Chaotic misplaced whining of pampered yet unemployable middle class youth or justified expression of outrage in a political system which has for a long time favored its corporate citizens over those made from flesh and blood; no matter your thoughts about Occupy Wall Street and whether it will accomplish anything, it is clear the now weeks-long protest demonstrates exasperation on the part of SOME of the US and (as evidenced by solidarity movements worldwide) global population with the perceived influence which banking institutions have over government. Away from masses huddled in Zucotti Park, it's generally acknowledged the financial services sector has a reputation problem. In a recent Harris Poll, banks ranked just ahead of airlines amongst Americans asked whether a business is 'doing a great job'.

Occupy Austin

So who cares? Why must banks worry the way they are believed to be through the average American? They are especially valid questions if your majority of your lending is to large corporate clients and institutions instead of Mom and Pop small business loans or mortgages. Even if individual consumers detest banks (and should not distinguish investment banks from other areas of the financial services sector), they too need use of credit and other financial services to work.

To have an industry and individual companies there to survive and flourish, the markets and societies by which they operate have to approve, or at best condone, their activities. When this 'social license' is restricted or revoked, the industry becomes less profitable and much more hard to operate or survive within. As an example, I encourage you to look at Altria, Phillip Morris, to illustrate a business that had to substantially rethink its business model and incredibly identity since it's social license to operate grew more restricted in recent decades.

There is already substantial frustration in the United States with banks, their fee structures, as well as their perceived influence within the authorities. Movements for example Occupy Wall Street only add more oomph towards the reputational headwinds blowing from the financial services sector. Should these winds grow sufficiently strong, they may eventually sway regulators to rethink policies and lead to outcomes which are unfavorable towards the banking industry.

Occupy Toronto

Where does sustainability are available in? Essentially, it's an element of good corporate citizenship that, coupled with other behaviors, helps to maintain and enhance an industry's social license to operate. We've often had clients remark that regulators on sides from the political will ask them regarding their green lending activities in meetings or interviews that aren't specifically tied to energy or other environmentally-intensive subjects. We've also seen this within our direct knowledge about public sectors leaders, in the united states and in Asia. Regardless of party ideology or agenda, no leader really wants to be seen directly as anti-environment (remember that BP now considers itself Beyond Petroleum and not even Sarah Palin really wants to completely disband the united states EPA).

In short, dedication and demonstrable contribution toward a far more sustainable future might help banks and other organizations to cultivate a more favorable environment in which to operate. There are other important elements to consider (you cannot charge usurious fees, for example), but creating a better future certainly helps to maintain the social license to use; a license which Occupy Wall Street reminds us is necessary.

Chaotic misplaced whining of pampered yet unemployable middle-class youth or justified expression of outrage in a political system that has for years favored its corporate citizens over those made of flesh and blood; regardless of your views on Occupy Wall Street and whether it will accomplish anything, it's clear the now weeks-long protest demonstrates exasperation for A few of the US and (as evidenced by solidarity movements worldwide) global population using the perceived influence which financial institutions have over government. Outside the masses huddled in Zucotti Park, it's generally acknowledged that the financial services sector includes a reputation problem. Inside a recent Harris Poll, banks ranked just ahead of airlines amongst Americans asked whether a business is 'doing a great job'.

Occupy Austin

So who cares? Why must banks worry how they are viewed through the average American? They are especially valid questions if a most of your lending is to large corporate clients and institutions instead of Mom and Pop small business loans or mortgages. Even if individual consumers detest banks (and should not distinguish investment banks from other areas of the financial services sector), everybody need use of credit along with other financial services to function.

To have an industry and individual companies there to survive and flourish, the markets and societies by which they operate have to approve, or at least condone, their activities. If this 'social license' is fixed or revoked, the becomes less profitable and much more difficult to operate or survive within. As an example, I encourage you to take a look at Altria, Phillip Morris, to illustrate a company that had to substantially rethink its business model and incredibly identity since it's social license to use grew more restricted in recent decades.

There's already substantial frustration in the usa with banks, their fee structures, and their perceived influence within the authorities. Movements such as Occupy Wall Street only add more oomph towards the reputational headwinds blowing from the financial services sector. Should these winds grow sufficiently strong, they might eventually sway regulators to rethink policies and lead to outcomes that are unfavorable towards the banking industry.

Occupy Los Angeles

Where does sustainability come in? Essentially, it's an component of good corporate citizenship that, coupled with other behaviors, helps you to maintain and enhance an industry's social license to use. We've often had clients remark that regulators on sides of the political asks them regarding their green lending activities in meetings or interviews that are not specifically tied to energy or other environmentally-intensive subjects. We've also seen this in our direct experience with public sectors leaders, in the US as well as in Asia. Regardless of party ideology or agenda, no leader really wants to be viewed directly as anti-environment (keep in mind that BP now considers itself Beyond Petroleum and never even Sarah Palin really wants to completely disband the united states EPA).

In a nutshell, a commitment and demonstrable contribution toward a more sustainable future can help banks and other organizations to cultivate a more favorable environment to operate. There are more important elements to consider (you can't charge usurious fees, for example), but creating a better future certainly helps to maintain the social license to operate; a license which Occupy Wall Street reminds us is necessary.