Corporate,Social,Responsibilit business, insurance Corporate Social Responsibility in Banks; What does it mean?

Small offices have unique needs, and thatincludes document shredding. Designed with the smaller business inmind, the Dahle 20314 is a cross-cut shredder that offers Level 3security and brings you into compliance with federal regulations. The As we all know to live in this world we have to perform some activity by which we can earn money. There are many activities by which we can earn money and meet the standards to live in this society. And from one of them is franchise.  Franc

Normal 0 false false false MicrosoftInternetExplorer4 /* Style Definitions */ table.MsoNormalTable{mso-style-name:"Table Normal";mso-tstyle-rowband-size:0;mso-tstyle-colband-size:0;mso-style-noshow:yes;mso-style-parent:"";mso-padding-alt:0in 5.4pt 0in 5.4pt;mso-para-margin:0in;mso-para-margin-bottom:.0001pt;mso-pagination:widow-orphan;font-size:10.0pt;font-family:"Times New Roman";mso-fareast-font-family:"Times New Roman";mso-ansi-language:#0400;mso-fareast-language:#0400;mso-bidi-language:#0400;}Over the past few years, arising emphasis has been placed on companies and financial institutions’Corporate Social Responsibility. But what does Corporate Social Responsibility(CSR)" mean anyway? This is indeed one of the most frequently askedquestions for all those dealing with CSR matters.  CSR is also known ascorporate responsibility, corporate citizenship, responsible business, sustainableresponsible business (SRB), or corporate social performance. Differentorganizations have developed different definitions and there is large commonground between them.  A simple definition refersto CSR as how companies and financial institutions take into consideration theimpact on society of their operational activities. Consequently, it requires abuilt-in, self-regulating mechanism whereby businesses would monitor and ensuretheir adherence to law, ethical standards, and international norms to producean overall positive impact on society. It is not surprising to seethat CSR is subject to considerable amount of debate and criticism. Advocatesargue that businesses benefit in many ways by operating with a perceptionbroader and longer than their own immediate, short-term profits. Opponentsargue that CSR diverts from the basic economic role of business; others arguethat it is nothing more than superficial window-dressing; Largely, the bankingindustry in the Middle East does not realize the central importance of having adefined CSR policy. Many banks do not fully understand the worth of CSR. There are obvious and realgains on hand for banks which have well-designed and successful CSR strategies.They can promote their profile in the community they serve, enhance local, andcross-border economic performance, and enable community development, at thesame time strengthening their profitability.CSR focuses more on how companiesand financial institutions can contribute through their core business, inaddition to traditional charitable donations.CSR andProject FinanceCSR practices are often implementedin banks’ core business, which are credit and investments. Project finance isone of the methods to get capital for investment opportunities.       Banks consider how to fairly balancethe risk and interests of the various participating parties, includingprotecting the interest of those who are directly and indirectly affected -specifically the local community that reside within or close to the areaimpacted by the project. It is recommended that banksrecognize their responsibility to prevent or limit social and environmentalharm that may have been caused by activities financed by them; they need toadopt appropriate analysis and verification procedures. Banks have impact on the environmentdirectly and indirectly. Lending and investments activities have an indirectimpact on the environment. Therefore, banks should be encouraged to considerenvironmentally-friendly purposes in their credit decisions. To this end, banksmay offer incentives to credit facilities for “green” investments such asimproving a buildings’ insulation or more efficient lighting systems which usealternative energy sources. The bank may apply less stringent rules in relationto collaterals or offer discounted loans to such clients for these types ofinvestments. There are approaches that explorehow banks are linking the traditional credit risk assessment with theborrower’s environmental risk assessment. In other words a bank can assess theenvironmental credit risk of the borrowing customer and then factor in theresults of this assessment at some stage of the creditworthy assessmentprocess.Community involvementCommunity involvement is the basisof all accomplished CSR policy initiatives and extends far beyond the standardcharitable measures. Banks should introduce innovative schemes such as:  - permanent  learning programs for disadvantaged sectorsof society; - sponsorshipof young entrepreneurs;  - provisionof academic scholarships and research proposals;- support environmental issues suchas recycling and waste management;- community support programs;- health support programs;- financialsupport for art and culture;Banks may also supportnon-governmental organizations engaged in drug prevention measures for theyouth with a mentorship and parental training programmes. Bank employees can bementors for pupils at the senior level of the compulsory school during oneschool year.Awareness and TransparencyIt is essential that there should bea transparent and strong commitment to adoption of CSR practices. This can bereached through explicit reference to CSR activities adopted by banks throughthe following means: - dedicatingsections of Annual Reports to CSR matters;- publishingof Sustainability Reports and/or policy statements on CSR; and web-basedinformation.It should be noted that corporate sustainability for banksis much more than mere charity. In this context, banks are encouraged toimprove the future of the people in all communities they operate  through CSR programmes, which in turn willsustain their business in the future. In Europe, a dramatic change hasbeen in the type of CSR reporting which has changed from simply environmentalreporting to sustainability (social, environmental and economic reporting whichhas now become typical among top listed companies). There has been an increasein the number of companies publishing CSR information as part of their annualreports.Banks and the Environment Just like other business sectors,the business of banking has a direct impact on the environment throughconsumption of paper, energy, waste management and means of transport used.Direct environmental impact can be reduced by keeping environmental order inbanks themselves, through limiting the consumption of energy and paper,ensuring good waste management and requiring suppliers’ to conform toenvironmental standards. A bank can minimize the impact in a systematic mannerthrough implementing an environmental policy; it can even go further and applyfor environmental certification in accordance with ISO 14001. The ISO 14001 is a standard for environmentalmanagement systems that is applicable to any business. It aims to reduce theenvironmental footprint of a business and to decrease the pollution and waste abusiness produces. Good examples from the bankingsector include Deutsche Bank, Barclays Bank and Alpine Bank of Colorado. Theyhave constructed a comprehensive Sustainability Management System in accordancewith ISO 14001 and permitted an independent certification agency to monitortheir commitment in the field of sustainability by making sure they comply withthe requirements of ISO 14001 standard.Financial Inclusion The market in which banks operatetoday requires new range of products targeting new customer segments includinggroups who are not yet fully integrated in society, and not dealing with bankssuch as temporary workers, low-income families, and micro businesses operatingin poor areas of the country. This situation represents for banksa challenge in terms of designing suitable products for these distinctsegments, and the opportunity to develop a new type of business beneficial toall. Some good examples of responding to the challenge would be microfinanceand financial education. Banks are encouraged to promotefinancial education projects involving different target groups. This isachieved in two ways. Firstly, by concluding agreements with strategic partnerswhich are recognized by the target groups in order to inform them better onfinancial services and products which they will use in their daily life.  Secondly, by developing contacts with thelocal authorities towards certain target groups. These target groups includeprimary schools, secondary schools, higher education, universities, and thegeneral public world.Some initiatives involve surveyswhich provide insight into the challenges and opportunities related tofinancial literacy in the target groups of children, teens, students and youngadults. Another consists of developing new products, educational materials andevents intended to stimulate financial skills and knowledge. Perhaps the bestexample is an educational website with fun, online exercises for children, tipsand advice for parents on how to educate children financially. ConclusionThe key factors for a successful CSRpolicy can be summarized as follows: - Continuoussupport of senior management and all staff - ReportingCSR – internally and externally, on a long-term basis, with regular reviews- Include CSRas integral part of corporate strategy of the bankThe advantages for banks in adoptingwell-designed CSR initiatives lie in the following areas: - Encouragessustainable behavior by customers;- Supportsdevelopment of separate business models for various segments;- Providesreal benefits for the society as a whole;- createshigher employee motivation, and superior performance levels;- Makes banksmore aware of their potential role in society;- Createspositive publicity and/or increased brand recognition.About The Author: Hany Abou-El-Fotouh is Chief ofStaff  & Group Board Secretary, CICapital Holding - the investment banking arm of Commercial International Bank whichis the largest private bank in   Egypt . He provides advice and directionto the Board and management with respect to corporate governance practices andformulates corporate policies. Hany is a leading expert on moneylaundering and terrorist financing controls in the MENA region. Founder of theMiddle East Compliance Officers' Forum (MECOF), he has been honored for hiswork in promoting compliance culture and awareness in the MENA region  Hany writes articles to differentnewspapers and journals on a variety of subjects. He is a public speaker andprofessional trainer.  Previously, heworked in various senior positions in leading banks in Egypt and GCC countrieslike HSBC, Oman International Bank, Banque Saudi Fransi among others Hany is a certifiedmember of the Association of Certified Anti-Money Laundering Specialists(ACAMS) and Certified Director by Egyptian Institute of Directors http://www.linkedin.com/in/ hanyfotouh[email protected]