Morality and money

It's commonly being said that RBS boss Stephen Hester has done the 'right thing' in giving up his bonus of nearly £1 million. On todays Daily Politics it was even described by one commentator as the 'moral' thing to do. Was morality his motivation? Surely the right and moral thing for this man to do would be to stick by what he believes in - huge salaries and very large bonuses - and work through the consequences of doing this. He has not given up his bonus because he believes it's right and moral to do. Its been widely reported (here for example)  that he did so because he did not want to be a 'pariah'. Its also been reported that his hand was forced by the prospect of a House of Commons vote (see here). For me being motivated by concern about being despised or confronted is not showing much moral spine at all. Mr Hester, who is still very likely to add to his already very large pile of money, has a morality comparable to RBS's directors, who according to the BBC's Robert Peston '...now recognise it would have been far better to delay the bonus decision until after the world had seen what Barclays' chief executive, Bob Diamond, is being paid - because Mr Hester's bonus would not look big in comparison.' They too are more concerned with impressions created than realities.

Other posts relating to Stephen Hester/RBS:

http://vowlesthegreen.blogspot.com/2010/01/when-will-bankers-like-this-get-their.html 

 http://vowlesthegreen.blogspot.com/2012/01/caring-compassionate.html

Caring, compassionate capitalism...contradiction

Capitalism, favouring private ownership, maximising private profit, decisions made by a free market, economic growth as the primary aim – is currently the subject of many party leader speeches. Reference has been made by Tory PM Cameron, Lib Dem Deputy PM Clegg and Labour Opposition Leader Miliband to making capitalism, as it currently works, more: responsible; moral; compassionate; caring – and thus popular and acceptable. This, at least, is an acknowledgement that capitalism is now operating: irresponsibly; immorally; uncaringly; without compassion – and that its popularity and public acceptability has suffered. However, along comes a chance for action that would send out a strong signal that significant change in the whole system is coming – and absolutely nothing is done, just as nothing was done by previous governments.The already very wealthy RBS boss Stephen Hester is allowed by the Govt to receive a bonus of about £1 million on top of his £1.2 million annual salary. RBS was saved using many billions of taxpayers money and is 82% publicly owned, the PM has said we are all in difficult economic times together, has said he wants to tackle excessive pay and bonuses...words, words, only words. See here, here and here for more.

The solutions offered up by the Tory/Liberal Govt, previous Tory and Labour Governments and the current Labour Opposition are those of capitalism – the very thing they have all described as deficient in some way. Coalition Ministers talk of: the importance of finance; the deficit and its ‘correction’ through cuts and freezing public sector pay; economic growth as essential; how we must remove obstacles to growth; how growth should be led by private enterprise; their pro-market, pro-business, pro-competition agenda. They say high taxes on rich people and companies could send them abroad. Private, market incentives are to operate in Royal Mail, the NHS and Higher Education. Has it occurred to them that solving the problems of capitalism with more capitalism may well be like solving the problems of alcoholism with more alcohol? Show me a version of capitalism that is or can be developed to be socially sustainable because it shares wealth fairly and environmentally sustainable because it does not rely on and run down finite resources and you will get my attention!!   

More posts on capitalism:

http://vowlesthegreen.blogspot.com/2010/01/when-will-bankers-like-this-get-their.html

http://bristol.indymedia.org/article/697599

http://vowlesthegreen.blogspot.com/2010/10/capitalist-ideology-dominates-cuts.html  

http://vowlesthegreen.blogspot.com/2008/09/cabot-circus-consumerism-capitalism.html
http://vowlesthegreen.blogspot.com/2010/11/house-of-cards-economics.html