Abstract

The United Kingdom banking sector's vital role in supporting the real economy and preserving its global pre-eminence has been eroded by a pervasive loss of trust beset by a decline in banking standards and multiple conduct failures. In the UK and elsewhere, these failures have been embodied in the wave of high-profile banking scandals that continue to profoundly question the efficacy of post global financial crisis reform measures. Inevitably with misconduct comes costs — this is euphemistically termed 'conduct costs'. Against this background, this paper broadly looks to sustainability accounting as a mechanism for rebuilding trust. The paper specifically analyses the trade-offs in conduct costs reporting, as a pragmatic sustainability accounting tool, to rebuild trust in the banking sector.

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