BCC Business Crime Survey [1]

8/7/2019 BCC Business Crime Survey [1]

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THE INVISIBLE CRIME:A BUSINESS CRIME SURVEY

APRIL 2008


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Foreword p.3

Section one: Executive summary p.4

Section two: Introduction to the study p.6

Section three: Experience andreporting of crime p.8

Section four: Computer related crimeand e-crime p.12

Section five: The cost and impactof crime p.14

Section six: Local crime and awarenessof partnerships to tackle it p.18

Section seven: Crime reduction p.20

Appendix one: Sample profile p.26

Appendix two:Participating Chambers p.27

The British Chambers of Commerce is thenational voice of local businesses, actingon behalf of a network of AccreditedChambers of Commerce across the UK.

Representing over 100,000 businessesand 5 million employees, Chambers ofCommerce are the Ultimate BusinessNetwork. Lying at the heart of their localcommunity, Chambers serve all businesseswith a passion no-one else can match.

Written and researched by:Gareth Elliott, Policy Adviser

Acknowledgements:Sally Low, Director of PolicyChris Hannant, Head of Policy

The British Chambers of Commerce65 Petty FranceSt. Jamess ParkLondonSW1H 9EUTel: 0207 654 5800Fax: 0207 654 5819Email: [email protected]: http://www.britishchambers.org.uk

C O N T E N T S

Designed and printed by EVC GraphicDesign and Print, Pangbourne, Berkshire,UK, a registered 14001 environmentalprinter. Printed on paper from a managedsustainable source, using pulp that is TCF& ECF, and printed with vegetable soyabased inks.

A B O U T U S


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F O R E W O R D

3

David FrostDirector GeneralBritish Chambers of Commerce

When the British Chambers of Commercecommissioned its last Crime Against BusinessSurvey in 2004, there was a belief among thebusiness community that the Government was atlast taking the issue of business crime seriously.A renewed focus on working with local partnersand a greater emphasis on national partnershipswere seen as positive steps in the right direction.

However, this survey has found that confidencein the police and its ability to deal with business

crime is worryingly low. As a result thedisturbing trend of non-reporting of businesscrime is on the rise. Businesses, at the heart oftheir local communities and as providers of jobs,are key to the development and sustainability oftheir local areas. Damage to business, thereforedamages the community itself.

The British Chambers of Commerce estimatesthe cost of crime against business has risen bya worrying 20% since 2004 with the total costnow standing at 12.6 billion. This acts as a

significant brake on growth not only of thenational economy but at a local level. Townsand cities are sustained by the viability oftheir local economies. If crime against businesscontinues to rise, companies will be forcedto relocate taking with them the employmentand opportunities they provide while areasaffected by crime will fail to attract theinvestment required to stimulate and sustaineconomic regeneration.

It is now imperative that the Governmentrecognises the seriousness of crime againstbusiness. The British Chambers of Commercebelieves that the Government should tacklebusiness crime in partnership with the businesscommunity. Chambers of Commerce are ideallyplaced at the heart of local communities toassist the police in tackling business crime. Weurge the Government to take action on thisimportant issue and to engage with allstakeholders.


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1.1 EXECUTIVE SUMMARYCrime against business is a problem that is notonly affecting many companies ability to dobusiness but is also blighting the communitiesin which they are situated. 80% of businessesindicated that crime against business is a problemin their local area. Businesses sit at the heart ofcommunities providing jobs and opportunitieswhile contributing to development and economicgrowth. Crime that affects businesses is nottherefore an invisible phenomenon but a serious

threat to local jobs and the viability of an area.The British Chambers of Commerce reports thatbusiness crime is rising at a disturbing rate. Since2004 the total cost of crime against business hasrisen nearly 20% from 10.5 billion to 12.6 billion.The Home Office has previously estimated thetotal cost of crime in Britain each year is59.9 billion 1, which would suggest that businesscrime accounts for a substantial share of thetotal cost of crime.

The low priority with which the Governmentplaces business crime was clearly felt bybusinesses responding to this poll. Three fifthsof businesses do not feel confident that the policeunderstand the issues that are most important totheir business while two thirds did not displayconfidence that police were dealing with theseissues. As a result of this three in ten businesses,nearly double that of the 2004 survey, arechoosing not to report all crimes committedagainst them, even as over half have stated in thisreport that they have in fact been victims of oneor more instances of crime. 68% suggest thatthey might not report a crime if there was only a

relatively small loss or damage to their premiseswhile 36% claimed they would not report anincident due to the lack of confidence in a suitablepolice response. Reporting of statistics is furtherexacerbated by the lack of a national performanceindicator for crime against businesses with whichto record the extent of the problem.

The Home Office only last year published its newcrime strategy which announced a renewed focuson working with local partners and a specificoutcome to increase community confidence.The results of this survey, however, appear toshow that this renewed focus is not extendingto the business community. While businesses areconcerned about crime in their local area, only aquarter were aware of a Community SafetyPartnership or a Crime and Disorder ReductionPartnership operating in their area. As pillars ofthe local community the majority of businessespolled felt there should be a greater role for thebusiness community in local crime partnerships.

Crime against business, if it continues to be aproblem, acts as a significant brake on growth.Local economies rely on the ability of businessesto thrive so that they can provide employmentand opportunities for local residents. Businesseswho responded to this survey indicated that crimehas a negative impact on business locationdecisions (73%), inward investment (62%),expansion decisions (57%), and recruitment(49%). As a result over 80% of businesses believethat crime against business is a problem in theirlocal area. Communities can only be sustained orrevived with the investment and jobs businessprovides.

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S E C T I O N O N E :

E X E C U T I V E

S U M M A R Y

1 Home Office,The Economic and SocialCosts of Crime, 2000


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2.1 BACKGROUND TO THE STUDYCrime against business affects everyone;it deprives communities of much neededshops and amenities, it destroys employmentopportunities and it can devastate the lives ofmanagers and staff traumatised by violence andintimidation. Small businesses with few resourcesare particularly affected by crime which, insevere cases, can lead to their closure.

In order to gain an understanding of theseriousness of crime against business, bothlocally and nationally, the BCC undertook thisCrime against Business Survey. The aim of thesurvey is to provide a better understanding ofthe nature, cost and extent of crime againstbusiness across the UK to encourage the HomeOffice and the Police to place the issue higher ontheir agenda.

Research by Design Ltd was commissioned toundertake this national survey with businessmembers of the Accredited Chamber Network.

2.2 OBJECTIVES OF THE RESEARCHThe objectives of the research were to identifyand establish:

I The extent and nature of crimes committedagainst businesses.

I The extent and nature of computer relatedcrimes and the steps that businesses havetaken to prevent these crimes.

I The cost of crime to businesses and itsimpact.

I The extent to which crime against business isa problem in the locality and businessawareness of community safety and crimereduction partnerships.

I The most useful sources of crime reductionadvice and the effectiveness of various crimereduction methods.

2.3 METHODOLOGYThe survey was conducted through a web basedquestionnaire, with business members invited toparticipate by email.

2.4 SAMPLE AND RESPONSE RATEIn all, 54 Accredited Chambers chose toparticipate in the study. Fieldwork wasundertaken between 21st January and 15thFebruary 2008. In total 3,916 business membersresponded to the 2008 Business Crime Survey.

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S E C T I O N T W O :

I N T R O D U C T I O N

T O T H E R E S E A R C H

Survey RbD Chamber in-house Totaladministered administered

Initial invitation 1,823 87% 261 13% 2,084 53%

1st reminder 494 91% 50 9% 544 14%

2nd reminder 909 92% 82 8% 991 25%Final reminder 30 31% 67 69% 97 2%

Postal 200 100% 200 5%

Totals 3,256 83% 660 17% 3,916 100%


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The majority of participating businesses aresmaller sized businesses; 77% have less than 50UK employees. 12% of businesses have between50 and 249 employees and 4% have 250 ormore employees.

Appendix 1 provides profile details ofparticipating businesses to the survey.

2.5 ANALYSIS AND REPORTINGThis report provides the findings given by thetotal sample (all member businesses). It alsoprovides the findings of sub-groups of the totalsample, defined by number of employees, annualturnover, business sector, etc.

By the very nature that surveys typicallyrepresent the views of a sample of thepopulation, sampling error must be consideredwhen evaluating the findings. This is measuredby the confidence level and confidence intervalof the data. Most commonly, market researchstudies require a 95% confidence level, indicatingthat we can be 95% confident that we have notarrived at the estimate by chance.

The confidence interval shows the variation thatmay exist in the findings drawn from a sample.For example, the survey shows that 58% ofbusinesses have experienced business crimein the last 12 months. However, due to intrinsiccharacteristics of sampling, this will besurrounded by a confidence interval, in thiscase 1.6%. This indicates that the real figure,(the true figure if the whole population weresurveyed) lies somewhere between 56.4%and 59.6%.

The following table gives the confidence

intervals for those findings that centre around10% or 90%, 30% or 70% and 50% given varyingsample sizes. (These assume a 95% confidencelevel using random sampling).

When comparing the results from differentgroups within a sample, say those with aturnover of less than 250,000 and those with aturnover of 250,000 or more, the difference inresults are tested for statistical significance. Thisway we know whether the differences are realor whether they could have occurred by chance.The test reflects the size of the samples, thepercentage giving a certain answer and thedegree of confidence chosen. Assuming a 95%confidence level, the differences between theresults of two separate groups must be greaterthan the values given in the table below to bestatistically significant.

Analyses of the findings in this report are basedon all respondents less those who chose not toanswer specific questions. Additionally, whereappropriate, those who stated dont know ornot applicable are excluded. The base (sample)size for each question is given in each chart.Where figures are not shown in the charts,these are 3% or less. *% indicates less than 0.5%.Where figures do not sum to 100%, this is dueto rounding.

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S E C T I O N T W O :

I N T R O D U C T I O N

T O T H E R E S E A R C H

Confidence intervals for given results,based on a 95% confidence level

Size of sample 10% or 90% 30% or 70% 50%

4000 0.9 1.4 1.5

3500 1.0 1.5 1.7

3000 1.1 1.6 1.8

2500 1.2 1.8 2.0

2000 1.3 2.0 2.2

1500 1.5 2.3 2.5

1000 1.9 2.8 3.1

Percentage difference required before the resultsmay be considered statistically significant

Size of sample 10% or 90% 30% or 70% 50%

1000 versus 1500 2.4 3.8 4.0

1000 versus 1000 2.7 4.1 4.4

1000 versus 500 3.3 5.0 5.4

500 versus 500 3.8 5.7 6.3


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S E C T I O N T H R E E :

E X P E R I E N C E A N D

R E P O R T I N G

O F C R I M E

3.1 EXPERIENCE OF CRIME IN THE LAST12 MONTHS

58% of businesses have experienced at least oneincidence of crime in the last 12 months.

I A greater proportion of larger businesses,in terms of their number of employees andannual turnover, have experienced businesscrime than smaller businesses. Over 80% ofbusinesses with more than 50 staff and over70% with a turnover of 1 million or morehave experienced at least one incidence ofcrime in the last 12 months. This compares to48% of companies with one to nine staff,30% of sole traders and 40% with a turnoverbelow 250,000.

I Greater proportions of businesses based inindustrial estates/areas (73%), shoppingparades (70%) and out of town/edge of townlocations (70%) have experienced businesscrime in the last 12 months compared tothose based elsewhere. Fewer of thoseworking from home (30%) and in officeblocks/complexes (47%) have experienced it.

I Proportionally more of those in the hotel andrestaurant sector (80%), construction andengineering (73%) and retail/wholesale (72%)have experienced business crime in the last12 months. By comparison, fewer of those inmarketing and media (43%) and professionalservices (44%) say the same.

I Further, more businesses located in urbanareas have experienced crime in the last12 months compared to those in rural areas;61% vs. 50%, respectively.

Experienced business crime in the last 12 months

Yes

58%No

42%

Base: 3857

30%

48%

70%

80%84%

Soletrader

1 to9

10 to49

50 to249

250+

Number of employees Base: 3857

40%

63%

71%

80%

Less than250,000

250,000to 1

million

1 millionto 5

million

5 millionor more

Annual turnover Base: 3857


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3.2 TYPE OF CRIME EXPERIENCED IN THE LAST12 MONTHS

Q1. Which of the following, if any, has your business experienced in the last 12 months?

Damage to vehicles Vehicle theft Burglary Attempted burglary Personal injury or violence Robbery Theft by an employee Arson Vandalism and graffiti Anti-social behaviour Fly-tipping e-crime None of these

Almost a quarter of businesses haveexperienced damage to vehicles, whilst a fifthhave experienced vandalism and graffiti and19% burglary (defined as an incident in whicha person entered business premises as atrespasser with the intention of committingtheft, unlawful damage, grievous bodily harmor rape).

Personal injury or violence, robbery and arsonare the crimes experienced by the lowestproportion of businesses.

I Damage to vehicles affects a proportionatelyhigher number of those in transport,distribution and storage (39%) andconstruction and engineering (38%) andfewer of those in marketing and media(17%), professional services (18%) andmanufacturing (21%).

I Vandalism and graffiti causes problems fora greater proportion of those based inshopping parades (38%) and those in publicor voluntary sector services (33%) whilst the

highest instance of burglary (32%),attempted burglary (21%) and fly-tipping(20%) is reported by businesses based inindustrial estates/areas. Fly-tipping affectsa greater proportion of those in theagriculture, forestry, fishing, mining andutilities sector (29%).

I Anti-social behaviour is greatest amongstbusinesses based in shopping parades(25%), town centres (22%) and those in thehotel and restaurant sector (39%). Theft by anemployee affects proportionally more of thosein the hotel and restaurant sector (27%).

I Vehicle theft is highest amongst those inconstruction and engineering (20%) andtransport, distribution and storage (15%).

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R E P O R T I N G

O F C R I M E

Other

Arson

Robbery

Personal injuryor violence

Vehicle theft

e-crime

Theft by an employee

Fly-tipping

Anti-social behaviour

Attempted burglary

Burglary

Vandalism and gra ti

Damage to vehicles

Base: 3857

24%

20%

19%

12%

12%

11%

7%

7%

3%

3%

9%

1%

1%

Experiences of crime in last 12 months


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3.4 REPORTING OF CRIME

Q3. What proportion of these incidents did youreport to the police?

Of those experiencing crime in the last12 months, 28% chose not to report the incidentsto the police, 21% reported up to half theincidents they experienced and 14% reportedmost of them. 37% reported every incident.

Proportion of incidents reported to the police

I A greater proportion of sole traders (48%),those with turnover less than 250,000(42%) and those who work from home (49%)did not report any of the instances of crimethey experienced to the police.

I At the other end of the scale, a greaterproportion of larger organisations typicallyreport all instances of crime to the police;46% of those with turnover of 5 million ormore.

3.5 REASONS FOR NOT REPORTING CRIME

Q4. For what reasons might you not report a crime?

The majority of businesses, 68%, suggest thatthey might not report a crime if there were noor only a relatively small loss or damage totheir premises or property. 36% claim theymight not report it because of a lack ofconfidence in any police response and 29%feel the time taken to report such an instancemight be too time consuming.

20% suggest they might not report crimeif it were just an attempt, whilst 18% wouldbe concerned about increases in theirinsurance costs.

Reasons for not reporting a crime

I Larger organisations, typically those withmore than 50 staff, turnover in excess of1 million, and those in the hotel andrestaurant sector are the least likely to reporta crime to the police if there were no loss orrelatively small loss or damage to premisesor property. Between 74% and 81% claim this.

I A greater proportion of sole traders (25%),businesses with less than 10 staff (21%) andthose in the construction and engineering

sector (26%) claim they might not report acrime due to concerns about increasedinsurance costs.

I A greater proportion of those in theagriculture, forestry, fishing, mining andutility sector (40%) and construction andengineering (37%) feel they might not reporta crime if it were too time consuming.

I A lack of confidence in police responseis greatest for those in the agriculture,forestry, fishing, mining and utility sector(49%) and the transport, distribution and

storage sector (51%).

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R E P O R T I N G

O F C R I M E

None 1% to20%

21% to50%

51% to80%

81% to99%

100%

28%

11%10%

9%

6%

37%

Base: 2032Other reason

Fearful ofnegative publicity

Fearful of reprisals

Unable tocontact police

Would increaseinsurance costs

It was only an attempt

Too time consuming

No condence inpolice response

Relatively small orno loss or damage topremises or property

68%

36%

29%

20%

18%

5%

4%

4%

5%

Base: 3857


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4.1 EXPERIENCE OF COMPUTER RELATEDINCIDENTS IN THE LAST 12 MONTHS

Q5.Which of the following computer related incidents,if any, has your business experienced within the last 12 months?

94% of businesses have suffered from spamemail during the past 12 months. Coupledwith this, 31% claim to have been the victimof phishing attempts, 23% have suffered fromspyware infection and 19% have experienced

equipment failure or data loss followingvirus infection.

11% of businesses have experienced credit cardfraud and 8% have had laptop or desktopcomputers stolen.

I Spyware infection and phishing attemptsaffect proportionally more businesses withfewer than 50 staff, with a turnover less than1 million, and those working from home.

I Proportionally more of those in marketingand media (37%) and professional services(36%) have been affected by phishingattempts than other business sectors,possibly because of their greater propensityto use email in the daily course of their work.

I Proportionally more of those in transport,distribution and storage (28%) andmanufacturing (26%) have been affected byequipment failure or loss of data followingvirus infection.

I Theft of PCs and laptops affects a greaterproportion of large businesses, those basedon business or retail parks, those based inindustrial estates/areas, those in thetransport, distribution and storage sectorand those in the public and voluntaryservices sector.

I Credit card fraud is a greater problem forthose with a turnover of 5 million or moreand those in retail and wholesale and thehotel and restaurant sectors.

S E C T I O N F O U R :

C O M P U T E R R E L A T E D C R I M E

A N

D E - C R I M E

Theft of server

Malicious loss/deletionof critical data

Theft of company data

Unauthorised disclosureof information

Hacking

Theft of PC/laptop

Credit card fraud

Equipment failure/loss

of data due to virus

Spyware infection

Phishing

Spam email 94%

31%

23%

19%

11%

8%

4%

1%

7%

Base: 3387

2%

2%

Experience of computer related and e-crimein last 12 months

12


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S E C T I O N F O U R :

C O M P U T E R R E L A T E D C R I M E

A N

D E - C

R I M E

4.2 PREVENTATIVE MEASURES

Q6.What steps have you taken to either prevent or recover from a computer related incident?

Some four-fifths of businesses use anti-virussoftware to help combat computer relatedincidents and 77% use SPAM filtering software.74% routinely back-up their business data; 70%store their data off-site.

63% have installed a software based firewalland 51% a hardware firewall, whilst 40% havedeveloped a strong password policy and 21%have compiled an asset inventory.

Steps taken to prevent/reduce computerrelated crime

I Larger organisations, typically those with 50 ormore staff and a turnover of 1 million or more,appear to have greater resources to be able todeal with computer related incidents.Significantly more of these organisations:

routinely back-up their data

have installed hardware firewalls

have developed strong password policies

have compiled an asset inventory

have a formal written security plan

have employed an IT manager orIT supplier responsible for security

use pc/server/laptop locks andsecurity devices

encrypt data

use security markings

I A significantly greater proportion of those in

the public and voluntary services sector havewritten a formal security plan, have employedan IT manager or IT supplier responsible forsecurity, use security markings and havecompiled an asset inventory.

I More of those in professional services usespam filtering software, routinely back-updata and encrypt data.

I More of those in manufacturing haveemployed an IT manager, have installed ahardware firewall, routinely back-up data andhave complied an asset inventory.

4.3 PROVISION OF A CENTRAL OR NATIONALE-CRIME BODY

Q7. e-crime is often not location specific whichmakes it hard to combat. Do you feel there

should be a central/national e-crime body to deal with the issue?

Almost three-quarters of businesses feel thereshould be a central or national body set upto deal with the issue of e-crime. This viewis universal.

Whether there should be a central/national body

dealing with e-crime

None of the above

Other steps

Use security markings

Encrypdata

Employed an IT supplierresponsible for security

Use PC/laptop locks orother security devices

Employed an IT managerresponsible for security

Written a formal security plan

Compiled an asset inventory

Developed a strongpassword policy

Installed a hardware Firewall

Installed a software Firewall

Routinely back-up data

Use Spam ltering software

Use anti-virus software 81%

77%

74%

63%

51%

40%

16%

14%

21%

Base: 3646

15%

14%

11%

5%

9%

2%

Store data o -siteYes 70%No 30%

Base: 2644

Base: 3858

Yes

74%

No

5%

Dont know

21%


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2 Source BERR EnterpriseDirectorate Analytical Unit 2006 data

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S E C T I O N F I V E :

T H E C O S T A N D I M P A C T

O F C R I M E

5.1 COST OF CRIME

Q8.What do you estimate to be the cost of crime to your business per annum, includingincident and lost opportunity costs?

The UK-wide annual cost of business relatedcrime is 12.6 billion, based on the numberof businesses by size reported by theEnterprise Directorate 2 .

73% believe that business crime results in coststo their business. While 16% suggest this cost is

under 1,000, 28% indicate that it is between1,000 and 5,000 and 29% say it is higher. Onaverage, the estimated annual cost to businessesresponding to this survey is 12,200.

Estimated cost of crime, including incident andlost opportunity costs

There are some striking differences when lookingacross business types, particularly the size ofbusiness. For example, in terms of number ofemployees, the mean cost of crime againstbusiness for sole traders is 1,700 per annum,rising to over 100,000 for those with 250 ormore employees.

For businesses with a turnover under 250,000 themean is 2,200 per annum. This rises to over 37,000for businesses with an annual turnover of 5 million ormore.

Looking at the business sectors, it is thosein transport, distribution and storage andconsumer services that have the greatestaverage annual costs.

0%

5%

10%

15%

20%

25%

30%

5 0 0

, 0 0 0

+

1 0

0 , 0 0 0

t o 4 9

9 , 9 9 9

5 0 ,

0 0 0

t o 9 9

, 9 9 9

2 5 , 0

0 0 t o

4 9 , 9

9 9

1 0 , 0

0 0 t o

2 4

, 9 9 9

5 , 0 0 0

t o 9 , 9

9 9

1 , 0 0 0

t o 4 , 9

9 9

5 0 0

t o 9 9

9

U n d e

r 4 9

9 N o

n e

27%28%

11% 11%

2% 2%2%

*Less than 0.5%. Base: All those able to estimate the cost (2461)

*%

8% 8%

Number of employees Mean Base

Sole trader 1,700 220

1 to 9 staff 3,900 971

10 to 49 staff 12,500 725

50 to 249 staff 21,000 306

250 + staff 101,600 91

Annual turnover Mean Base


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Has had no imapact

Other

Moved premises

Increased di cultiesrecruiting/retaining sta

Increased di cultyobtaining insurance

Postponed investment

Changed buildinglayout design

Damaged company image

Lost business

Increased insurance costs

Lowered sta morale

Disrupted trading

Wasted sta time 58%

32%

23%

18%

13%

9%

11%

Base: 3658

7%

2%

2%

2%

3%

31%

Looking around the UK, businesses in the SouthWest and those in Scotland have the greatest meancosts, some 28,300 and 23,500, respectively.

5.2 IMPACT OF CRIME

Q9.What impact has crime had on your business?

69% of respondents claim crime has impactedupon their business. 58% claim it has wastedstaff time and 32% suggest it has disruptedtrading. 23% report that staff morale hassuffered and 18% claim that insurance costshave increased.

13% feel they have lost business as a result ofbusiness crime, 11% believe their company imagehas been damaged and 9% have had to makechanges to their building layout and design.

15



O F C R I M E

Region Mean Base

Scotland 23,500 158

Wales 2,700 39

Northern Ireland 16,900 27

North West 13,000 349

North East 6,100 242

Yorkshire & Humber 17,300 410

East Midlands 5,800 130

West Midlands 9,900 432

East of England 4,200 201

South East 10,400 326

South West 28,300 83

London 14,200 63

Impact of crime


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I Larger organisations are more likely to beaffected by business crime in the waysdescribed above.

I Compared to the average, proportionallymore of those based in industrial estatesand edge of town areas claim businesscrime has wasted staff time, loweredstaff morale, resulted in changes to theirbuilding layout and design and increasedinsurance costs. Those on industrial estatessuggest it has also disrupted trading andpostponed investment.

I More of those based in shopping paradeshave experienced difficulties recruiting andretaining staff and postponed investment,whereas more of those in town centrelocations feel their company image hasbeen damaged and staff morale lowered.

I Wasted staff time and lowered staff moraleaffects proportionally more of those inmanufacturing, construction and engineering,retail and wholesale, hotel and restaurant andpublic and voluntary services sectors.

I Disruption to trading affects more ofthose in construction and engineering, retailand wholesale and transport, distributionand storage.

I Increases in insurance costs has had agreater impact on those in manufacturing,construction and engineering, retail andwholesale and transport, distribution andstorage sectors.

I More of those in hotel and restaurant,

transport, distribution and storage, consumerservices and public and voluntary servicessectors claim crime has damaged theircompany image.

I Proportionally more of those in retail andwholesale and the hotel and restaurantsectors say they have lost business as aresult of crime.

I A greater percentage of sole traders, thosewith an annual turnover of less than250,000, those working from home andthose working in the professional servicessector claim business crime has not affectedtheir business.

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O F C R I M E


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17



O F C R I M E

5.3 EFFECT OF CRIME

Q10. Do you feel the level of crime in an area has anegative effect on?

Almost three-quarters of businesses feel thatcrime levels in an area have a negative effecton business location decisions. 62% also believean areas crime levels can hamper inwardinvestment whilst 57% believe they can impactdecisions on expansion.

Almost half feel crime levels have a negative

effect on recruitment.

Whether level of crime has a negative impact on...

I Proportionally more of those in the retail andwholesale sector feel that inward investmentis negatively affected by area crime levels.

I More of those in the hotel and restaurantsector disagree that crime levels affectbusiness location or expansion decisions,whilst more of those in manufacturing andthose in construction and engineeringdisagree that recruitment is affected.

I A greater proportion of those based in office

blocks/complexes feel that recruitment isnegatively affected by an areas crime levelsand more of those in the transport,distribution and storage sector say the samefor expansion decisions.

Recruitment

Expansiondecisions

Inwardinvestment

Business locationdecisions

49%

57%

62%

73%

35%

28%

23%

18%

16%

15%

15%

9%

3639

3689

3694

3769

Base:

Yes No Dont know


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S E C T I O N S I X :

L O C A L

C R I M E A N D A W A R E N E S S

O F P A R T N E R S H I P S T O

T A C K L E I T

6.1 PERCEPTIONS OF LOCAL CRIME

Q11.How much of a problem do you think crimeagainst business is in your local area?

81% feel that crime against business is a problemin their local area. 8% feel it is a serious problem,34% a problem and 39% a small problem.

Extent of problem of crime against businessin local area

I Compared to the average, more of thosein industrial estates/areas (12%) and thoseworking in construction and engineering(13%) and transport, distribution and storage(14%) claim that business crime in their areais a serious problem.

I A greater proportion of sole traders (11%),those who work from home (12%) and thosein professional services (9%) suggest thatbusiness crime in their area is not a problemat all.

6.2 AWARENESS OF A COMMUNITY SAFETYPARTNERSHIP

Q12. Are you aware of a Community Safety Partnershipor a Crime and Disorder Reduction Partnership in

your area that brings together local organisations,helping them to work together to tackle crime?

Just 27% of businesses are aware of aCommunity Safety or Crime and DisorderReduction Partnership operating in their area.

Whether aware of Community Safety/Crime andDisorder Reduction Partnership in local area

Awareness rises with size of business, as thetable below shows.

I Proportionally more of those based inshopping parades, those in town centres,those in retail and wholesale, hotel andrestaurant and public and voluntary services

sectors are aware of a Community Safety orCrime and Disorder Reduction Partnershipoperating in their area.

39%

34%

Base: 3844

Not aproblem

at all

12%

8%

7%

Dontknow

A seriousproblem

A problem

A smallproblem

No

73%

Yes

27%

Base: 3819

Business characteristic % saying yes

Sole trader 21%

1 to 9 staff 24%

10 to 49 staff 28%

50 to 249 staff 30%250 + staff 4 3%

Under 250,000 23%

250,000 - 1 million 26%

1 million - 5 million 27%

5 million or more 31%

Statistically significant differences highlighted blue


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19

S E C T I O N S I X :

L O C A L

C R I M E A N D A W A R E N E S S

O F P A R T N E R S H I P S T O

T A C K L E I T

Q12b. If yes, do you feel that this Community Safety Partnership or a Crime and Disorder ReductionPartnership is effective?

Of those who are aware of a safety or crimereduction partnership, just 38% feel they areeffective. 19% feel they are ineffective and 43%are unable to express an opinion either way.

Whether feel these are effective

I The larger the business (by number ofemployees and annual turnover), the moreeffective they believe these partnershipsto be; 27% of sole traders suggest thesepartnerships are effective, rising to 45%for those with 250 or more staff.

I A greater proportion of sole traders,businesses with turnover less than250,000, those based at home or in officeblocks/complexes feel unable to comment.

6.3 BUSINESS COMMUNITY ROLE

Q13. Do you feel that the business community should be given a greater role in local crime partnerships?

Almost three-fifths of businesses feel that thebusiness community should be given a greaterrole in local crime partnerships, though 9%disagree and around a third could not comment.

Whether business community should be given

greater role in local crimepartnerships

I A greater proportion of businesses with250 or more staff (66%) and those inconsumer services (67%) feel that thebusiness community should be given agreater role in local crime partnerships.Sole traders, especially, could not comment.

Don't knowNoYes

Base: 100

38%

19%

43%

Don't knowNoYes

Base: 387

59%

9%

32%


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20

S E C T I O N S E V E N :

C R I M E R

E D U C T I O N

7.1 CRIME REDUCTION ADVICE

Q14. From which ONE of the followingorganisations have you found crimereduction advice most helpful?

56% of businesses have sought advice on crimereduction; 23% indicate that the police are themost helpful in providing this advice. This isfollowed by security companies, insurancecompanies and Chambers of Commerce.

Organisation most helpful in providing crimereduction advice

4% of businesses suggest they have used othersources of advice, such as IT companies and ITConsultants, presumably to help combat SPAMemail, phishing, spyware and other e-crimes.

I Just 38% of sole traders have sought crimeprevention advice. This figure rises to 50%for businesses with 1 to 9 staff, 61% for 10 to49 staff, 70% for 50 to 249 staff and 82% forthose with 250 or more staff.

I Proportionally more businesses with 10 ormore staff and those with a turnover of5 million or more have found the police, asecurity company or insurance company themost helpful in providing crime preventionadvice compared to others.

I More small businesses, those with up to9 staff and those with a turnover under250,000, and those in the professionalservices sector have found advice fromChambers of Commerce most useful.

I A greater percentage of those located intown centres and out of town/on the edgeof town, and businesses in the hotel andrestaurant, consumer services and publicand voluntary services sectors have foundcrime prevention advice from the policemost helpful.

I Advice from a security company has provedmost helpful for proportionally more ofthose based on a business or retail park,those based on an industrial estate/areaand those in the transport, distribution andstorage sector.

I More of those based on an industrialestate/area, based out of town/on the edgeof town and those in the manufacturing andconstruction/engineering sectors have foundcrime prevention advice from an insurancecompany most helpful.

I Unsurprisingly, a greater proportion ofbusinesses in the retail and wholesale sectorhave found advice from a businesswatch/shop watch scheme most helpful.

Never soughtadvice

Other

Local authority

Business Advisor

Business Watch/Shop Watch

Chamber ofCommerce

Insurancecompany

Securitycompany

Police 23%

9%

8%

6%

2%

1%

2%

Base: 3606

4%

44%


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7.2 EFFECTIVENESS OF CRIME REDUCTIONMEASURES AND INITIATIVES 3

Q15. How effective do you consider each of thefollowing to be in reducing crime against

your business?

Nine out of ten companies feel that a fastpolice response (92%), visible policing (91%)and computer security devices and software(91%) are effective ways of reducing crimeagainst their business. This is followed byvideo camera surveillance (86%) and toughersentencing (79%).

Effectiveness of security measures

I Proportionally more of those businesseslocated in town centre locations and thoseoperating in the retail and wholesale sectorfeel video camera surveillance is effective inreducing crime.

I A greater proportion of businesses with aturnover of 1 million or more, those in thehotel and restaurant sector and those intransport, distribution and storage sectorsfeel tougher sentencing is effective. Fewer inthe public and voluntary services sector saythe same.

21


C R I M E R E D U C T I O N

Toughersentencing

Video camerasurveillance

Computer securitydevices/software

Visible policing

Fast policeresponse

3270

3048

3166

3255

3212

39%

52%

37%

60%

63%

47%

27%

54%

31%

29%

Base:

N o t a

t a l l e

e c t i v e

N o t v

e r y e

e c t i v e

F a i r l y

e e c

t i v e

V e r y

e e c

t i v e

11%

16% 5%

8%

6%

6%

3 Those statingdont know have beenremoved from the analysisto aid comparison acrossmeasures.


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22

7.3 EFFECTIVENESS OF CRIME REDUCTIONMEASURES AND INITIATIVES, continued 4

Q15. How effective do you consider each of thefollowing to be in reducing crime against

your business?

79% of companies feel that better staff trainingis an effective way to reduce crime againstbusiness. 78% believe the same is true forsecurity grant assistance and 75% for privatesecurity patrols, 72% for crime preventionadvice and 67% for business watch/shopwatch schemes.

Effectiveness of security measures

I More of those with 250 or more staff, thosein a town centre, those based at home, thosein retail and wholesale, hotel and restaurantor public and voluntary services sectors feelbetter staff training is an effective crimereduction measure.

I More of those with up to nine staff and thosewith turnover of up to 1 million feel thatgrant assistance for security is effective.Those in retail and wholesale and consumerservices also feel the same way.

I Private security patrols are seen as aneffective crime reduction measure by moreof those with 50 or more staff, those with aturnover of 1 million or more and thosebased on a business park or retail park.Fewer of those based at home share thisview, though more of these businesses feelthat crime prevention advice is effective.

I More of those in the public and voluntaryservices sector feel that crime preventionadvice is effective and fewer of those in thetransport, distribution and storage sector.

I A greater proportion of sole traders, thosewith an annual turnover of less than250,000 and those in town centre locationsfeel that Business Watch/Shop Watch is aneffective crime reduction measure.



4 Those stating dont knowhave been removed from

the analysis to aidcomparison acrossmeasures. It should benoted that over a third ofbusinesses were unable tocomment on grantassistance for security andbusiness watch/shop watch.

Business Watch/Shop Watch

Crimeprevention advice

Privatesecurity patrol

Grant assistancefor security

Better statraining

2923

2114

2653

2163

2997

15%

21%

30%

38%

22%

57%

46%

45%

40%

57%

Base:

N o t a

t a l l e

e c t i v e

N o t v

e r y e

e c t i v e

F a i r l y

e e c

t i v e

V e r y

e e c

t i v e

23%

24%

19%

14%

17%

5%

9%

6%

8%

4%


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7.4 POLICE COMMUNITY SUPPORT OFFICERS(PCSO S)

Q16. Many areas now have Police Community Support Officers (PCSOs). Part of their remit isto introduce themselves to businesses and thelocal community whilst patrolling the area,thereby developing local knowledge and relationships. Are you aware of PCSOs

patrolling your local business area?

If yes, do you (or someone within your company)know your local PCSOs by sight or by name?

If yes, do you feel your PCSOs have had animpact on crime or perceptions of safety in

your area?

Just under a third of businesses are aware ofPCSOs patrolling their local business area.

Aware of PCSOs patrolling local business area

For those who are aware, roughly half know theirlocal PCSOs by name or by sight and 43% feelthat PCSOs have had an impact on theperceptions of safety in their area, though 24%disagree and 33% could not comment.

I More of those based in a shopping parade ortown centre location, and more in the retailand wholesale, hotel and restaurant,consumer services or public and voluntaryservice sectors are aware of PCSOs in theirlocal area.

I For all those who are aware of PCSOs,significantly more businesses with 10 or morestaff and those in rural locations know theirlocal PCSOs by sight or name.

I Proportionally more of those in the retail andwholesale, hotels and restaurants and publicand voluntary service sectors know theirlocal PCSOs by sight or name.

I A greater proportion of businesses with 250or more staff feel that PCSOs have had animpact on crime perceptions in their areacompared to sole traders.

23

Base: 3403

No

68%

Yes

32%

NoYes

Base: 104

49%51%

Don't knowNoYes

Base: 105

43%

24%

33%



Whether know local PCSOs by sight/name

Whether feel PCSOs have impactedon perceptions of safety in local area


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7.5 CONFIDENCE IN THE POLICE

Q17. How confident are you that the police... understand the issues most important to

your business? are dealing with the issues most important to your business?

56% of businesses are not confident that thepolice understand the issues that are mostimportant to them. Further, 68% do not feelconfident that the police are dealing with theissues that are most important to their business.

Confidence that the police...

A greater proportion of businesses with between1 and 49 staff and those with a turnover ofbetween 250,000 and 1 million lackconfidence that the police understand and aredealing with the issues most important to them.

I More of those based in industrialestates/areas (62%) and fewer of those intown centre locations (51%), the hotel andrestaurant (43%) and public and voluntaryservices (42%) sectors lack confidence thatthe police understand the most importantissues to their business.

I More of those based in industrialestates/areas (75%), in manufacturing(72%) or transport, distribution and storage(75%) and fewer of those in the hotel andrestaurant (55%) and public and voluntaryservices (51%) sectors are not confident

that the police are dealing with the mostimportant issues to their business.

24

Not at allcondent

Not verycondent

Fairlycondent

Verycondent

...are dealing with mostimportant issues

to business3132

...understand mostimportant issues

to business3232Base:

17%

39%

37%

7%

23%

45%

28%

4%

Business % not confidentcharacteristic (either not very/not at all)

understand dealing withissue issue

Sole trader 52% 61%1 to 9 staff 60% 70%

10 to 49 staff 56% 68%

50 to 249 staff 50% 64%

250 + staff 43% 61%

Under 250,000 57% 66%

250,000 - 1 million 62% 73%

1 million - 5 million 57% 71%

5 million or more 51% 66%

Statistically significant differences highlighted blue




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7.6 BUSINESS CRIME ADVISORS AND KEYPERFORMANCE INDICATORS

Q18. Should local police forces have dedicated Police Business Crime Advisors to help support businesses and raise the profile of crimesagainst business?

Q19. Currently the police are measured against anumber of Key Performance Indicators, such as

satisfaction with responses to 999 calls and with responses to domestic burglaries. Do youthink that crime against business should become a Key Performance Indicator for the

police?

88% of businesses feel that local police forcesshould support businesses through the use ofdedicated Police Business Crime Advisors and85% feel that business crime should become aKey Performance Indicator.

Views on Business CrimeAdvisors and KPI

25



Crime againstbusiness should

become a KeyPerformance

Indicator

Local police

forces shouldhave Police

Business CrimeAdvisors

3270

3255

Base:

85%

88%

15%

12%

Yes No


26/28

Employee size

Sole trader 9%

1 to 9 41%

10 to 49 27%

50 to 249 12%

250 or more 4%

Not stated 7%

Trading years

Under a year 6%

1 to 2 years 9%

3 to 5 years 14%

6 to 10 years 14%

11 years or more 52%

Not stated 5%

Annual turnover

Under 50,000 11%

50,000 - 249,999 17%

250,000 - 499,999 9%

500,000 - 999,999 10%

1 million - 4,999,999 20%

5 million or more 12%

Unknown/Not stated 20%

Business sector

Agriculture, forestry, fishing,mining, utilities 2%

Manufacturing 14%

Construction/engineering 7%

Retail/wholesale 10%

Hotels/restaurants 5%

Transport/distribution/storage 5%

Marketing/media 7%

Professional services 33%

Consumer services 6%

Public and voluntary sector services 5%

Other services 3%Not stated 4%

Business setting

Urban 72%

Rural 23%

Not stated 6%

Business location

Business park 14%

Industrial estate 21%

Retail park 1%

Enclosed shopping centre 1%

Town centre 18%

Shopping parade 2%

Out of town 13%

Office block/complex 8%

Home 18%

Residential area 2%

Other 2%

Not stated 7%

Region

Scotland 6%

Wales 2%

Northern Ireland 1%

North West England 14%

North East England 10%

Yorkshire and Humber 17%

East Midlands 5%

West Midlands 17%East of England 8%

South East England 14%

South West England 3%

London 3%

Not stated *%

26

A P P E N D I X O N E

SAMPLE PROFILE


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Ayrshire Chamber of Commerce & Industry

Barnsley and Rotherham Chamber of Commerce

Bedfordshire & Luton Chamber of Commerce

Birmingham Chamber of Commerce & Industry

Black Country Chamber of Commerce

Bradford Chamber of Commerce

Cambridgeshire Chamber of CommerceChannel Chamber of Commerce

Chester, Ellesmere Port and North WalesChamber of Commerce

Cornwall Chamber of Commerce & Industry

Coventry and WarwickshireChamber of Commerce

Cumbria Chamber of Commerce & Industry

Derbyshire and NottinghamshireChamber of Commerce

Doncaster Chamber of Commerce & Enterprise

Dorset Business, The DorsetChamber of Commerce & Industry

Chamber of Commerce East Lancashire

Edinburgh Chamber of Commerce

Essex Chambers of Commerce

Glasgow Chamber of Commerce

Greater Manchester Chamber of Commerce

Chamber of Commerce

Herefordshire & WorcestershireHertfordshire Chamber of Commerce & Industry

Hull and Humber Chamber of Commerce,Industry & Shipping

Isle of Wight Chamber of Commerce, Tourism& Industry

Kent Invicta Chamber of Commerce

Lancaster District Chamber of Commerce,Trade & Industry

Leeds Chamber of Commerce

Leicestershire Chamber of Commerce

Lincolnshire Chamber of Commerce & Industry

Liverpool Chamber of Commerce & Industry

London Chamber of Commerce & Industry

Mid Yorkshire Chamber of Commerce & Industry

Milton Keynes & North Bucks Chamberof Commerce

Newport & Gwent Chamber of Commerce

Norfolk Chamber of Commerce

North and Western LancashireChamber of Commerce

North East Chamber of Commerce

North Hampshire Chamber ofCommerce & Industry

North Staffordshire Chamber of Commerce& Industry

Northamptonshire Chamber

Northern Ireland Chamber of Commerce& Industry

Portsmouth & South East Hampshire Chamberof Commerce and Industry

Renfrewshire Chamber of Commerce

Sheffield Chamber of Commerce & Industry

Shropshire Chamber of Commerce & Enterprise

Southern Staffordshire Chamber of Commerce

& IndustrySt Helens Chamber

Suffolk Chamber of Commerce

Surrey Chambers of Commerce

Thames Gateway (Kent) Chamber of Commerce

Thames Valley Chamber of Commerce

West Wales Chamber of Commerce

York & North Yorkshire Chamber of Commerce

27

A P P E N D I X T W O

PARTICIPATING CHAMBERS


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BRITISH CHAMBERS OF COMMERCE65 PETTY FRANCELONDON SW1H 9EUUNITEDKINGDOM

T +44 (0)20 7654 5800F +44 (0)20 7654 [email protected] britishchambers org uk

BCC Business Crime Survey [1]

Documents

Transcript of BCC Business Crime Survey [1]