Chaotic misplaced whining of pampered yet unemployable middle-class youth or justified expression of outrage in a political system that has for a long time favored its corporate citizens over those made of flesh and blood; regardless of your thoughts about Occupy Wall Street and whether or not this will accomplish anything, it is clear the now weeks-long protest demonstrates exasperation for SOME of the US and (as evidenced by solidarity movements worldwide) global population using the perceived influence which banking institutions have over government. Away from masses huddled in Zucotti Park, it is generally acknowledged that the financial services sector includes a reputation problem. In a recent Harris Poll, banks ranked just ahead of airlines amongst Americans asked whether a business is 'doing a good job'.

Occupy Detroit

So who cares? Why must banks worry how they are believed to be through the average American? They are especially valid questions if a most of your lending is to large corporate clients and institutions instead of Mom and Pop small business loans or mortgages. Even if individual consumers detest banks (and can't distinguish investment banks from other areas of the financial services sector), everybody need access to credit and other financial services to function.

To have an industry and individual companies there to survive and flourish, the markets and societies in which they operate need to approve, or at least condone, their activities. When this 'social license' is fixed or revoked, the industry diminishes profitable and much more hard to operate or survive within. For example, I encourage you to definitely take a look at Altria, Phillip Morris, to illustrate a business that had to substantially rethink its business design and incredibly identity as its social license to use grew more restricted in recent decades.

There's already substantial frustration in the usa with banks, their fee structures, and their perceived influence within the federal government. Movements such as Occupy Wall Street only add additional oomph towards the reputational headwinds blowing against the financial services sector. Should these winds grow strong enough, they might eventually sway regulators to rethink policies and result in outcomes that are unfavorable towards the banking industry.

Occupy Toronto

Where does sustainability are available in? Essentially, it's an element of good corporate citizenship that, combined with other behaviors, helps you to maintain and enhance an industry's social license to operate. We've often had clients remark that regulators on sides of the political asks them regarding their green lending activities in meetings or interviews that are not specifically associated with energy or any other environmentally-intensive subjects. We've also seen this within our direct experience with public sectors leaders, both in the united states and in Asia. Regardless of party ideology or agenda, no leader really wants to be seen directly as anti-environment (keep in mind that BP now considers itself Beyond Petroleum and not even Sarah Palin wants to completely disband the US EPA).

In short, dedication and demonstrable contribution toward a more sustainable future might help banks and other organizations growing a more favorable environment in which to operate. There are more important components to think about (you can't charge usurious fees, for instance), but building a better future certainly helps to maintain the social license to operate; a license which Occupy Wall Street reminds us is essential.