Co-Op Bank's Ethics Cost It Pounds 10m-Worth of Business; but the Same Principles Also Boost Profits
Byline: BY KAREN ATTWOOD Daily Post Correspondent
THE Co-operative Bank turned away a record pounds 10m-worth of business for ethical reasons last year, according to an analysis of its profitability.
The value of the business lost to the bank due to ethical and ecological reasons was worth pounds 9.9m at the end of 2005, compared with pounds 8.7m the previous year.
However, the analysis also reveals that 34% of the bank's pounds 96.5m pre-tax profit last year is directly attributable to its ethical and sustainability policies.
Environmental concerns cost the Co-op the most. More than 50% (pounds 5.3m) of the value declined was for activity that conflicted with its ecological policies, and 25% of the total (pounds 2.4m) related directly to the bank's concerns around global climate change.
The cost of turning away business for animal welfare reasons was pounds 1.9m, declining to do business associated with poor human rights and labour practices also lost it pounds 1.9m, while rebuffing organisations involved in the production of problematic chemicals cost pounds 900,000.
Craig Shannon, director of business management, said the analysis demonstrates that the Co-op is prepared to turn away business for ethical reasons in line with customers' concerns. …