Image by World Economic Forum via FlickrWe have entered into another bankers bonus season again the face of the fat, greedy banker lining his pockets with the earnings of usury drives most bank customers with a since of outrage. Since the financial crisis banks in terms of public trust are now third from bottom just above the media and insurance companies. As the custodians of our money we require banks to produce as much profit for our savings and pensions, few of us rarely questioned how these financial gains were accrued prior to the recent financial crisis. Our current paradigm of the pursuit of profit and expressions of wealth... bigger cars and even bigger houses placing demands on bankers to service our desires. The profit ethos is not congruent with sustainable principles, therefore when we observe bankers requesting the payment of £2 million bonuses they are only demanding their due as stipulated by employment contractual arrangements - financial engineering has more market value than real engineering. Prime Minister David Cameron's call for bonus restraint may do little to solve the problem in a scenario where society and bankers value short term profit taking approaches on investment decisions. Sustainability requires us to incorporate the needs of future generations in investment decision making, such a concept defers instant gratification i.e. profit taking if it is not in societies best interest. Its been part of the UK Pensions Act that environmental, social issues are reviewed as part of good governance. The issue is that the governors need to be governed probably by CSR Regulations as in France. The fear of "micro managing banks" is a legacy of the Friedman disease. Our options as a society are to encourage our bankers to pursue good governance in society's best interest i.e. fund sustainable development or we become governed by market forces i.e. a return to the summer of 2008 - a future bank bailout on an even unimaginable scale....
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