Flawed accounting and other irregularities alleged at some of America's best-known businesses has done little to lower the already low level of confidence the public has in large corporations.
Confidence in Business: Was Low and Still Is
But Government Oversight Has Greater Appeal for Public, Poll Shows
Analysis By Gary Langer
July 1
— The nation's business scandals have boosted the appeal of government oversight, but contrary to conventional wisdom, they haven't weakened confidence in large corporations — it's been low, and it's still low — or prompted support for new legislation.
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In an ABCNEWS/Washington Post poll, 63 percent say regulation of corporations "is necessary to protect the public," up 10 points from a poll four years ago. Thirty percent say such regulation "does more harm than good," down 10 points.
But regulation may not require new legislation: Just 29 percent say there should be new laws controlling the way companies report their financial condition, unchanged from its level in January. The majority, instead, calls for better enforcement of existing laws.
Confidence Remains Low
From Enron to WorldCom, it's been broadly assumed that the recent scandals have shaken confidence in corporate America. In fact such confidence, while low, is no lower than usual. Only 23 percent of Americans express confidence in business corporations; 75 percent don't. That's about the same as it was 10 and even 20 years ago.
Confidence in Large Corporations
Great deal/Quite a lot
Some/little
Now
23%
75
1991
22
76
1981
26
71
The number of people with the least confidence — "very little" — stands at 33 percent. But it was 31 percent at one point in 1991 and in 1981 alike.
Advantage: Democrats, Barely
Political advantage on the issue tips very slightly to the Democrats — less than might be assumed, given the Republicans' traditional association with business. The Democrats in Congress hold a six-point lead over President Bush in trust to handle the problem. And when it's the Democrats vs. the Republicans in Congress — more relevant, perhaps, for the midterm election — the Democrats have a scant three-point edge.
Confidence in business does have a political connection — it's 19 percent among Democrats, while a higher (but still not high) 30 percent among Republicans, with independents in their customary middle ground.
Even among Democrats, though, just 32 percent see a need for new laws regulating the way companies account for their financial condition. Fifty-one percent of Democrats prefer better enforcement of existing laws, as do 59 percent of Republicans.
One area in which party adherents agree is in the notion that the recent accounting irregularities are a sign of broader problems with the way many companies report their financial conditions, rather than isolated incidents — 74 percent say so, including about equal numbers of Democrats, Republicans and independents.
It was nearly as high, though — 68 percent — back in January, which is probably one reason for the muted public response to the more recent scandals.
Methodology
This ABCNEWS/Washington Post poll was conducted by telephone June 26-30 among a random national sample of 1,024 adults. The results have a three-point error margin. Field work was done by TNS Intersearch of Horsham, Pa.
Previous ABCNEWS polls can be found in our PollVault.
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