CSR

Companies urged to take better care of vulnerable customers

Companies must do more to identify and protect their vulnerable customers, a report from the All Party Parliamentary Group (APPG) on Corporate Responsibility has concluded. In particular, the results of the APPG's year long enquiry led the group to call on companies to include issues around vulnerable customers as part of social and environmental reporting, despite the issue not being included in existing standards and frameworks.

According to Business in the Community, which supported the enquiry: "Vulnerable customers are those people whose personalities, experience or income make them especially prone to problems". This can include, for instance, people with gambling tendencies, people vulnerable to alcohol abuse, people without education to manage finance, and people without English as a first language.

The enquiry heard from companies that have implemented innovative policies covering issues such as addiction, eating disorders and child protection. Also heard from were leading consumer protection agencies.

Included in the APPG's report is a nine point action plan to assist companies in addressing these issues. Among the advice offered in the plan is:

• Carry out a review to identify potential vulnerable customers within your customer base, or within the customer base of your corporate customers.

• Be prepared to challenge standard industry assumptions that may be unhelpful in supporting vulnerable customers.

• Seek partnerships with trusted organisations that know the problems of these vulnerable customers best.

Commenting on these findings, John McFall, chairman of the Treasury select committee, said: "Many people who are financially excluded fall into the vulnerable customer category ... People on low incomes or welfare benefits should have the same access to financial services and advice as those who are better off and they should not have to pay a premium for them. The findings that the advertising and marketing of goods and services to vulnerable people requires to be handled in a responsible and sensitive way, are very welcome".

August 2007