
32 |
34 |
24 |
6 |
2 |
2 |
66 |
|
The church or organized religion |
32 |
28 |
24 |
13 |
2 |
1 |
60 |
|
The police |
26 |
31 |
31 |
11 |
1 |
* |
57 |
|
The U.S. Supreme Court |
22 |
28 |
31 |
13 |
3 |
3 |
50 |
|
The presidency |
23 |
25 |
33 |
15 |
2 |
2 |
48 |
|
Banks |
17 |
27 |
41 |
13 |
1 |
1 |
44 |
|
The medical system |
15 |
25 |
38 |
19 |
2 |
1 |
40 |
|
The public schools |
16 |
22 |
37 |
22 |
2 |
1 |
38 |
|
Faith-based charitable organizations |
16 |
21 |
40 |
16 |
3 |
4 |
37 |
|
Newspapers |
13 |
23 |
44 |
16 |
3 |
1 |
36 |
|
Television news |
14 |
20 |
43 |
19 |
3 |
1 |
34 |
|
The electric power utilities |
12 |
16 |
44 |
24 |
3 |
1 |
28 |
|
Big business |
10 |
18 |
44 |
23 |
3 |
2 |
28 |
|
Organized labor |
12 |
14 |
43 |
23 |
3 |
5 |
26 |
|
Congress |
10 |
16 |
49 |
20 |
2 |
3 |
26 |
|
Health Maintenance Organizations, HMOs |
7 |
8 |
34 |
40 |
7 |
4 |
15 |
Similarly, the public's perception of the honesty and ethics of business executives is also relatively low. In Gallup's annual survey of the honesty and ethics of professions, completed last November, just 25% of Americans said they thought the honesty standards of business executives were very high or high, compared to the 60% and higher who rated the honesty of pharmacists, doctors, engineers, and clergy as very high or high.
A recent Gallup poll also found that slightly more than half of Americans would like to see major corporations have less influence in this nation, while just 8% would like to see corporations have more influence.
Would you like to see major corporations have more influence in this nation, less influence, or keep their influence as it is now?
|
|
|
Keep influence |
|
|
|
|
2002 Jan 7-9 |
8% |
53 |
37 |
0 |
2 |
|
2001 Jan 10-14 |
10% |
52 |
36 |
* |
2 |
In short, the reputation and image of business, major corporations, and business leaders were none too sterling even before the recent revelations about Enron.
This suggests that the public is not likely to be surprised by what they have heard or will hear about the Enron situation. The unfolding Enron story may be considered by many to be business as usual. A Gallup poll conducted Jan. 11-14 showed that of those Americans paying close attention to the Enron situation, over six out of 10 thought that Enron executives had done something illegal.
Which of the following statements best describes your view of the actions of executives of the Enron energy corporation -- [ROTATED: they did something illegal, they did something unethical but nothing illegal, or they did not do anything seriously wrong]?
|
Following the Enron situation very or somewhat closely |
|
Something unethical but |
Did not do anything seriously wrong |
|
|
2002 Jan 11-14 |
61% |
29 |
5 |
5 |
Along the same lines, the major business sector involved in the controversy -- the oil and gas industry -- scored near the bottom in public esteem in a Gallup poll survey assessing the public's ratings of business and industry last year. Utilities also scored low. Both had significantly more Americans giving them a negative than a positive rating. (The accounting profession -- also in the forefront of the scandal because of accounting firm Arthur Andersen's involvement as Enron's auditor -- is in a somewhat different position than these other industries. As a whole, accounting was given a net positive rating by the public of +39 in last summer's poll.)
BUSINESS AND INDUSTRY RATINGS SUMMARY TABLE
|
2001 Aug 16-19 |
Total positive |
|
Total Negative |
Net |
|
% |
% |
% |
% |
|
|
Computer industry |
67 |
20 |
10 |
57 |
|
Restaurant industry |
62 |
28 |
8 |
54 |
|
Farming and agriculture |
59 |
24 |
15 |
44 |
|
Grocery industry |
57 |
29 |
13 |
44 |
|
Accounting |
47 |
40 |
8 |
39 |
|
Travel industry |
50 |
35 |
13 |
37 |
|
Retail industry |
47 |
34 |
17 |
30 |
|
Publishing industry |
47 |
32 |
18 |
29 |
|
Banking |
47 |
31 |
20 |
27 |
|
Real Estate industry |
46 |
32 |
20 |
26 |
|
Automobile industry |
45 |
28 |
26 |
19 |
|
Education |
50 |
18 |
32 |
18 |
|
Internet industry |
44 |
26 |
27 |
17 |
|
Airline industry |
37 |
29 |
30 |
7 |
|
Advertising and public relations industry |
38 |
28 |
32 |
6 |
|
Television and radio industry |
42 |
22 |
36 |
6 |
|
Sports industry |
38 |
28 |
33 |
5 |
|
Telephone industry |
39 |
24 |
37 |
2 |
|
Pharmaceutical industry |
39 |
22 |
38 |
1 |
|
Healthcare industry |
37 |
19 |
44 |
-7 |
|
Movie industry |
33 |
23 |
41 |
-8 |
|
Electric and gas utilities |
31 |
21 |
47 |
-16 |
|
The legal field |
29 |
24 |
45 |
-16 |
|
Oil and gas industry |
24 |
21 |
54 |
-30 |
Given these perceptions, it is possible that Americans will be receptive to the inevitable calls for new legislation and controls on business, although the existing attitudes may also suggest that the public is relatively cynical that these types of controls would ultimately make a difference.
The Bush Administration
Our initial read on the public's perception of the culpability of the Bush administration in the Enron matter shows a muted response. Even among those following the situation closely, only 15% say that they believe members of the Bush administration did something illegal:
Which of the following statements best describes your view of members of the Bush administration's involvement with the Enron Corporation -- [ROTATED: they did something illegal, they did something unethical but nothing illegal, or they did not do anything seriously wrong]?
|
Following the Enron situation very or somewhat closely |
|
Something unethical but |
Did not do anything seriously wrong |
|
|
2002 Jan 11-14 |
15% |
40 |
35 |
10 |
Still, our data show that even before the recent publicity surrounding Enron, Americans have felt that there was too cozy a relationship between business and the Bush administration:
Do you think big business does -- or does not -- have too much influence over the decisions made by the Bush administration?
|
Yes, does |
No, does not |
No opinion |
|
|
(NA) 2002 Jan 11-14 |
63% |
31 |
6 |
|
(NA) 2001 Jul 10-11 |
67% |
26 |
7 |
|
(NA) 2001 Apr 20-22 |
63% |
30 |
7 |
As can be seen above, it does not appear that the Enron scandal, at least as measured in the Jan. 11-14 poll, had made an appreciable difference in these perceptions. The percentages saying "yes" to this influence question were identical in January 2002 and April 2001.
The ultimate fate of the Bush administration (and perhaps the fate of Democrats in Congress who have connections to Enron) will only become clear as the Congressional hearings and media investigations continue. A CBS news poll conducted Jan. 15-17 found that 73% of Americans reported not knowing enough yet to say whether or not the Bush administration did something wrong in connection with the bankruptcy of Enron. The fact that so many Americans already feel that the administration is too influenced by big business may suggest that the impact of the new revelations is less dramatic than might be the case for an administration that had no corporate-influence image issue. At the same time, the public's predisposition to believe that the White House is too closely linked to big business could make any charges about improper conduct more plausible.
Campaign Finance Reform
Many years of polling have shown that most Americans favor the concept of campaign finance reform:
Based on what you have heard or read, do you favor or oppose
Congress passing new campaign finance laws?
|
Favor |
Oppose |
No opinion |
|
|
2001 Jul 10-11 |
65% |
25 |
10 |
But, as can be seen below, a majority of Americans have consistently felt that major changes to the laws governing campaign finance would not curb the ability of special interests to maintain their power in Washington.
Some people say major changes to the laws governing campaign finance could succeed in reducing the power of special interests in Washington. Other people say no matter what new laws are passed, special interests will always find a way to maintain their power in Washington. Which comes closer to your point of view?
|
Major changes could succeed in reducing power |
Special interests will maintain power |
|
|
|
|
2000 Oct 6-9 |
28% |
64 |
2 |
6 |
|
1998 Mar 20-22 |
31% |
63 |
2 |
4 |
|
1997 Oct 3-5 |
36% |
59 |
1 |
4 |
Thus, perhaps efforts to use the Enron scandal as the impetus to pass new campaign finance laws will not engender a totally enthusiastic response from the American public. Americans will support the concept, but probably won't be persuaded that new laws would prevent Enron-type situations from occurring in the future.
Retirement
Much of our data investigating Americans' personal financial concerns suggest that the public is worried about being able to retire with adequate financial resources. One recent question, for example, shows that half of Americans are less optimistic than they were a year ago that they will be able to afford to retire at a reasonable age.
Are you more optimistic or less optimistic than you were a year ago that you will be able to afford to retire at a reasonable age?
BASED ON -- 611 -- ADULTS EMPLOYED FULL OR PART-TIME; ±4 PCT. PTS.
|
|
More |
Less |
NO DIFFERENCE (vol.) |
No opinion |
|
2001 Dec 14-16 |
36% |
50 |
12 |
2 |
Last spring -- even before the full effects of the recession were evident to most Americans -- the public was as worried about not having enough money for retirement as they were about any of the other of a list of financial problems included in the question:
Next, please tell me how concerned you are right now about each of the following financial matters, based on your current financial situation -- are you very worried, moderately worried, not too worried, or not worried at all. If a particular item does not apply to you, please say so. First, how worried are you about … How about …. [RANDOM ORDER]?
A. Not being able to pay medical costs for normal healthcare
|
|
|
|
Not worried |
DOESN'T APPLY |
|
|
|
2001 Apr 6-8 |
22% |
22 |
24 |
31 |
1 |
0 |
B. Not being able to pay medical costs in the event of a serious illness or accident
|
|
|
|
Not worried |
DOESN'T APPLY |
|
|
|
2001 Apr 6-8 |
27% |
23 |
24 |
25 |
1 |
* |
C. Not being able to pay your rent, mortgage or other housing costs
|
|
|
|
Not worried |
DOESN'T APPLY |
|
|
|
2001 Apr 6-8 |
10% |
14 |
28 |
44 |
4 |
* |
D. Not being able to maintain the standard of living you enjoy
|
|
|
|
Not worried |
DOESN'T APPLY |
|
|
|
2001 Apr 6-8 |
16% |
27 |
30 |
26 |
1 |
* |
E. Not being able to make the minimum payments on your credit cards
|
|
|
|
Not worried |
DOESN'T APPLY |
|
|
|
2001 Apr 6-8 |
9% |
9 |
22 |
41 |
19 |
* |
F. Not having enough money for retirement
|
|
|
|
Not worried |
DOESN'T APPLY |
|
|
|
2001 Apr 6-8 |
24% |
29 |
24 |
19 |
4 |
* |
The publicity surrounding the plight of Enron employees who had most of their retirement savings in Enron stock could underscore these concerns for Americans -- particularly those who have money in company stock.
At the same time, a recent Jan. 15-17 CBS news poll shows that employees who have 401(k) money invested in company stock do not appear to be overly concerned -- yet. Just 5% were very worried about having "too much of your retirement nest egg invested in your company's stock," while 37% were somewhat worried, and the majority -- 56% -- said they were not at all worried.
Survey Methods
These results are based on telephone interviews with randomly selected national samples of at least 1,000 adults, 18 years and older. For results based on these samples, one can say with 95 percent confidence that the maximum error attributable to sampling and other random effects is plus or minus 3 percentage points. In addition to sampling error, question wording and practical difficulties in conducting surveys can introduce error or bias into the findings of public opinion polls.
(NA) – National adults
(vol.) – Volunteered response
* -- Less than 0.5%
