If any of you haven’t seen yesterday’s Wall Street Journal article on the vulnerability of big banks to scandals (JP Morgan and Citigroup), give it a read (you’ll need a subscription to get access) . They claim that the “politicization of bank lending hurts not only the banks, but also the future of the economy,� and goes on to say that groups like RAN are simply capitalizing on the power vacuum within corporate America as a result of scandals like Enron, WorldCom, Tyco and Sarbanes-Oxley.

“You may ask: What harm comes from pressuring big banks to pay more attention to the effect their lending policies have on the environment? The banks insist the policies don’t hurt their bottom line…And even people who believe companies need to be more socially responsible ought to worry that denying loans for oil drilling and timber cutting will hurt poor nations desperately trying to pull themselves out of poverty.â€?

Hmmm…see here, here and here for how companies have failed to elevate poor nations out of poverty in the past.

The WSJ is taking comments right now asking for your feedback on this issue. I would think that Americans want bank policies which share our modern environmental values. Values that protect endangered forests and species, not to mention our children and neighbors. Isn’t caring for the environment a 21st century moral value? We think so. And yes, bank policies and practices should reflect modern social values or else why are they in business? It is just as wrong for a bank to do business with a company that uses child labor to make brand-name basketball shoes as it is with a company that clear cuts forests or kills elephants for their ivory. Give your 2 cents and more.