Corporate Social Responsibility & Barclaycard

Dating back to 1966, Barclaycard is the UK’s oldest credit card. It approaches its fortieth year charged with gross irresponsibility and implicated in the high profile suicide of a customer. UK debt has grown like Topsy since Barclaycard launched and it’s not been all good news for the banks. The Big Five are on track to write down £11bn in bad debt this year. As our total borrowing heads towards £1.1 trillion, with plastic making up £55.68 billion, many are looking to apportion blame and curb credit cards through legislation and regulation.

Stories like this illustrate the need for business to take corporate social responsibility seriously and show that the irresponsible are punished with regulation. Barclaycard is a market-orientated business with a good understanding of the demand for its products and an ability to encourage and exploit that demand.

But market forces do not shape the world on their own and Barclaycard is now anxious to rebuild its image. Barclaycard wants to be seen as a responsible lender. It wants to avoid being hit by legislation and an increased regulatory burden. To achieve this, the business will need to complement its understanding of the marketplace with an equally thorough understanding of the wider society in which it operates. That will require instigating a genuine dialogue between all those with a stake in its business activities – not just consumers. Responsibility may mean forgoing some business and short term profit. The long term reward will be a good reputation as a responsible corporation that does not require government to intervene.
Contact Stephen Newton

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