‘For what will it profit them to gain the whole world and
forfeit their life?’ (Mark 8:36). We have a similar remark in Matthew’s gospel (16:26): ‘For what will it profit a man if he gains
the whole world and forfeits his soul?’ Jesus’ words to us are stark indeed.
In Lent we can discover our true selves in prayer and contemplation of our
relationship with our Maker.
Given the current debate on business ethics and the reputation
of bankers in general, I found it somewhat counter-intuitive to come across a
text from late last year in which the author argued that young people with ethical values should choose to enter the career of investment banking.
‘We are calling on
people to be like Robin Hood, but by earning the money rather than stealing
it’, the argument goes. The claim
is that when looking at careers choices, young people are missing the point if
they see banking as a less ethical option. Instead, it is argued, that someone
becoming an investment banker could create sufficient wealth to make
philanthropic donations that could make a bigger difference than someone
choosing to work in a more ‘morally acceptable’ career such as for an aid
charity. ‘The direct benefit a single aid worker can produce is limited,
whereas the philanthropic banker’s donations might indirectly help 10 times as
many people.’ If we compare typical incomes in investment banking with the cost
of treating tuberculosis in the developing world, it is claimed that an
ethically inclined banker who donated half his income could save 10,000 lives.
All well
and good if it were to happen. We know that it does happen sometimes and can be
very impressive. The total grant commitments of the Bill and Melinda Gates Foundation since
inception in 1994 are $26.19 billion while the total 2010 grant
payments were $2.6 billion. But we know that for every Bill
Gates with his burning commitment to healthcare issues in the underdeveloped
world, there are many investment bankers and other chief executives of
companies who make paltry donations or none at all.
The Church Investors Group (CIG) is a group of investors
connected with the Churches of Britain and Ireland with combined assets of c.£12.6 billion. In 2010 it commissioned a report on the Ethics of Executive Remuneration which deserves to be better known.
It highlighted four ethical principles: concern for the poor; just pay; the
dangers of wealth and the principle of good stewardship. It made seven
recommendations. Investors should be most concerned about pay for the poor. Pay
differentials are more important than absolute pay packages, and here the gap
between the lowest and the highest paid must be set to narrow over time.
Investors need to hold executives to account over performance. Investors should
seek to prevent competitive pay policies between one company and another. They
should dissuade companies from offering pay packages which encourage high risk
behaviour. There should be transparency in pay packages in order to encourage
accountability. Disinvestment should be considered in a case in which the
policy of the company concerned is at variance with these recommendations.
The report is
positive, and the acceptance of its value system would make a valuable
difference. But ultimately the ethical principles of each person in the company
or bank who has significant responsibilities is what matters. As the report
argues, ‘attracting candidates with high levels of pay means they are
disproportionately likely to put their own financial interests ahead of those
of the company and its shareholders’. The ethos of the bank or the company has
to become an ethical one overall, so that an individual who acts against the general
ethical approach is spotted early on for being a ‘rogue trader’ in a different
sense from the one this term is normally given.
There should be bankers and chief executives with uneasy consciences
given the widespread misery the bailout of the banks has caused our society at
large. It has been, and will continue to be, the less well to do in society who
suffer the consequences disproportionately. The Church of England website has a prayer for those being made redundant. A small light was cast on the general
gloom this week by a circular entitled ‘Trusting in God in the absence of work’. The three or four young people interviewed there on how their faith has
helped them, or is continuing to help them, in their difficulties is truly
inspirational. May God grant them, and all people in economic difficulties
through no fault of their own, that comfort and hope when the future seems to
offer none.
Note: at the 10.30 service, the congregation committed itself to uphold the Fairtrade Foundation Covenant.
