One of Canada’s leading banks says it will implement a wide ranging ethical policy by the end of next year.
Citizens Bank, which claims to be the first such financial institution in Canada to take a stand on ethical issues, says it will comply with all aspects of its new ethical code before the end of next year.
The code, which sets out policy on human rights, employee relations, military weapons, the environment, treatment of animals, sustainable energy, tobacco and business conduct, aims to carve out a Canadian niche for Citizens Bank in much the same way as the Co-operative Bank has done with its ethical stance in the UK.
Senior executives acted to introduce it after a survey of customers showed 74 per cent thought the bank should have an ethical policy.
Chief executive Linda Crompton, who claimed the code would help set ‘a new standard of corporate accountability in Canada’, said consumers had previously focused most of their attention on the social and environmental behaviour of North American forestry and mining industries, but that ‘over the last year they have also spoken out about their banks’.
The policy, which was devised after consultations with staff, customers and NGOs, will be reviewed every two years. It says the bank will ‘work for positive social change’ and will not invest in, or do business with, companies that:
profit from forced labour
operate in countries with ‘oppressive regimes’
violate the ‘fundamental rights of children’
have a ‘poor record of employee relations’
manufacture or trade in weapons
produce nuclear energy
A major independent audit at the end of 2000 will establish whether the bank, which is owned by VanCity Savings Credit Union, the largest credit union in Canada, has managed to live up to its promise.
Head office has already begun to implement some aspects of the policy by screening all new business relationships, and will measure initial progress with an interim audit in April 2000.