Banks and Ethics

I came across this news article about the Co-op in an online title called City AM which I'd never heard of before.

Anyway I can't say I'm surprised about the moves within the Co-op to cut its ties with the Labour Party - as a customer of the Co-op if I want to give some of my hard earned cash to Labour, I'll do so myself thank you very much.

I don't need the banking to be making such decisions on my behalf, as if I'm incapable of walking and chewing gum at the same time.

If you ask me, the Co-op along with all the other banking groups should keep its nose out of party politics and if it's not prepared to do so, then I will certainly be taking my business elsewhere. 

Co-op considers cutting its ties to Labour Party


by Tim Wallace

THE CO-OPERATIVE Group is considering cutting its historic ties with the Labour Party as it looks to reform its structure in the wake of the Paul Flowers scandal.

The retail and banking group’s reputation has taken a series of devastating blows after its banking arm nearly collapsed in the summer, and allegations of drug abuse emerged against the bank’s chairman at the time.

As a result of the woes it lost its 100 per cent ownership of the lender.

The group is now beginning the process of trying to win back customer trust by asking members and shoppers what they think of its core purpose.

A major survey will cover topics from what customers think of the goods and services on offer at the group, through to how the profits are shared and what the firm should stand for.

The study will extend to more philosophical questions, including the customers’ views of the role of big businesses in society and how firms they can be a force for good.

And it will enter the political sphere, asking members if they still want to give money to Labour.

“In recent years the Co-operative has lost touch with its customers and members and with the communities in which it operates – we haven’t been listening,” said chief executive Euan Sutherland.

“We have seen incredible loyalty from our customers, colleagues and members in recent months – now we want to reward that loyalty.”

However, business analysts said the survey will not help.

“If it is interested in rebuilding participation, the Co-op Group needs address the growing gap between senior management and the membership base,” said Andre Spicer from Cass Business School.

“A frequent complaint among Co-op members is that the group is too large, too centralised, and too dominated by a cadre of professional managers.”

“This survey will not re-engage jilted members. What they want is opportunities to engage in discussion and participate.”

Banks and Politics (18 December 2013)

I have still to receive a response to my recent letter to the Co-op Bank regarding the use of customer funds to get down and dirty - in the nasty old world of party politics.

So, I've fired off a reminder, a chase-up letter, which is not a good sign.

Because in my experience an organisation that fails to respond to its customers quickly and effectively - is an organisation that's in trouble, although we knew that already.   


Dear Co-op Bank

The Co-op Bank and Party Politics

I refer to my letter dated 25 November 2013.

Can you please confirm that you have forwarded this on to the CEO, Niall Booker, as I requested?

I am very disappointed not to have received a response from the Co-op Bank in relation to the points I raised about the bank's involvement in party politics and if I don't receive a proper response to these issues soon, I will do my best to raise my concerns more widely including with the Bank's customers, investors and new owners.  

Kind regards

Mark Irvine

Co-op Bank (10 December 2013)

I said the other day that I would write a letter of complaint to the Co-op Bank over its financial support for the Labour Party - so here's a copy of the letter I sent by email to the Co-op Bank's chief executive, Niall Booker, the other day.

To my mind, banks should stay out of party politics - all banks not just the Co-op.

If individuals want to give their own money to the Labour Party or some other party, then that's up to them - and that's how it should be with the trade unions as well, if you ask me.    

Niall Booker

Chief Executive

Co-op Bank

Dear Niall

The Co-op and Party Politics

I am a customer (saver) with the Co-op Bank to which my account was transferred from the now defunct Britannia Building Society.

I am sure you have your hands full at the moment with the fall-out from this terrible Reverend Flowers business, but I would like to let you know how much I resent and disapprove of the Co-op Bank getting so heavily involved in party politics.

To my mind, it is completely wrong for the Co-op Bank to be giving 'soft loans' or financial donations to the Labour Party such as the £50,000 handed over recently to the office of Ed Balls MP, Labour's shadow chancellor. The money involved belongs to the Co-op's customers and, in my view, it is quite outrageous for the company's funds to be used in this way. 

I imagine the appointment of the Reverend Paul Flowers as Chairman of the Co-op Bank had something to do with his party political connections to the Labour Party and clearly this gentleman's out-of-control, hypocritical behaviour is doing considerable damage to the Co-op's public image.

So, I hope you will see the importance of putting your customers first and putting an end to these party political shenanigans, otherwise I will be taking my business elsewhere.

I look forward to your reply.

Kind regards

Mark Irvine