Gallup: Americans down on Andersen, ENE; up on MSFT

[Doug Henwood]

[all you MSFT-haters out there - there ain't many of you!]

Gallup - May 1, 2002

Americans Decidedly Negative Toward Arthur Andersen, Enron
Have very positive view of Microsoft

by Jeffrey M. Jones

GALLUP NEWS SERVICE

PRINCETON, NJ -- News about corporations has moved beyond the 
business pages to the front pages of most newspapers in 2002. For 
much of the earlier part of the year, the collapse of the Enron 
energy corporation and the role its accounting firm, Arthur Andersen, 
played in its demise were major news stories. Last week, Bill Gates, 
the chairman of the Microsoft Corporation, testified in a federal 
court against proposed changes to the company's software products. 
These changes are sought by nine state attorneys general who have 
refused to accept a consent decree between Microsoft and the Justice 
Department that would resolve the company's antitrust case.

A recent Gallup poll shows the public has very negative views of 
Enron and Arthur Andersen, though many Americans are not familiar 
with the accounting firm. The poll shows that the public is not 
negative toward all large corporations, however. Nearly eight in 10 
Americans say they have a favorable opinion of the Microsoft 
Corporation, the most positive reading Gallup has recorded for 
Microsoft over the five years these attitudes have been measured.

Arthur Andersen, Enron Images Suffering From Energy Company's Collapse

The poll, conducted April 22-24, shows that nearly half of Americans, 
49%, have an unfavorable opinion of the Arthur Andersen accounting 
firm, while just 11% have a favorable opinion. A substantial number 
of Americans, 40%, are not familiar enough with Arthur Andersen to 
rate it. A federal grand jury indicted Arthur Andersen for 
obstruction of justice for the destruction of evidence related to a 
federal investigation into the Enron collapse. A trial is scheduled 
to begin later this month. The company just announced layoffs of 
roughly one-quarter of its workforce.

Nearly three in four Americans, 74%, have an unfavorable opinion of 
the Enron energy corporation, while only 8% have a positive view. The 
Houston-based energy company filed the largest bankruptcy claim in 
U.S. history last December, leaving many employees jobless and 
without much of their retirement savings. Several Enron executives 
have already testified before Congress about the company's collapse. 
About one in five Americans do not have an opinion on Enron.

Microsoft Rated Positively

In stark contrast to Enron and Andersen, the vast majority of 
Americans have a favorable opinion of Microsoft. The poll finds 79% 
of the public giving Microsoft positive ratings, while just 12% have 
a negative view of the computer software company. Microsoft produces 
the Windows series of operating systems, used on most personal 
computers. A federal judge found Microsoft guilty of violating 
antitrust laws, and the federal government and Microsoft negotiated a 
settlement last year to end the case. However, the settlement is 
still awaiting court approval, and nine states are seeking to impose 
tougher penalties on the software company. Last week, Microsoft 
chairman Bill Gates testified in Washington against those states' 
proposals.

Microsoft's current rating is up sharply from a poll conducted last 
summer, at which time 60% of Americans held a positive view of 
Microsoft, and is the highest Gallup has recorded in nine polls 
dating back to 1998. The previous high was a 67% favorable rating in 
November 1999.