Why we have ethical policies
It's no secret that banks and insurers are in business to make profits. One way they do this by taking your money and lending it to someone else at a higher rate of interest. But what they rarely tell you is who they lend it to.
With other banks and insurers, you have no say in where your money is invested and how these companies behave. For example, your money could be loaned to companies involved in the fur trade, arms dealers who supply oppressive regimes, or multi-national companies with poor environmental records - and you wouldn't know a thing about it.
That's where we're different. You tell us what you'd like us to do with your money. In 1992, after a long consultation with our customers, The Co-operative Bank launched its Ethical Policy - a first amongst UK high street banks (and still unique today). Thirteen years later, The Co-operative Insurance did the same, launching its Ethical Engagement Policy - a world first for the insurance industry - which also underpins The Co-operative Investments business.
What both policies have in common is that they ensure that we'll always stand up for the issues that our customers feel passionate about. We allow you to have your say on the issues that matter to you, such as human rights, animal welfare, fair trade and genetic modification.
The two policies work in slightly different ways
The bank will not invest in businesses that operate in areas of concern to our customers. Our insurance and investment businesses take a different approach using their influence as a corporate shareholder to change big companies from the inside. Since the Bank launched it's ethical policy in 1992 it has turned away over £1 billion in business - however, over the same period, the Bank's total commercial lending has grown from £571 million in 1992 to £4.4 billion in 2008 - an average of 14% a year.
A direct influence on our investments
As a corporate investor we carry a lot of influence, and when it comes to issues of concern to our customers, we are prepared to push for change within the companies that we invest in. So, for example, in recent years we have been putting pressure on companies to cease trading in fur.
It's these policies that set us apart
On the surface we may seem similar to other financial providers, but what makes us unique is our guarantee that we won't do anything with your money that conflicts with our ethical policies (which, ultimately, you help decide).
So simply by being our customer, you're helping us change the world, little by little, every day.
Don't just take our word for it
Alongside a host of internal controls, every year we invite an independent auditor to comment on the implementation of our policies. We publish the findings in The Co-operative Group Sustainability Report.
We've always been good with money
As well as representing the values of our customers right now, our ethical policies are symbolic of our history as co-operative business.
Since The Co-operative Movement was created in 1844 it has been based on doing what's right for members and the wider community.
Like to know more? Read about the history of The Co-operative
Everyone benefits
We believe that by doing this we can invest for the long-term benefit of customers and, at the same time, use our influence as an investor to improve our environment and society. See how we manage our Ethical Engagement Policy.
