Banks became “detached from society” and still need to reconnect with their customers, the chief executive of Royal Bank of Scotland has admitted.
In an interview with the BBC’s Today programme, Stephen Hester said the industry was “coming down to earth with a bump” following recent scandals.
“The converging problems of climate change, growing population and limited resources, which are unevenly distributed, require a change of approach. Capitalism as currently practised exacerbates these problems.”
The corporate world needs to include social responsibility in its policies. Neo-Con capitalism favours consumption and competition, whilst denying and avoiding any responsibility for consequent hardships.
“Money as a token of exchange is fine, but when it functions as a lever of unregulated power it becomes corrupted. Other values that cannot be measured are dismissed – truth, fairness, empathy, aesthetics, ethics.
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The corruptions are subtle and pervasive; honesty, for instance, becomes that which is not illegal, and examples of this excuse for unfairness are legion (MPs expenses, tax avoidance, disproportionate remuneration).
“If we continue as we are the gap between rich and poor will eventually produce two very diverse societies. The potential exists in that situation for massive social disturbance. It is not often that I quote at this length, but all this seems so relevant to my blog.
The system is unable to contemplate the abyss and modify their political beliefs, before some bright spark found a convenient scapegoat that allowed them to hold onto their convictions and pursue their illusions. Economists, bankers, politicians and presenters are all in denial of the crisis facing us all.
And in the meantime and according to a recent report: a global super-rich elite had at least $21 trillion (£13tn) hidden in secret tax havens by the end of 2010, according to a major study. Time for realists and progressive people to take control for all our sakes and for our future. And it is now half a decade since the crisis started, which some of us predicted.
Ivor Timson 