Is it possible to be ethically correct when participating in the banking system?
Introduction to the arms trade In this essay, I am going to discuss the ethics surrounding the UK banking system, whilst arguing whether it could be considered morally and ethically correct in terms of what these banks affiliate themselves with, or for the people who participate and utilise these facilities, whether that be knowing or unknowing of these affiliations themselves.
To begin with, the first argument regarding the UK banking systems ethical grounding is what it is responsible for. “The arms industry is an industry unlike any other. It is responsible for producing machines that main or kill human beings and wipe out whole communities- and it profits from the destruction” (War on Want, 2009) This wouldn’t be possible without money to invest- whenever we put money into the bank. But how is it that we, participants in UK banks, are contributing to this? To summarise how UK banks contribute to the arms trade, it all comes down to investments. When a bank invests in arms companies, it is wages and savings from our personal accounts which have been put out and invested in order for you to gain interest. This interest comes from the money the banks are making from investing in things such as international arms. Some may argue that this is very damaging, as the interest being built onto many people’s current accounts could be enough incentive to stay with a bank despite their unethical endeavours. One example of argument supporting the ideas that banking in the UK is considered unethical would be from War on Want’s article on ‘Up Front’ Blood Banks. In summary, this article surrounds where the money we pay into our banks goes, and exactly what it is used for. “For years UK high street banks have been funding the arms trade, a lethal business which fuels conflict around the world. The arms industry profits directly from war, and provides the weapons which kill civilians and undermine development in the world’s poorest countries.” (War on Want, 2009) “Despite its appalling record on human rights and its continuing illegal occupation of Palestine, every year the UK government licenses arms sales to Israel worth millions of pounds. UK is world’s second largest exploiter of arms after the US The UK exported £53 billion worth of weaponry in the past 5 years to countries including Saudi arabia, Colombia and Israel.” (War on Want, 2009) Barclays for example has arms shares worth £.7.3 billion “War creates opportunities for business – Iraq conflict has been benefitting companies who share in arms. When Israel raids gaza, they gain over and over.” (Williams .J, 2009) But is this Unethical? When analysing the technicality of ‘ethics’ in the eyes of the law, investing people’s money in arms can be considered both ethical and unethical. For example, according to New York: Oxford University Press, an act is considered legally