As evident from the developments around the globe, proliferation of the social media from instant messaging and blogs to social networking sites with its enormous “word-of-mouth” impact has made it possible that anybody can be a stakeholder, making the selection and prioritization of stakeholders to engage with difficult and also, changing the manner corporates communicate with them. While compounding these difficulties, the unprecedented conditions that prevailed in the recent past have created an acute need to engage deeply with stakeholders to clearly identify their concerns and aspirations and appropriately engage with them.
Accordingly, the Bank considers those that have the potential to make an impact on its value creation process and those who are affected by its activities as its stakeholders that need to be constantly engaged with. Based on the above, we have identified the following groups to be our key stakeholders (Table 02) considering their power and their interest in our business model and we have presented them in the order of their ability to affect our operations from high to low.
The diagram given below (Figure 02) demonstrates the stakeholder engagement process in place at the Bank which reflects our ethos of having the best interest of all the stakeholders at heart – Bank’s tag line – “Our interest is in you” which has enabled us to maintain continuous and open engagement through multiple platforms, thereby strengthening collaboration with stakeholders. This process has paved the way for us to incorporate their legitimate concerns and expectations in to our strategy and deliver value to and, in turn, derive value from them, leading to sustainable value creation.
Table – 02: Our Key Stakeholders
Stakeholder group
Level of priority and the reason
Engagement strategy
Investors
High – due to the difficulty in raising fresh capital to meet the capital management objectives of the Bank given the lackluster performance in equity markets consequent to the adverse economic environment
Highly engaged
Customers
High – because the ability to operate as a “going concern” depends on how best and effectively their expectations are met
Highly engaged
Employees
High – they connect the Bank and the customers
Highly engaged
Government institutions and regulators
High to moderate – since we are operating in a highly regulated industry and being a top tier Domestic Systemically Important Bank
Keep satisfied
Business partners
High to moderate – due to the dependence on critical to less customized solutions by vendors
Keep informed
Society and environment
High to moderate – due to the obligation to operate responsibly to secure its social license
Keep informed
As depicted in Table 03, multiple formal mechanisms are in place to connect with our stakeholder groups, to address their expectations. Responsibility for such engagement is shared across the Bank at every stakeholder point of contact.
The changes brought about by the pandemic affected the way, the level and the frequency of engagement with our stakeholders. Following the movement restrictions and lockdowns during the year, we resorted to digital mediums more and more in engaging with our stakeholders.
Our stakeholder engagement process enables to better adapt ourselves to meet the evolving challenges, sustain and improve our business model, drive innovation, and gather invaluable insights for our strategic planning process.
Table – 03: Mode and frequency of stakeholder engagement
What are the key topics raised and
feedback provided
Financial performance
Governance
Transparency and disclosure
Business expansion plans
Risk management
Sustainable growth
Resilience to the effects of the pandemic
Rising NPA and impairment charges
Dividend payments
Economic slowdown due to lack of policy consistency
Achieving sustainable business growth against accepted risks
Sharp drop in the FCY reserves and successive sovereign downgrades
Swift service
Customer security and privacy
Service quality
Affordability of services and convenience
Grievance handling mechanism
Financial education and literacy
Financial support for revival of business
Access to financial services
Enrolment to digital platforms
Operationalising of CBSL directives
Growing interest in sustainable investing among private sector
Need of Financial support for women entrepreneurs
How did the Bank respond to stakeholders
Robust Risk Management Framework
Optimum levels of liquidity and maximising profitability by optimal usage of liquid assets
Maintained comfortable levels of capital adequacy
Worked closely with its corresponding banks and its trade finance customers to manage the foreign currency liquidity
Reached out to new funding partners and established new funding lines
Adjusting the ways of working and service delivery channels and providing the necessary infrastructure to support customers
Set up Mini Digital Experience Zones, to help customers gradually migrate into digital channels
Extended relief to diverse customers affected by the pandemic through moratorium schemes, relief to non-performing borrowers, reduction of lending rates
Non financial support to SMEs and Micro Businesses - Com Bank Biz Club launched grew by 830 to 4866 members in 2021. An initiative was taken to launch an exclusive Credit Card for SMEs and members were enabled to receive economic updates and alerts on new business developments via email and SMS
The Bank has assisted SME customers with financial literacy programmes
A range of new financial and non-financial products and services were launched including the Anagi Business Loan for women SMEs, Anagi Instant Loan for salaried women, Anagi Credit Card, insurance for women customers and entrepreneurship skill development programs for women
Responses to consultation papers on Directions and other regulations
As specified
What are the key topics raised and feedback provided
Performance and reward management
Training and development
Career advancement opportunities
Work-life balance
Retirement benefit plans
Diversity and inclusion
Safety at workplace
Stable performance of the Bank
Responsible financing
Commitment to community
Financial inclusion, recruitment
Microfinance and SME
Ethics and business conduct
Environmental performance
Employment opportunities
Compliance with directives and codes
Microfinance and SME development
Stability of the financial system
Migration to cashless payment platforms
Supporting economic recovery and growth
How did the Bank respond
to stakeholders
A group of identified potential branch Managers were enrolled to a Leadership Development Program conducted by the Postgraduate Institute of Management (PIM)
Special Virtual training programs were conducted targeting Branch Managers, Assistant Branch Managers, and Junior Executive Officers covering technical and soft skills
Work from home arrangements were facilitated for employees by providing necessary IT infrastructure and implementing guidelines on remote working
All employee engagement and development programs were migrated to digital platforms, ensuring collaboration and ongoing interaction
The Bank remains committed to the principles of equal opportunity irrespective of gender, age, race, disability or religion in all its HR management processes
All expectant mothers across the Bank were granted special leave from May 01, 2021 onwards, to ensure their safety against the third wave of the pandemic
The Collective Agreement with the Bank’s branch of the Ceylon Bank Employees’ Union (CBEU) was renewed in 2021 for a further 3-year period
Launched “Agri Leasing” facilities at low rentals and flexible payment plans, taking into consideration the seasonal income patterns of farmers and cultivation months to support the agronomy of the country
The Bank has further expanded its portfolio of green buildings to include the Jaffna Branch and the Trincomalee branch
Financial literacy programmes for SMEs and Micros
Donation of 253 fully-equipped IT laboratories to schools and other institutions and partnering the “Smart Schools Project” to introduce a comprehensive digital Learning Management System (LMS) to 65 schools in the country
Donation of critical medical equipment to government hospitals
Remaining compliant with regulatory requirements by maintaining internal capital targets that are more stringent than the regulatory requirements
Timely submission of regulatory reports and press releases
Timely payment of tax payments and furnishing of tax returns
Adhering to the Ministry of Health guidelines and protocols to ensure the safety and wellbeing of customers and employees
Re-launched a dedicated loan scheme namely Diribala Green Development Loan Scheme targeting financing of Solar Power Systems of SMEs/ Business clients to support the Government’s strategy towards promoting the renewable energy sector