UK: UK customers like buying from co-owned companies

More than seven in ten co-owned companies [71%] questioned for the report said being employee owned made the business more attractive to their customers. In contrast, just 2% saw the co-ownership effect as negative, while fewer than a quarter [23%] saw no effect one way or the other.

The results underline other recent UK surveys by Verdict Research and the Consumers Association which rated co-owned John Lewis and Waitrose as the nation?s two favourite stores.

The findings appear in JOL?s report, Good Business: the employee ownership experience, based on a survey of just under a hundred employee owned businesses which JOL conducted with Co-operatives UK.

Overall, companies surveyed thought the advantages of being co-owned easily outweighed any disadvantages. Greater staff commitment to the company?s success was rated the top ?plus? of being employee owned [85% strongly agreed], slightly ahead of other benefits such as better employee relations [71%] and the company?s more responsible business behaviour [67%]. Other benefits cited included staff working harder and taking more responsibility, people being more creative, and innovation happening more smoothly.

Companies mentioned fewer minuses than pluses of co-ownership, with decision making the main, but limited downside. Around one in five [19%] ?strongly agreed? employee owned companies have a tendency to avoid unpopular decisions, while one in seven [14%] felt decisions were slower in employee owned companies.

Asked to say what they think customers like about co-ownership, 93% of companies surveyed said they were seen as more ethical, more socially responsible [74%] and more trustworthy [66%]. Customers also appear to like the fact that employee owned firms will treat staff better [cited by half those surveyed] and that staff ? probably as a direct result ? are better at dealing with customers [mentioned by 46%].

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