TRIODOS - THE TRANSPARENT BANK

Lecture by Charles Middleton, Managing Director of Triodos Bank UK

Banks and their bankers are not very popular at the moment but how many of us have put our money where our mouth is and moved our savings to an ethical bank? The financial crisis has, at great cost to us all, underlined the need to ward against untrammelled pursuit of profit. Charles Middleton, Managing Director of Triodos Bank UK, recently gave a lecture at Warwick Business School entitled 'Debating Corporate Resonsbility: Visions, Values, Value Added' looking at the future of ethical banking.

Listen now to a recording of the lecture and watch the slides:

"Does anybody want to be a banker anymore? Only one person put up their hand when Charles Middleton, Managing Director of Triodos Bank UK, asked the question at a recent WBS lecture entitled 'Debating Corporate Responsibility: Visions, Values, and Value Added'.

Obviously people still do as it remains an incredibly lucrative profession, although the intense media scrutiny deems it to be an unethical one. As Charles Middleton explains, this has affected the sustainable banking sector in different ways across Europe: “We saw massive inflows in Holland and Belgium where there has been a much more emotional reaction to the banking crisis. People there were furious with their banks and decided to take their money to Triodos. We do have a higher profile in Holland, which makes that easier to do, but we did not see the same effect in the UK.”

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Triodos is a sustainable bank that lends money exclusively to organisations and businesses that are looking to solve the world’s most difficult environmental problems, while still turning a profit. For many, corporate social responsibility has been seen as a useful PR device but nothing more. At Triodos however, it is central to the way the bank operates: “We have real customers on both sides of the balance sheet. We have an open book policy, we are completely transparent about who we are lending money to. We invite our customers to come and spend a day with us once a year- they really take us to task as they are often seriously engaged individuals.” The idea is that having an account with Triodos gives people some control over how their money is used - there are even specific accounts that allow customers to support organic initiatives, for example.

Ethical businesses are not a new innovation - Mr Middleton highlights that Barclays was founded by Quakers, and Cadbury’s has a similar heritage: “Triodos was started by the Dutch; they wanted a bank that was social at its core, driven by the idea that there was a better way of handling money.” The philosophy of Rudolf Steiner, an Austrian social thinker, continues to be influential; all the staff across Europe recite a Steiner verse at their Monday morning meeting.

There is always a tension, however, between maintaining profit and growth while retaining focus on the values central to the organisation. This tension exists not only for Triodos but also the businesses they lend to - sometimes businesses end up banking elsewhere when development means they become a different type of organisation, one that Triodos customers are not interested in supporting.

If you would like to continue the debate why not comment below or visit WBS's new NetImpact site which aims to 'inspire, educate and equip individuals to use the power of business to create a more socially and environmentally sustainable world.'

By Amy McLeod