The Co-operative Bank - good with money.
Over 17 years of our customer-led Ethical Policy.
[David Andersen, Chief Executive, Co-operative Financial Services]
The Ethical Policy is as central to the bank today as it was when it was introduced back
in 1992. It was against the nature of the times then. People were saying 'business is
business'. It wasn't about ethics. But the policy's stood the test of time and it's at the
heart of what The Co-operative business is about.
It says we care about more than just profits, we care about the way in which those
profits are made.
[Jonathon Porritt, Founder Director, Forum for the Future]
What does an ethical bank look like? It isn't just about the environment. It's as much
about human rights, about supply chains, about animal welfare issues, about working
conditions in developing countries.
[Michelle Thew, Chief Executive, British Union for the Abolition of Vivisection (BUAV)]
In 1992, when The Co-operative Bank introduced its policy to end cosmetics testing on
animals, it was a very radical step.
[Kate Allen, UK Director, Amnesty International]
When The Co-operative Bank launched its Ethical Policy, it was absolutely in the
vanguard. We were absolutely delighted as Amnesty International to be working
alongside The Co-op.
[Jonathon Porritt, Founder Director, Forum for the Future]
So when the Bank began to bring forward some of its thinking and some of its ideas,
which led to the policy in 1992, it was well ahead of its time.
[Advert]
These are the trees the Wilkinsons planted, with the interest on their savings account
which, they didn't realize…had been loaned to an industrial giant, that ceaselessly
spews toxic waste.
[Kate Allen, UK Director, Amnesty International]
The approach of business to human rights in the late 80's and early 90's was one where
they didn't see its relevance.
[Harriet Lamb, Executive Director, The Fairtrade Foundation]
What was very unusual when The Co-op Bank did this, I think they were really among
the first to say... lets offer Fairtrade in the vending machines for all our staff. I think that
was also the great thing about The Co-op Bank initiative, they did it themselves...then
they also wrote to hundreds of companies and said 'look we've shown it can be done'
you can have Fairtrade coffee in your vending machines ….and staff will enjoy it and
like it, so we challenge you to follow the lead we've set.
[TV footage]
The hunting days of the Bedfordshire ferrets who've fallen victim to The Co-op's political
correctness are over. They'd never had made the bank's fortune admittedly, but their
account will soon be back with Lloyds. We're joined now by Simon Williams of The Coop
Bank. How much business are you prepared to lose in your campaign against
ferrets. “Well, it's not a case that's come up many times, but what we are prepared to
do is ensure that the policies we've mandated...to carry out with our customers about
what we'll do with their money, are carried out”.
[TV footage]
Well, The Co-operative Bank is one of several companies that has become well-known
for applying ethical standards to their business… but a new advertisement from the
Bank has been rejected by Vogue magazine for being what Vogue called 'tediously
controversial’. The advert shows rabbits being used in a laboratory experiment, behind
a typical soft-focus face cream ad.
[Cinema advert]
Touch the trip-wire of the Valmara 69 bounding landmine and ball-bearings will be
blasted through those of you seated in rows A to G at over 1000 mph. Literally tearing
you apart. Those in rows H - L will be maimed beyond all recognition, while the rest of
you will be left critically wounded. Valmara 69 landmines cost just £30 each. Certain
regimes throughout the world borrow millions of pounds in order to plant landmines
indiscriminately. Which is why one bank never has, and never will, finance the supply of
arms to oppressive regimes.
[Michelle Thew, Chief Executive, BUAV]
So, in 1998 The Co-operative Bank went one step further and actually extended their
Ethical Policy to household products. This is a very significant step, because even now
in 2009, it's still perfectly legal to test household products on animals.
[Jonathon Porritt, Founder Director, Forum for the Future]
In 1998 when the Bank began to look, in particular, at the importance of climate change
and not doing business with those who...are leading the contribution to climate change
and a host of other policies which, since then, the Bank has decided are...ethically so
important, in its own mind and the minds of if its customers, that it won't do business
with those who make their money out of it.
[Kate Allen, UK Director, Amnesty International]
In 2001, the Bank adopted the principles that are in The Universal Declaration of
Human Rights. It was the first financial institution to do that. It was unprecedented to
see financial institutions taking these positions, where they would say that they didn't
want to be involved...and they didn't want their customers involved in oppressive
regimes, such as in Burma.
[Advert]
This is a cluster bomb. One of the most commonly used air-delivered weapons in the
world. It carries hundreds of sub-munitions or bomblets. Each no bigger than a drinks
can. Money can make a world of difference.
[Michelle Thew, Chief Executive, BUAV]
Look at great apes, they're are our closest living relative and it's particularly significant
that...The Co-operative has decided that now is the time to say, that we don't want to
see them abused.
[Jonathon Porritt, Founder Director, Forum for the Future]
The essence of ethical banking is the science that underpins it. Tar sands provides the
oil companies with an opportunity to get an additional source of hydro-carbons, of oil out
of the ground but…every single barrel of oil equivalent, you get from the tar sands,
causes at least twice as much CO2.
[Kate Allen, UK Director, Amnesty International]
I think the extension of the policy to cover indiscriminate weapons is excellent...and it's
great to see that extended to involve cluster bombs, whether they are used by any
government across the world. As Amnesty International, we are delighted by that
development.
[Jonathon Porritt, Founder Director, Forum for the Future]
I think for a lot of people working in the finance sector, there's still something counterintuitive
in turning down business...and it is the clarity with which the Bank has decided
not to invest in companies involved in certain sectors over the years...that shows the
difference between its approach to banking and that of mainstream banking.
[Michelle Thew, Chief Executive, BUAV]
It's also important that consumers who care about these issues have somewhere that
they can bank and somewhere that they can shop...that doesn't conflict with their own
ethical values.
[Kate Allen, UK Director, Amnesty International]
For us at Amnesty International it is great to know that The Co-operative Bank's
customers share our concerns about human rights...and I know that other businesses
are watching The Co-op to see where they need to be following.
[David Andersen, Chief Executive, Co-operative Financial Services]
Those things that started out in the Ethical Policy have become Public Policy, and we
want to lead that Public Policy forward...with the revisions to the Ethical Policy that are
being made now. The fact that 80,000 of our customers have participated in updating it,
just shows how important it is to them and we think...a third of the Bank's profits come
from customers who've joined it just because of the Ethical Policy.
So, it's been a real differentiating factor for the Bank. It's been part of our heritage and
we see it as central to what the bank stands for going forward.