(Inspired by the DFID Booklet)
by Louise Sutherland
It’s vital to remember that even when your aren’t spending your money, someone else is. Your bank will be lending your hard earned cash to a wide range of companies engaged in different businesses around the globe.
If you want your bank to match your ethical concerns and not use your money to support industries such as arms, dangerous chemicals, the tobacco industry or factory farming, you need to choose an ethical bank.
The best known ethical bank is the Co-Operative bank and its internet arm Smile, which offers current and savings accounts, ISA’s mortgages, loans, credit cards, and business banking. The Co-Operative bank operates a negative screening policy and will not lend money to businesses or governments who fail to uphold basic human rights, or whose links to oppressive regimes cause concern. Triodos Bank comes from a different angle and uses the money invested in it to support social enterprises, Fairtrade, green technologies and socially just companies. The Ecology Building Society uses its members' money to promote sustainable lifestyles and greener homes.
Ethical Investments?
Where we put our money is as important as where we spend it. Did you know it makes a difference whether your money is in a bank or a building society? Building Societies are not involved in day-to-day lending to companies, your interest payments are not being used to finance the activities of companies that you would not wish to support (arms, animal testing, pornography, tobacco etc). Indeed, the fact that the lenders in this category are mutual societies (owned by the customers, not shareholders) is seen by many as an ethically positive factor. Banks are money lenders, therefore support a variety of industries. Some banks run their businesses according to an ethical code of conduct. Where they have corporate customers, the ethical policy will exclude companies operating in certain areas (such as weapons manufacture or causing environmental damage) and support companies that are improving their social or environmental impact.
Do you know what your savings or mortgage is paying for? Does your bank have an ethical policy? Or does is just invest in whatever makes it money? Are you supporting the arms trade, the development of nuclear weapons, factory farming, forest destruction? If you bank with anyone except the Co-Operative bank, its online branch Smile, Triados bank or the Ecology Building Society the answer is a likely to be a sickening yes.
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