Co-op sets up 'ethical policy'

The Co-operative Insurance Society has unveiled details of its new ethical policy system, said to be the first in the world.

Under the terms of the new plan CIS will operate with regard to a series of ethical issues, including the arms trade, labour standards and corporate social responsibility.

Using the strength of the £20 billion worth of custom it takes care of, the CIS says it will adopt a new rigour in its business practices.

Chief executive David Anderson explained: "For the first time and in the best traditions of a co-operative, individual policyholders have had their say, so there is now a direct link between an individual customer and the engagement policy of a major institutional investor.

"I am confident that this will contribute to new standards being set in socially responsible investment which other institutional investors will increasingly wish to follow."

A staggering 98 per cent of policyholders backed the initiative, which echoes the ethical stance taken by the Co-operative bank.