VANCOUVER, B.C.–Credit unions gathered here were urged to begin thinking in terms of an “ethical future,” a role they are uniquely qualified to fill, according to two people.
Two “ethical futurists,” Alison Burns and James Taylor, who focus on issues related to business ethics, sustainability and leadership, shared numerous examples drawn from the broader business community and credit unions themselves to offer recommendations to attendees at the World Credit Union Conference here on how to “design for a more ethical future.”
According to Burns, credit unions have been leading on the idea of ethics in finance for more than a century.
“Your organizations exist to serve the collective financial needs, and doing the right thing, the ethical thing, has always been embedded in the DNA of credit unions,” she said.
Alison Burns speaking to WCUC in Vancouver.
Life on Fast-Forward
Burns told an audience drawn from around the world that the pandemic has fast-forwarded everyone into a future that will now be shaped by the “three D’s”: decarbonization digitization and deglobalization.
“You and I have lived through an incredible age, a 50-year period of globalization,” Taylor said. “It’s a period from the early 70s until relatively recently. It took hundreds of millions of people out of poverty. It made our world a more connected place. It made our societies more prosperous and innovative.
Increasing Inequality
“But it also increased levels of inequality. What many experts are saying is that we're starting to see a period of decolonization as things start to shift and places become slightly less connected.”
Burns said decarbonization is the “number-one challenge we face as a species.”
“The financial industry has been on slow path to sustainability. We need to learn from nature and think about a new, circular regenerative economy and to take a holistic approach to solving the climate crisis.”
And just what is “sustainability?” Burns shared the definition the United Nations uses: “Meeting the needs of the present without compromising the ability of future generations to meet their own needs.”
The two futurists said climate change poses a threat to every credit union and financial institution, and said research shows a majority of U.S financial institutions consider climate change a key risk over next five years.
Generational Issues
Moreover, said Burns and Taylor, Millennials and Gen Z’s are particularly anxious about the climate crisis, with more than half of Gen Z and Millennials saying they would switch to an eco-friendly bank that reflects their values.
“For credit unions this is a great opportunity,” said Taylor.
Taylor emphasized that the prepandemic environment will not be returning, and offered a history lesson for those who long for the old days to return. He said the United Kingdom never experienced the “Roaring 20s” of a century ago because it’s leadership wanted to go back to the way things were before World War I.
Those leaders, he said, lacked the “three C’s.”
The Three C’s
Burns and Taylor said the three C’s every leader needs to have are curiosity, creativity and cooperation.
- Curiosity. “The good news is you have this,” said Burns. “Those who change the world have a desire to know.” Added Taylor, “Once we start asking questions we need creative solutions to solve those problems. Creativity is the number-one soft skill employers are looking for. Collaboration is number three."
- Creativity. “Creativity is about bringing new ideas to the mind. Innovation is about bringing new ideas to the world,” said Taylor.
- Collaboration. “Credit unions were founded around this idea of collaboration,” said Burns. “We now live under a shared global threat, the climate crisis, and how we adapt to it is something we all have in common. We need a new common bond, one that is fit for the 21st century, and this new common bond is even deeper. It’s about working with nature to regenerate, rather than working against nature.”
Three Keys to Better Questions
Burns and Taylor said the key to curiosity is asking questions, and said there are three different scenarios for asking questions and finding answers in new ways:
James Taylor speaking to WCUC in Vancouver.
- Human plus human collaboration, or “creative pairs.” This is about two different but complimentary individuals who are willing to develop and improve each other’s ideas. “Ask yourself, what creative pairings do you have in your organization,” advised Taylor.
- Collaborative Teams. This is about getting everyone in the credit union involved in initiatives aimed at creating more sustainable, prosperous CUs. CUs should focus on the aggregation of micro gains, Burns said. Taylor pointed to Health Services Staffs Credit Union in Ireland, which tackled deforestation in the country by partnering with an organization to plant a tree for every new account opened. “By playing a small part in reversing Ireland’s deforestation, this credit union is contributing to the reforestation of the planet,” said Burns. “Can you imagine if this happened on a worldwide scale--if each CU planted a tree for each member? That’s 375 million trees.”
- Human Plus Machine Cooperation, or Super Collaboration. “Imagine the services you can create with your members if you embrace this and you cooperate with machines,” Taylor said.
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