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The Enron Effect in the US

October 22 2002

Latest research from Harris shows that corporate scandals-from Enron and WorldCom to Global Crossing and Adelphia-have had a big impact on American public attitudes toward top business managers, in general, not just those in the companies under investigation.

In more detail, 87% of all adults believe that most top company managers are paid more than they deserve, and that they become rich at the expense of ordinary workers. Most (85%) of those who think top managers become rich at the expense of ordinary workers are angry about it, and 46% are very angry.

One major indication that attitudes toward business leaders have become more hostile as a result of the recent scandals is that two-thirds (66%) of all adults believe that rewards in the workplace are distributed less fairly today than they were five years ago.

While anger at the unfairness of top managers' pay and perks is widespread, it is particularly strong among the 37% of the public who say they are worse off today than they were five years ago (34% say they are better off and 29% say 'about the same'). In general the older people are, the more likely they are to say they are worse off, and to feel angrier. For example, among people aged 18 to 24, a 53% majority says they are better off and only 21% are worse off. And only 49% of this age group feels angry about the extravagance of top managers' pay (and only 19% are very angry). However, among people aged 65 and over (who feel worse off, by 50% to 12%) fully, 86% are angry and 59% are very angry.

An unexploited political issue? This big difference among the different age groups has important political implications. Only about a third of all adults will vote in the elections this November, and they will be disproportionately older. Indeed, about half of them will be over 50 (about 80% of whom are 'angry' that top managers have become rich at the expense of their employees).

This issue would therefore seem to be an easy one for Democratic candidates to use against a Republican administration whose tax cuts have mainly benefited the rich. But, with impending military action against Iraq dominating the news, the Democrats have not yet exploited this issue.

For complete data tables for this survey, please go to www.harrisinteractive.com/harris_poll/index.asp?PID=334

The Harris Poll was conducted online within the United States between September 24 and October 2, 2002 among a nationwide cross section of 2,023 adults.


All articles 2006-22 written and edited by Mel Crowther and/or Nick Thomas unless otherwise stated.

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