Sector special: Fair tax helps building societies meet ‘higher expectations’ of social responsibility

In this series for the Fair Tax Foundation, our accredited organisations tell us how the Fair Tax Mark has helped open opportunities or overcome challenges specific to their sector. Here, Coventry Building Society Senior Manager Finance Ops & Controls Claire Newton and Ecology Building Society CEO Gareth Griffiths discuss the responsibility to members inherent to building societies.

Events such as the 2008 financial crisis, the Libor scandal and mis-selling activities, mean financial services aren’t always known for their social responsibility.  

“The financial services sector has been renowned in the past for its excess profits,” said Claire Newton, Senior Manager Finance Ops and Controls at Coventry Building Society.  

But for building societies within the sector, social responsibility is key, as it directly impacts members who own and drive the institutions.  

Building societies are an important part of the financial infrastructure in the UK with a major share of the residential mortgage and savings market, according to the Building Societies Association, which also found they account for more than £30bn of publicly listed securities and private placements.  

For Newton, the Fair Tax Mark is one way social responsibility can be enacted at Coventry Building Society, which were first accredited in 2022 and are the UK’s second largest building society.  

“The Fair Tax Mark demonstrates that the Society takes its social responsibilities seriously by paying the right amount of tax to the authorities, which is mutually beneficial to all,” she explained. 

“Because we care about making life better, not only for our members, but for everyone across society.” 

Meeting member needs

Coventry Building Society’s priority is based on meeting the needs of its members and doing the right thing, Newton added. “Part of this is to be fair, open, and honest in all that we do. Having the Fair Tax Mark accreditation demonstrates this and enhances our attraction to those customers who want a financial institution who is fair, caring, and transparent.” 

Building society customers are clearly a driving force behind the sector’s need for socially responsible activities. In fact, a 2019 Leeds Building Society customer survey found 96% of respondents said payment of the fair amount of tax is integral to being a responsible business.

Gareth Griffiths, CEO of Ecology Building Society, said: “As building societies are member-owned and member-driven, our customers have higher expectations of us to clearly demonstrate our principles of social responsibility.”  

Ecology Building Society were the first building society to be Fair Tax accredited, back in 2016. They offer sustainable mortgages for properties and projects that respect the environment, funded through simple, transparent savings accounts. They believe in affordable housing and sustainable communities. 

Griffiths added: “We strive to be part of our community and the communities our members create – paying our fair share of tax helps to fund the essential services upon which we all rely.”