Want to know what citizenship means?

Don’t ask Bob Diamond, ask consumers…

Barclays cynical appropriation of the ‘citizenship’ agenda proves that the shift towards responsible capitalism will not come from the boardroom.  But neither should we look to shareholders or politicians to bring about meaningful change.  It is a new breed of consumer and the SME’s that serve them who are drawing up the battle lines in the struggle to find a better way of doing business.

Today Barclays is holding a ‘citizenship day’ to underline the banks commitment to being a good citizen. Bob Diamond even made citizenship one of the banks ‘execution priorities’ when he took over as chief executive, but what do they actually mean by citizenship?

Unsurprisingly the ‘what does citizenship mean to us’ section of their annual report is pretty vague. But the long and short of it is that Barclays subscribes to a very traditional conception of Corporate Social Responsibility.

"Our role is to help improve the lives of our customers. We must provide mortgages, allow businesses to invest and create jobs, protect savings, pay tax, be a good neighbour in the community while also generating positive economic returns for our investors."

Bob Diamond, Chief Executive, Barclays Bank

In other words, they believe, that as a bank, fulfilling their core business activities, hiring some staff, paying some tax, providing a few grants to community organisations and running the odd volunteer day makes them a good citizen.

There is a longstanding debate about the merits of CSR.  But the zeitgeist is shifting away from CSR towards the idea of socially responsible business. Increasingly we expect companies to not just ‘give a bit back’ but to internalise the claims of society and the environment by embedding values in governance structures, supply chains, HR and operations.   Socially responsible business breaks down the distinction between business, and social and environmental aims.

 Indeed, Barclays has attempted to tap into this value shift by emphasising how its lending activities stimulate ‘growth’. But surely making loans is just what banks do?  The same goes for conducting environmental impact assessments, treating customers fairly, or most the activities Barclays are celebrating today.  It’s hard to avoid the conclusion that Barclay’s newfound enthusiasm for citizenship is nothing more than a cynical PR push.

Clearly its not boardrooms who are going to be the driving force creating a more responsible capitalism.  But who will?

Much has been made in the media of "shareholder spring".  The though is that newly reinvigorated and emboldened shareholders will act as a restraint on corporate excess and encourage large corporations to act more responsibly.

But shareholders main interest is maximising their returns.  The current spate of shareholder revolts basically boil down to the complaint that senior staff in large corporations, and in particular in financial institutions like Barclays, have been creaming off too much of the revenues in pay and bonuses and not paying enough in dividends to shareholders. 

Although shareholder activism may succeed in ensuring a fairer deal for owners by tying executive remuneration closer to return on equity, the reality is that shareholders have no incentive to fundamentally change the way big business operates. If we want to see meaningful change in the way big PLCs, and in particular big banks, behave we cannot rely on shareholders alone.

Politicians of all stripes have also been fumbling towards a notion of ‘responsible capitalism’  in the attempt to show an electorate ground down by a stagnating economy and austerity cuts that they are not merely puppets in the grand farce of the financial markets.  Ed Milliband tried to distinguish between producers and predators whilst Cameron waxed lyrical about the ‘John Lewis economy’ but both notions remains nebulous and lack credibility.

Articulating a vision for a responsible form of capitalism is an almost impossible task for our political elite who has spent the last 20 years purging themselves of any such ideological impulses. Moreover responsible capitalism cannot be defined a-priori by policy makers. It is taking shape and growing on the ground.  The role of politicians is to respond to what’s already out there and create an environment in which best practice can flourish.

It is a new breed of consumers and the SME’s that serve them who are on the frontline of the struggle to build a more responsible form of capitalism.  For consumers, companies offer one choice in a market in which they have to balance a range of competing concerns about the world they live in. 

Consumers are not just concerned the particular product or service they purchase but the quality of the air they breathe when they walk down the street, the size of their grandchild’s future tax bill, how happy the people who serve them are to name a few.  These consumers are relating their consumption choices to wider macro level concerns and so inadvertently breaking down the distinction between being good consumers and being a good citizens.

New business models and vehicles for collaborative consumption, often facilitated by the social power of the internet, are developing to serve the needs of these consumers. They range from highly commercial bulk buying schemes like Groupon, to consumer cooperatives, through to peer-to-peer platforms and movements like move your money which harness consumer power to achieve broader social aims.

Barclays lecturing us on citizenship is more than a bad joke. If they were serious about citizenship and social benefit they should start by properly consulting with the people already making it happen.

The UK has already slipped back into recession and with the looming banking crisis in the Eurozone we have more economic woes in store. We urgently need our banks to be better citizens.  And if you don’t think Bob Diamond is the right person to make that happen then maybe its time to take matters into your own hands and move your money?

Louis Brooke works for Move Your Money UK. Find them on Facebook or Twitter.

Photograph: Getty Images

Louis Brooke is a spokesperson for Move Your Money UK, a not for profit campaign group, promoting alternatives to the big banks. He is also communications manager for London Rebuilding Society, and co-founder and chairman of educational resource company now>press>play.

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David Osland: “Corbyn is actually Labour’s only chance”

The veteran Labour activist on the release of his new pamphlet, How to Select or Reselect Your MP, which lays out the current Labour party rules for reselecting an MP.

Veteran left-wing Labour activist David Osland, a member of the national committee of the Labour Representation Committee and a former news editor of left magazine Tribune, has written a pamphlet intended for Labour members, explaining how the process of selecting Labour MPs works.

Published by Spokesman Books next week (advance copies are available at Nottingham’s Five Leaves bookshop), the short guide, entitled “How to Select or Reselect Your MP”, is entertaining and well-written, and its introduction, which goes into reasoning for selecting a new MP and some strategy, as well as its historical appendix, make it interesting reading even for those who are not members of the Labour party. Although I am a constituency Labour party secretary (writing here in an expressly personal capacity), I am still learning the Party’s complex rulebook; I passed this new guide to a local rules-boffin member, who is an avowed Owen Smith supporter, to evaluate whether its description of procedures is accurate. “It’s actually quite a useful pamphlet,” he said, although he had a few minor quibbles.

Osland, who calls himself a “strong, but not uncritical” Corbyn supporter, carefully admonishes readers not to embark on a campaign of mass deselections, but to get involved and active in their local branches, and to think carefully about Labour’s election fortunes; safe seats might be better candidates for a reselection campaign than Labour marginals. After a weak performance by Owen Smith in last night’s Glasgow debate and a call for Jeremy Corbyn to toughen up against opponents by ex Norwich MP Ian Gibson, an old ally, this pamphlet – named after a 1981 work by ex-Tribune editor Chris Mullin, who would later go on to be a junior minister under Blai – seems incredibly timely.

I spoke to Osland on the telephone yesterday.

Why did you decide to put this pamphlet together now?

I think it’s certainly an idea that’s circulating in the Labour left, after the experience with Corbyn as leader, and the reaction of the right. It’s a debate that people have hinted at; people like Rhea Wolfson have said that we need to be having a conversation about it, and I’d like to kickstart that conversation here.

For me personally it’s been a lifelong fascination – I was politically formed in the early Eighties, when mandatory reselection was Bennite orthodoxy and I’ve never personally altered my belief in that. I accept that the situation has changed, so what the Labour left is calling for at the moment, so I see this as a sensible contribution to the debate.

I wonder why selection and reselection are such an important focus? One could ask, isn’t it better to meet with sitting MPs and see if one can persuade them?

I’m not calling for the “deselect this person, deselect that person” rhetoric that you sometimes see on Twitter; you shouldn’t deselect an MP purely because they disagree with Corbyn, in a fair-minded way, but it’s fair to ask what are guys who are found to be be beating their wives or crossing picket lines doing sitting as our MPs? Where Labour MPs publicly have threatened to leave the party, as some have been doing, perhaps they don’t value their Labour involvement.

So to you it’s very much not a broad tool, but a tool to be used a specific way, such as when an MP has engaged in misconduct?

I think you do have to take it case by case. It would be silly to deselect the lot, as some people argue.

In terms of bringing the party to the left, or reforming party democracy, what role do you think reselection plays?

It’s a basic matter of accountability, isn’t it? People are standing as Labour candidates – they should have the confidence and backing of their constituency parties.

Do you think what it means to be a Labour member has changed since Corbyn?

Of course the Labour party has changed in the past year, as anyone who was around in the Blair, Brown, Miliband era will tell you. It’s a completely transformed party.

Will there be a strong reaction to the release of this pamphlet from Corbyn’s opponents?

Because the main aim is to set out the rules as they stand, I don’t see how there can be – if you want to use the rules, this is how to go about it. I explicitly spelled out that it’s a level playing field – if your Corbyn supporting MP doesn’t meet the expectations of the constituency party, then she or he is just as subject to a challenge.

What do you think of the new spate of suspensions and exclusions of some people who have just joined the party, and of other people, including Ronnie Draper, the General Secretary of the Bakers’ Union, who have been around for many years?

It’s clear that the Labour party machinery is playing hardball in this election, right from the start, with the freeze date and in the way they set up the registered supporters scheme, with the £25 buy in – they’re doing everything they can to influence this election unfairly. Whether they will succeed is an open question – they will if they can get away with it.

I’ve been seeing comments on social media from people who seem quite disheartened on the Corbyn side, who feel that there’s a chance that Smith might win through a war of attrition.

Looks like a Corbyn win to me, but the gerrymandering is so extensive that a Smith win isn’t ruled out.

You’ve been in the party for quite a few years, do you think there are echoes of past events, like the push for Bennite candidates and the takeover from Foot by Kinnock?

I was around last time – it was dirty and nasty at times. Despite the narrative being put out by the Labour right that it was all about Militant bully boys and intimidation by the left, my experience as a young Bennite in Tower Hamlets Labour Party, a very old traditional right wing Labour party, the intimidation was going the other way. It was an ugly time – physical threats, people shaping up to each other at meetings. It was nasty. Its nasty in a different way now, in a social media way. Can you compare the two? Some foul things happened in that time – perhaps worse in terms of physical intimidation – but you didn’t have the social media.

There are people who say the Labour Party is poised for a split – here in Plymouth (where we don’t have a Labour MP), I’m seeing comments from both sides that emphasise that after this leadership election we need to unite to fight the Tories. What do you think will happen?

I really hope a split can be avoided, but we’re a long way down the road towards a split. The sheer extent of the bad blood – the fact that the right have been openly talking about it – a number of newspaper articles about them lining up backing from wealthy donors, operating separately as a parliamentary group, then they pretend that butter wouldn’t melt in their mouths, and that they’re not talking about a split. Of course they are. Can we stop the kamikazes from doing what they’re plotting to do? I don’t know, I hope so.

How would we stop them?

We can’t, can we? If they have the financial backing, if they lose this leadership contest, there’s no doubt that some will try. I’m old enough to remember the launch of the SDP, let’s not rule it out happening again.

We’ve talked mostly about the membership. But is Corbynism a strategy to win elections?

With the new electoral registration rules already introduced, the coming boundary changes, and the loss of Scotland thanks to decades of New Labour neglect, it will be uphill struggle for Labour to win in 2020 or whenever the next election is, under any leadership.

I still think Corbyn is Labour’s best chance. Any form of continuity leadership from the past would see the Midlands and north fall to Ukip in the same way Scotland fell to the SNP. Corbyn is actually Labour’s only chance.

Margaret Corvid is a writer, activist and professional dominatrix living in the south west.