PressRelease

Embargoeduntil 00:01hrs

Monday21 April 2003

2,000 a year: Business countsthe cost of Crime

Crime in the UKtypically costs companies around 2,000 a year, according to figures releasedtoday. The sum is revealed in a survey of members of the Institute of Directors(IoD), which also found worryingly low expectations of justice from businessvictims of crime.

Richard Wilson,Business Policy Executive at the IoD, said:

For those businessesaffected by crime, the costs can be substantial. Instead of investing inmachinery or upgrading staff skills, employers precious resources arefrittered away on repairing criminal damage, taking crime prevention measuresand higher insurance costs. In the extreme, the damaging effects of crime canimperil a businesss viability. "

Specifically the IoDsurvey revealed:

66% of respondentsbusinesses were affected by crime over the last year.

Of those respondentswhose businesses had been affected by crime, 51% had been burgled; 46% hadtheir vehicles damaged; 39% had possessions stolen by criminals from outsidethe firm; and 33% had suffered from vandalism.

42% of businessesthat had been affected by crime had faced higher insurance costs; 41% had beenobliged to make alterations to their buildings layout to improve security; and23% said that the effect of crime was to disrupt trading in some way.

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A staggering 86% ofbusinesses were not confident that if they were the victim of a crime thecriminal would be caught.

Richard Wilson, said:

It is not justemployers and staff who pay the price of crime against business so does thepublic. Businesses will pass on the costs of criminal activity to the consumerin terms of higher prices, an inferior quality of service, or by closing downtheir enterprise altogether.

Businesses can takesteps to minimise the potential for crime by, for example, making theirpremises as secure as possible. However, the Government must also bear down oncrime by increasing police numbers and sentences given out by the courts shouldbe both strict and enforced.

Ends 17.4.03 No.166

Notes to Editors:

1.      The survey of 675 members showed that 66% of respondentssuffered from crime over a twelve-month period. 362 members were in a positionto give an estimate of the cost to their business. The average (mean) cost ofcrime for these members amounted to 149,000. The cost of crime for most IoDmembers' businesses was significantly lower than the average cost; the most commonlycited number (mode) was 2,000. The median cost was 5,000.

2. For a fullcopy of the survey, Crime: its extent,impact and consequences for business, contact the Press Office on 020 74513264 or email press@iod.com

3.       The IoD (Institute ofDirectors) is a non-party political independent organisation with around 55,000members. In addition to its wide range of business services, the IoD providesan effective voice to represent the interests of its members to government andkey opinion-formers. It also brings the experience of business leaders to bearon the conduct of public affairs.

Contact Points:

Richard Taylor, PressOfficer, tel: 020 7451 3264

mobile and out of hours: 07721 734886

David Marshall,Director of Public Affairs, tel: 020 7451 3263

mobile and outof hours: 0776 4883420

email: press@iod.com

web: www.iod.com