The Guardian reports that ethical rules at the Co-op Bank have cost the company millions, with deals involving oppressive regimes, arms and seal skin sporrans being rejected in 2007.
The Co-op’s strict rules on human rights and environmental issues have led to a record number of accounts being closed or turned away.
The Bank believes that the rise in account rejections is proportionate to its growth as a corporate lender as more companies look to them for finance. A spokesman says that the ethical policies were adopted in 1992, and as business has grown “We are getting more requests to finance deals and it is these requests that are falling foul of our ethical policy.”
Business turned away in 2007 includes Cosmetic manufacturers who use animal testing, companies selling real fur products and businesses considered to damage the environment.
Corporate banking profits rose from £49.3million to £55.1miliion during the year.
Hats off to the Co-op for putting their money where their mouth is.
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