Sir Victor Blank, former chairman of Lloyds Banking Group, has called on businesses to recognise charity “not as an optional extra but as a core part of their responsibility”.

Commenting in The Telegraph on Saturday Sir Victor, who is also chair of reproductive health charity Wellbeing of Women and of the Royal College of Obstetricians and Gynaecologists, said that businesses which reject the opportunity now to make a difference will do so “at their peril”, advising that “customers are demanding responsible corporate citizenship”. 

“In the wave of recriminations after the crunch, we are in danger of forgetting the fact that business can be a powerful force for good, not least through the power of philanthropy,” he said, adding that a modern “21st century philanthropy” was necessary to “regain the trust and respect of communities in which (businesses) operate”.

A quarter of all UK charities saw donations fall last year and more than half were affected by an increase in costs according to a survey conducted by the Charity Commission, but one in five also experienced increased demand for their services. To combat this, Sir Victor said, companies should adopt the motto “charity begins at work” providing employees with time to do voluntary work or use their skills for social benefit.

He pointed fingers particularly at the FTSE 100 companies which currently donate only 0.2 per cent of their profits to charity. "The figure should be a multiple of that," he said, calling for a change in attitude from shareholders and corporate management.

His comments come ahead of an expected announcement later today by the UK’s leading banks, which have been in secretive talks with the chancellor George Osborne over how to rebuild their reputation after the financial crisis. ‘Project Merlin’ as the discussions have been dubbed, is rumoured to include a sizable donation to the Big Society Bank which will provide funds to civil society groups when it opens in April.