Citizen’s Bank of Canada, launched in 1997, operates entirely by telephone, automated tellers and the Internet. Its mission is to be a socially responsible bank. “We are a bank that believes we are, in fact, stewards of the funds we hold,” says their recently released Ethical Policy. “We demonstrate our leadership by being responsible and conscientious about where our money comes from and what we do with it.” The company committed to subject itself to annual third-party audits to ensure compliance with the policy.
The bank was formed to take the VanCity (Vancouver City Savings Credit Union) model across Canada. VanCity is one of the best known financial institutions in Western Canada and the largest credit union in Canada. Its operating belief is that it isn’t just possible to “do good while doing well”, it makes excellent business sense to do so.
Citizens is the only Canadian bank that bases its investment decisions on an Ethical Policy. The policy was developed through consultation with Citizens Bank members, employees, and non-profit organizations working for positive social change. The bank does not invest in or do business with companies that violate human or animal rights, produce nuclear energy or tobacco products, harm the environment, or have a poor employee relations record.
In terms of the environment, Citizens compares companies to their best of sector counterparts. It avoids businesses with poor environmental compliance records; that manufacture products or emits chemicals that contribute to ozone-depletion, acid rain or global warming; utilities that generate electricity from nuclear fuel and companies that support the nuclear industry through the provision of products or services that enable the generation of fuel or the nuclear fuel cycle.
The bank seeks investments in companies that demonstrate a strong commitment to environmental responsibility. They measure this through:
– evidence of superior environmental management and reporting systems,
– minimization/elimination of the use and release of pollutants, toxins, or hazardous substances,
– evidence of extensive recycling or use recycled materials as raw materials,
– significant portion of revenue derived from remediation products, environmental services, or products that promote the efficient use of energy.
Instead of eliminating large numbers of potential clients, business partners, and investments because of environmental concerns, the best of sector model provides an incentive for companies to improve their performance.
FROM
Business Ethics
Loading...