eee I ce Brand power Selling points wna ind of each product do you think your partner would bu Speaking 4 Work in pairs, What brat Listening 1 (@)2 Five people explain why they bought one of he products. Listen and decide the mai (=i) reason for each purchase. A aftersales service B environmental-riendlin performance D price E reliability F reputation G style H userfriendliness aeonsvain Ethical businesses Read the first paragraph of the article and then talk to your partner about it. Do you agree or disagree with what it says? Give reasons for your opinion. Then read the rest of the article and discuss how the Co-operative Bank achieves its goal of being an ethical business. ‘There are, however, companies who put ethics high ‘on their list of corporate goals and values. One company usually connected with ethical business is The Body Shop, which was founded in the mid 70sasan alternative fo other cosmeties and toiletries companies. From the start, The Body Shop has supported environmental ‘issues, human and animal rights and have been strong [proponents of Fair Trade items. Perhaps less known is that there is a bank which feels that ethics are important. The Co-operative Bank admits in their adverts that they are in business to make money. They lay out the ground rules by saying that banks eam income by borrowing your money and lending it to someone else at a higher interest rate. But they point ‘out that most banks do not tell you who they lend your ‘money to. In 1992 the Co-operative Bank launched an Ethical Policy which encourages customers to tell them ‘who they should support financially. Since this policy ‘went into effect, the Co-operative Bank has withheld more than £1 billion in funding from companies that their customers feel are involved in unethical business practices. In addition, the Co-operative has an Ethical Engagement Policy in place for their insurance and investment business, and attends the Annual General Meetings (AGMSs) of companies it invests in to ensure that business dealings are in line with the Co-operative's ethical policies. These two policies work in different ways. The first gathers information from customers about areas of concem such as genetic modification, Fair Trade, human and animals rights and sets a social agenda. It then makes sure that they do not enter into business dealings with companies who do not comply with theit policies. The second works at changing companies from the inside using their power as corporate shareholders, to bring about change. ‘The Co-operative Bank has been in business since 1872 and has tried over the years to do what is best for its members and the community it operates in, Today the bank is part of The Co-operative which is the largest consumer co-operative in the world and has over 6.5 million members. The members are both customers and shareholders and have a say in how the business is run. They also receive a share of the profits ‘based on the amount of trade they do with the different branches of the Co-operative family. ‘Today the Co-operative runs not only the bank, but also an insurance company, a supermarket chain, pharmacies, travel agents, electrical goods stores, and even makes up the largest group of farmers in the UK. Using some of the same slogans and logos, the Co-operative has carried out a successful brand-stretching policy by ‘making sure their core values run throughout the diverse ‘businesses. Its goal is to practice what it preaches in all aspects of the business. For example, the supermarkets carry over 200 lines of Fair Trade foods and sell food grown on their own farms under their own brand, ‘The pharmacies offer free health checks and provide healthcare for communities and the insurance company ‘was the first to offer EcoMotor insurance for cars with lower emissions. ‘The Co-operative, which has been in business for over a 100 years, has proven that it is able to make profits, cling to its ideals and create brand loyalty, demonstrating that ethics and business can go hand-in-hand. brand power 51ll 2 Read the article again and answer the questions. Why are advertisements unethical? » How does The Body Shop express its ethical values? What role do the customers at the Co-operative Bank play regarding the bank's lending policies? e How does the Co-operative Bank try to change companies it invests in? Who owns the Co-operative? How does The Co-operative practice what it preaches? 3 Do you think that co-operatives can also be successful businesses? Would you be interested in being a member of one? Why or why not? Do you think the article demonstrates that ethics and business can go hand-in-hand? Are there any other ethical: businesses you know about? The Co-operative Reading 2 1. Look atthe adverts for the Co-operative and match them to the financial products in the bo A credit card B current account € pet insurance D personal loan E car insurance F online banking ‘We are good with peney whichever way you look at it’. They'sone PR Le nese @® . 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