Ethics and Finance: Why the industry is taking the Oath
The Banking and Finance Oath (The BFO) has been a hot topic since Ian Narev, CEO of CBA, was questioned by labor MP Matt Keogh, during a recent senate enquiry, about why he hadn't signed the Oath, to which Narev responded: "The sole reason that I haven't agreed to date is not that I don't agree with the content...my view is that the day I took the job, I signed up for that. So I took a personal decision that it's not something that I would do."
However, many other high level executives in the industry believe that taking the Oath is extremely important, with a few of them sharing their thoughts below with Industry Moves. We also hear from The BFO executive, Cris Parker, who tells us a little bit about what the Oath means, why she got involved and a little extra about herself.
What the Industry has to say about The BFO...
Brad Cooper
CEO, BT Investments
"It's the silent majority who are doing the right thing that allows some of the wrong doings to go on and I think it's just so important that those of us who live by the Oath, let other people know that we do and let other people know that we are prepared to call out inappropriate action."
Phil Chronican
Director NAB and BNZ
"I've spent 35-years in banking and finance and I've always been very proud but the industry has let itself down. I wasn't prepared to let it go. I took The BFO and subsequently joined the Board to encourage people in the industry to take a high ethical stand."
Former CEO, ASFA
"A key motivation for me taking The BFO was to actively broaden conversations from whether a product or service was legal or compliant to whether it was ethical...I was also very attracted to the fact that The BFO provides a support network for those who call out behaviour that breaches ethical norms."
Phil Lowe
Governor, Reserve Bank of Australia
"If you are a signatory to The BFO you are more likely to reread it and for me that was an important consideration, if I took the Oath then I knew I would have the discipline to go back periodically and look at what I had committed to."
Michael Walsh
CEO, UCA Funds
"I took the Oath to make a personal commitment to ethical conduct. It goes hand in hand with good stewardship of other people's money."
Q&A with Cris Parker...
Can you tell us how the Banking and Finance Oath started?
The Banking and Finance Oath is the result of a process that started in 2008.The Ethics Centre established the voluntary role of Consulting Fellow for Ethics in Banking and Finance and through this role, Clare Payne, who at the time was an Associate Director of the Integrity Office of Macquarie, engaged the industry on ethics and found many finance leaders were willing to be involved in an ethics-focused initiative.
An ethics panel was formed by the industry and as a result, The Banking and Finance Oath (The BFO), a Hippocratic-type oath for the banking and finance industry, was formalised as an industry-led initiative in 2010 and supported by The Ethics Centre. The online initiative went live in late 2012. The BFO applies to all sectors of financial services.
What does it mean when a company or individual sign the oath?
The BFO can only be taken by individuals. The final words are "my word is my bond" and draws on the integrity of an individual to commit to a set of principles. Through this commitment an individual is encouraged to apply an ethical framework to their day to day decision making. They are also saying that they are willing to be held accountable for their actions. As more people take the Oath, a network of like-minded people develop and the ability to call out wrong doing or even something which doesn't feel quite right becomes easier as a common ethical standard is shared by all. When a company has every individual committed to The BFO, they are then '100% committed' and this is recognised on The BFO website and can be declared by the organisation on their site.
How many signatures have you got so far and what's your end goal?
We are always asked 'how many signatories are there?' I suppose quantifying comes naturally to those in financial services but as BFO Director and CEO of BTIM Emilio Gonzalez says, it's not about the numbers, it's about the behaviour. Having said that, over 1500 people have taken The BFO and many of those are in leadership roles. In my eyes, taking the Oath shows leadership, no matter what your position.
Has any data been collected around the impact that the oath has had?
To date, the impact The BFO has had, has been captured through stories and testaments. Individual's taking the Oath have also encouraged entire organisations to do the same, making an organisation 100% committed. Changes in culture take time and you want that, the last thing you want is for the Oath to become a token.
Do organisations promote the fact they have taken the oath?
Those organisations where all employees are BFO signatories may add a logo declaring their 100% commitment to The Banking and Finance Oath. Significantly, they are saying individual's values are aligned with those of the organisation. This alignment encourages trust, both from within the organisation but also from external stakeholders as people's behaviour are consistent with the messaging of the organisation.
...and now a little about you Cris.
What sparked your interest in this particular industry?
I started my career in performance and film making, so story telling has always been a passion. After completing a social science degree I applied to The Ethics Centre as a intern and subsequently became an employee. During that time I contributed to a number of social impact projects that still thrive today. Three years ago I was approached to work on The Banking and Finance Oath and was excited about the interest the industry had in ethics and the willingness people had to drive this initiative, which continues to grow.
What's the best piece of advice that you have received?
I suppose it was more of a comment than advice, but someone once told me that we overestimate what we can do in a year and underestimate what we can achieve in a decade. This is important for me, I like things to get done and it keeps the process in perspective.
Who has been the biggest influence in your life so far?
That's easy, my partner.
What's something that most people wouldn't know about you?
I'm a bit of a rev head, with a particular bend toward Formula 1 and I'm a sci-fi geek.
The Oath...
Trust is the foundation of my profession.
I will serve all interests in good faith.
I will compete with honour.
I will pursue my ends with ethical restraint.
I will help create a sustainable future.
I will help create a more just society.
I will speak out against wrongdoing and support others who do the same.
I will accept responsibility for my actions.
In these and all other matters; My word is my bond.
For more information you can visit the Banking and Finance Oath website here.
