PressRelease

Forimmediate release

Friday4 April 2003

The Cost of Crime

The Institute ofDirectors (IoD) today published a report, Crime:its extent, impact and consequences for business, which showed that forthose directors whose businesses had been affected by crime over a twelve monthperiod, the most commonly mentioned cost amounted to around 2,000 each. Thereport, based on a survey of 675 IoD members, also revealed the followingfindings:

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 respondentswhose businesses had been affected by crime had faced higher insurance costs.41% had been obliged to make alterations to their buildings layout to improvesecurity. 23% said that the effect of crime was to disrupt trading in some way.

86% (578) ofrespondents were not confident that if they were to be the victim of crime thatthe criminal would be caught.

Richard Wilson,Business Policy Executive, 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 can imperila businesss viability.

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However, it is notjust employers and staff who pay the price of crime against business so doesthe public. This is because businesseswill pass on the costs of criminal activity to the consumer in terms of higherprices, an inferior quality of service, or by closing down their enterprisealtogether.

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 4.4.03 No.159

Notes to Editors:

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