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Co-op Consults Customers on Ethical Policy

30-September-2008, Writes Hazel Cottrell hazel.cottrell@consumerchoices.co.uk

The Co-operative Bank yesterday launched its most extensive ethical policy consultation for more than a decade.

Ethical concerns are top of the agenda for The Co-op (www.co-operativebank.co.uk). Famous for telling customers what it does with their money, the bank is now looking for customer support to extend the ethical policies it has operated since 1992.

The Co-op will send to each of its two million customers an extensive questionnaire, inviting them to express their views and vote on a wide range of ethical issues, such as human rights, international development, ecology and social enterprise. It will use the views which are expressed in the survey to update its ethical policy, which is due to be published in the New Year.

The bank said it believes its ethical approach to business gives it a competitive advantage over other banks and businesses. David Anderson, Chief Executive of The Co-operative Bank, said: “In the current economic climate we believe it is more important than ever to take an ethical approach to business. Our unique ethical policy has been at the core of our business since 1992 and has proved to be an excellent reflection of our customers’ views.”

The customer survey aims to determine whether account holders support the bank’s proposal to extend its ethical policies. The bank already avoids companies involved in the extraction and production of fossil fuels and those involved in animal experimentation for cosmetic or household products. The extensions would include the exclusion of finance to those engaged in:

• The distribution of fuels with a high global warming impact, such as tar sands and certain bio-fuels.
• The manufacture or transfer of cluster bombs and depleted uranium munitions.
• The exploitation of great apes, for experimentation or general commercial use.

Anderson explained: “We appreciate that these are difficult ethical issues but we make no apologies for putting them in front of our account holders. Our policy has always been at the cutting edge and we wish to remain a progressive business voice but we cannot do that without the support of our customers.”

Chris Eagle, commercial manager at CreditChoices.co.uk is impressed with the bank’s customer interaction. He says: “With the current uncertainty within the financial sector, the Co-op’s ethical stance does give it a unique selling point. With many customers losing faith in big corporations, it’s significant that the Co-op is giving its customers the chance to have their say. Offering good value personal loans and credit cards that reflect its ethical stance, the Co-op’s popularity looks set to rise.”