Presentation on theme: "Accountability of FI Banks CAN exert power through their lending decisions Banks often limit themselves to credit checks. Do Financial Institutions."— Presentation transcript:
Accountability of FI Banks CAN exert power through their lending decisions Banks often limit themselves to credit checks. Do Financial Institutions have to engage in “ethical” checks ? There is a grey zone. We posit : business with clearly unethical practices should not be funded.
Hardline approach ? Is a hardline approach at this point devoid of moral worth ? APP has become a prisoner of its industry structure. Bank’s support implies responsibility to help at this point. Refusal can be considered immoral.
Vs. A Perfect Market FIRM: focus on profits and value PUBLIC: sorts out ethics Laws Value
Vs. The Firm The individual Short term value The Environment The community Long term sustainability Vs.
Environmental Issues Environmental issues are to be treated seriously. Dilemma : Individual versus Community Interest in creating goodwill demonstrated by commitment to environment.
Measures to discourage misconduct Align incentives and rewards with environmentally-sustainable activities Anonymous reporting of breaches Duty to report Codes of conduct