Coop Bank

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CSR - THE BIG PICTURE Kate DaleyCommunity
Campaigns Manager

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CSR the BIG picture?
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CSR a small slice of The Big Picture

• Introduction Co-operative heritage CSR
• The Bank and our credentials
• Ethical Policies
• Ethical Purchasing
• Partnership working reporting
• Ethics in action
• Products, services more
• Any questions?

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The Co-operative Group

• Largest consumer co-operative in the UK
• Family of 12 businesses including The
  Co-operative Bank Co-operative Insurance
  Society (CFS)
• 3,500 outlets
• 68,000 staff
• 12 million customers
• 2 million members
• Revenues of over 7 billion in 05
• Share the same set of Co-operative values
  principles

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The Rochdale Pioneers
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Co-operative Values Principles

• PRINCIPLES
• Voluntary open membership
• Democratic member control
• Member economic participation
• Autonomy and independence
• Education, training and information
• Co-operation among co-operatives
• Concern for community

• VALUES
• Self-help
• Self responsibility
• Democracy
• Equality
• Equity
• Solidarity

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The Co-operative Bank
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The Co-operative Bank

• Born in 1872
• Plc wholly owned by Co-operative Group
• Full service clearing bank (1971)
• National, network of 100 branches
• Shared ATM network
• Award-winning telephone internet banking
• First UK bank to offer free current (checking)
  account
• First to launch internet Bank (smile)
• 1-4 market share

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CSR Credentials

• UK MPs rated the Bank 1st when naming -
  companies who best demonstrate the principles
  of Corporate Social Responsibility (BPRI)
• UK general public ranked the Bank 1st, by some
  way, as - a financial provider who takes
  ethical and environmental issues into account
  (NOP)
• Presswatch rated the Bank 1st for - positive
  press coverage/media comment relating to
  Corporate Social Reputation.

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CSR Credentials
Most Corporate Responsible Business in the UK
Ranked 1, BiTC CSR Index, 2006

Worlds best sustainability reportUnited
Nations Environmental Programme
Queens Award for Enterprise for Sustainable
Development 2002
Corporate Conscience AwardsSpecial Judges Award
for Overall Corporate Social Responsibility
Performance, 2002
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Reputation

• To disregard what the world thinks of us is
• not only arrogant but utterly shameless.
• Cicero

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Remember the 90s?
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Background to our Ethical Policy

• THE 1990s
• Companies begin to examine their impact on
  society and environment
• Growth of environmental and ethical pressure
  groups
• Growth in consumer activism
• 10 customers state they join our bank for
  ethical reasons

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Consumer Boycott
BOERCLAYS
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Declining trust in companies
Proportion who agree and disagree that most
companies in the UK are fair to consumers
Source 'Changing Lives', nVision/Taylor Nelson
Sofres Base 1000-2000 adults16
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Industry Reputation
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The way we were
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Background to our Ethical Policy

• THE 1990s
• Companies begin to examine their impact on
  society and environment
• Growth of environmental and ethical pressure
  groups
• Growth in consumer activism
• 10 customers state they join our bank for
  ethical reasons

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• Associate with men of good quality if you
• esteem your own reputation, for it is better to
• be alone than in bad company
• George Washington

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Ethical Policy

• Policy covers
• Human rights
• The arms trade
• Corporate responsibility and global trade
• Genetic modification
• Ecological impact
• Animal welfare
• Social enterprise
• Customer consultation

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Ethical Policy

• The Arms Trade
• We will not invest in any business involved in
•    The manufacture or transfer of armaments to
  oppressive regimes
•     The manufacture of torture equipment or
  other equipment that is used in the violation
  of human rights
• Supported by 98 of customers

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Ethical Policy

• We will not invest in any business whose core
  activity contributes to global climate change
  through the extraction or production of fossil
  fuels

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Ethical Declines 2003
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Ethical Policy

• Social Enterprise
• We will seek to support charities and the broad
  range of organisations involved in the social
  enterprise sector, including
• Co-operatives
• Credit unions
• Community finance initiatives
• Supported by 95 of customers

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Cost-Benefit Analysis
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Bank Profits
m
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CIS Ethical Engagement Policy
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CIS opposes election of Lee Raymond at Exxon
Mobil, 2005
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Ethical Consumerism
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Ethical Consumerism Index
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Ethical Consumers

• 54 of consumers believed that as a consumer I
  can make a difference to how responsibly a
  company behaves
• 58 said theyd avoided a purchase for ethical
  reasons.
• This years Report proves that ethical
  consumption is here to stayThere have been
  fundamental changes to the way we shop and think
  about what we buy
• John Taylor, nef (new economics foundation)

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• Glass, china and reputation are easily cracked
  and never mended well.
• Benjamin Franklin

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Our Partnership Approach

• CFS seeks to deliver value to its partners -
  customers, staff, suppliers, shareholders, the
  co-operative movement and wider society in an
  ecologically sustainable and socially responsible
  manner.

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Our Partnership Approach
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Sustainability Report

• Launched 1998, worlds first bank to produce an
  independently verified sustainability report
• Comprehensive, warts and all reporting
• Sets clear indicators targets under 3 broad
  headings
• Delivering value eg, profit, customer service,
  staff satisfaction Social responsibility eg
  human rights, animal welfare, community
  investment
• Ecological sustainability eg, climate change,
  recycling, biodiversity

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Delivering Value?

• CUSTOMERS
• Personal - CFS customers are more satisfied with
  service than an average of all providers (in 7 of
  8 product classes, except loans).
• Corporate Business - satisfaction up in most
  categories, particularly satisfaction with
  service.
• But complaints up yr-on-yr in the areas of Bank
  corporate, Bank personal and CIS regulated (but
  down for CIS non-regulated).
• SUPPLIERS - extremely high levels of
  satisfaction more than 90 satisfied with
  relationship and key priority of prompt
  payment.
• STAFF - staff survey found significant falls in
  satisfaction in a number of areas Pay (34),
  Career opportunities (26) and Job Security
  (35). Hardly surprising given announcement of
  2,500 job losses at CIS in 04.

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Loyalty

• On average, US corporations now lose half
  their customers in five years, half their
  employees in four, and half their investors in
  less than one year
• We seem to face a future in which the only
  business relationship will be opportunistic
  transactions between virtual strangers.
• Frederick Reichland The Loyalty Effect

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Ethics in Action to Drive Loyalty
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Customer Loyalty

• I am writing to register my support for your
  campaign workI changed my banking to the Co-op
  over a year ago and once again Im glad I made
  the move
•   we are constantly bombarded by offers of
  credit cards that offer huge incentives to
  transfer our business, but few can live up to the
  ethics of The Co-operative Bank, which I admire.
  Thank you.
• I think its wonderful you are doing this
  campaign - it makes me proud to be a member of
  the Co-op and The Co-operative Bank - thank you.
• Your campaign for Trade Justice is a
  FANTASTIC thing and part of the reason I chose
  to bank with you.
• Keep up this very positive work youre a
  leader amongst banks.

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Delivering Value - Loyalty

• Compared with the average customer, the typical
  Customers Who Care voter is
• More Loyal with a longer standing relationship
  
• Lower risk
• More active
• More likely to hold more bank products - over
  half hold 3 accounts, and 50 hold checking
  Visa accounts
• Also, according to MORI Research Ethically
  motivated customers are stronger advocates
  for the Bank and more likely to recommend.

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Combating Climate Change

• Bank campaigning in partnership with Friends of
  the Earth in 05
• Backing Big Ask in support of legally binding
  targets for reduction in CO2 emissions
• Raising awareness with customers, members and the
  general public

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New Ethical Products
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Good with Money
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Green Mortgages
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CFS Green Mortgages

• Pakistan household energy efficiency scheme
  benefiting 17,000 people

• India biogas digesters installed in 80
  households, improving both peoples health and the
  environment

• Madagascar fuel efficient stoves benefiting
  50,000 people

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Green Energy Buying

• Wind turbines purpose-built on back of eight-year
  power purchase agreement
• Meeting a quarter of CFS demand (9GWh)

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Generating Green Energy

• CIS SOLAR TOWER
• The largest vertical solar array in Europe
• 7,244 photovoltaic panels
• Generates 180,000 units of renewable
  energy each year

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Generating Green Energy
UKs largest micro-wind project on our
offices in Manchester.
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Final small slice of CSR The Big Picture

• Corporate Social Responsibility is as relevant
  todayas it was in 1844
• It offers an opportunity to stand out from the
  competition
• A balanced and integrated approach to CSR can
  deliver real value economically, socially and
  environmentally.
• Ethical consumerism is now mainstream not niche
  presenting either a threat or a real opportunity
• Co-operatives and those with genuine CSR agendas
  are ideally placed to seize these opportunities.
  

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• CSR - THE BIG PICTURE
• Any Questions?

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CSR - THE BIG PICTURE Thank you Kate
DaleyCommunity Campaigns Manager

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CSR a small slice of The Big Picture

• For more information and to download reports on
• The Co-operative Bank www.co-operativebank.co.u
  k
• or www.cfs.co.uk/sustainability2004/accessib
  lereporting
• Co-operative Insurance Society www.cis.co.uk
• The Co-operative Group www.co-operative.co.uk