In today’s world, it may seem difficult to find organizations that are trustworthy in terms of dealing in financial transactions. With the recent economic downturn – as well as the numerous “bailouts” of large banks and investment companies, consumers are being much more careful these days about entrusting their hard-earned funds. This is especially so with regard to placing their retirement nest egg and other money that will be needed both now and in the future.
Therefore, when searching for a reputable and ethical bank in which to deposit funds, it is more important than ever today to be sure that the institution is on the up-and-up and will treat both you and your money in the best manner possible.
Banking on an Institution’s Code of Ethics
Similar to having a mission statement that incorporates company goals, many banks now also have a written Code of Ethics. These can actually serve as the cornerstone of these entities’ businesses, as they deal with important financial transactions that can literally affect their customers’ everyday lives and future financial well being.
The Code of Ethics that is laid out by banks will typically incorporate the firm’s compliance standards as well as state the values of the organization and the acceptable behavior that can be expected from the bank’s employees.
How Banks Are Promoting Their Ethics
Today, many banks and other financial institutions are promoting their ethics policies where they can be easily accessed by consumers. This often entails placing these details on the company website as well as in brochures and other promotional items.
An example of the wording in a bank’s code of ethics may include the following statement:
“We believe that you want to conduct business with an organization that values honesty and integrity, not only because the law requires it, but also because it is the right thing to do.”
Realizing that they can easily lose existing customers – and may not bring in as many new ones – it has almost become a necessity for banks to make their ethics policies known in order to re-gain the trust and the business of today’s more cautious consumer.
Finding an Ethical Bank
When seeking an ethical bank for the deposit of funds and/or for the purpose of obtaining a mortgage or business loan, it is important to first inquire as to the bank’s policies and procedures when dealing with ethical issues.
Outside of inquiring with the bank itself, there are also many other unrelated organizations that can assist in providing information as to the morals and ethics of banks and other companies as well.
One great resource is the Better Business Bureau, or BBB. For many years, this entity has provided information on issues – both positive and negative – with regard to how organizations handle complaints and other important factors.
The BBB makes information known to interested consumers via a toll-free phone number as well as through postings on their website. Should a bank have had issues in the past, the BBB will also typically have information available regarding if or how those issues were resolved.
Another great resource for obtaining information about companies and organizations’ ethics is to go to www.ripoffreport.com. This website provides a great deal of information on companies that have not acted in the most ethical manner when dealing with consumers or other businesses.
Here, actual emails from such consumers may be viewed, along with any responses and / or rebuttals from the organizations as to if or how they will resolve the matter. The site also provides a guide on how to file a class action lawsuit for consumers who wish to file civil or criminal proceedings against companies that have engaged in wrongdoing.
Certainly, another great way to get a feel for the ethical treatment of customers by a bank is to directly ask the organization’s actual customers – both past and present. Many banking institutions – and especially the larger firms – will have online forums in which individuals can state their opinions and descriptions of the service that they have received. Reading these “testimonials” can oftentimes give you all the information that you need about the bank.
Moving Forward With an Ethical Financial Institution
When depositing funds or transacting other business with a bank, consumers are oftentimes given written information regarding the institution’s privacy policy as well as their ethics code. It is a good idea to keep this information in a file, along with other pertinent documents such as transaction records, in the case that it needs to be referred to in the future.