How financial services can regain trust, football clubs and sustainability and stakeholder engagement in Colombia’s biggest mine
Scotland has a mixed history when it comes to financial services. The home of the 18th century enlightenment and the birthplace of Adam Smith has, more recently, been more closely associated with the rise and then dramatic fall of Scottish icons Royal Bank of Scotland and the Bank of Scotland in the 2008 financial crisis. The behaviour of the leaders of these now largely government-owned institutions came, in the UK at least, to epitomise all that had gone wrong in the banking sector.
In the past five years of restructuring and soul-searching, though, has there been a shift back towards a more enlightened and ethical view of what banks and other financial services providers are for?
There are signs that this might be the case, as we report this month. Royal Bank of Scotland has cleaned up its act to the extent that it has been reselected for inclusion on the Dow Jones Sustainability Index and FTSE4Good. The development of micro lending, social impact bonds and a proposed ethical finance hub – that would bring together credit unions and asset managers, along with alternative financing such as Islamic banking – all demonstrate a willingness to develop new techniques that hark back to an older ethos of integrity. It’s unclear how a vote for full independence from the UK in 2014’s referendum would affect Scotland’s financial services sector, but there certainly appears to be a determination to build-in ethics, whatever happens.
Elsewhere, we have the second in our two-part investigation into football, this time examining clubs and the domestic game. Undoubtedly, and most especially in the English premiership, there is a general sense that rich owners will bankroll clubs to the extent necessary that ensures success on the pitch, with good business management some way down the list of priorities. Different ownership structures in Germany, Sweden and elsewhere tend to promote closer ties between clubs and their communities – which is not, of course, mutually exclusive with success on the pitch.
European governing body Uefa’s financial fair play rules mean that all football clubs now have to at least break even over a three-year period up to the end of the 2013/14 season. So in the coming months the success of the rules in persuading the big clubs to develop financial stability will become apparent.
Ethical Corporation was in Colombia recently and we have an in depth case study on Cerrejón, one of the world’s largest coal mines. The extractive sector has long struggled to get to grips with myriad human rights issues, particularly regarding indigenous peoples. Cerrejón is no exception, but has now put in place some progressive measures that should promote more transparency and fairness in challenging circumstances. It’s an interesting story, that others could learn from.
Also this issue we have reviews of the latest reporting from Hess and Diageo, roundups of sustainable business news and where campaigning NGOs are directing their attention, and all the usual analysis and debate from our columnists.
As always, please don’t hesitate to get in touch with any comments or feedback.
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