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GRI
29
DFCC, as common with many large organisations, interacts with a wide range of institutions and individuals in the course of carrying out its business activities. The most important of these parties are known as its stakeholders. Value creation is a two-way process – on one hand, DFCC delivers value to its stakeholders; on the other hand, it derives value from them. DFCC’s stakeholders include customers, shareholders, employees, business partners, other banks, regulators, communities, the environment, and the Government.
Stakeholder Engagement
The Bank’s stakeholder engagement process is an ongoing process to ensure that the Bank understands stakeholder expectations and remains responsive to its stakeholder concerns.
Identification of Stakeholders
- Identification and categorisation of stakeholders based on key questions:
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- who will contribute to the business?
- who will be impacted by the business?
- who can directly/indirectly influence the business?
Stakeholder Analysis
- Understand the needs, concerns, interests and positions of each stakeholder category
- Decide on the key topics to be addressed
- Evaluate channels to engage with stakeholders
Action Plan
- Decide engagement mechanisms and design value-driven projects/activities
- Decide on frequency of engagement to ensure timely response
- Plan and allocate resources for engagement
- Decide on the key topics to be addressed
- Formulate policies and procedures if necessary
- Implement the action plan
Continuous Dialogue
- Engage and communicate with stakeholders to establish a qualitative dialogue with stakeholders
- Obtain feedback and take further steps when concerns are raised.
The Bank engages with its different stakeholder groups in different ways and using diverse channels. In selecting the appropriate channels, attention is paid to what would have the maximum impact and maximum reach within each stakeholder group.
Shareholders and Investors
Shareholders and investors are the primary providers of capital for the Bank. The Bank maintains regular communication with them to keep them updated on the financial performance.
Reasons for engagement
Key topics for engagement
- General performance of the economy as it affects the banking sector
- Impact of regulations
- Future prospects
- Impact of macro-economic situation and possible future developments including agreement with IMF
- State of moratoriums and concessions
Bank’s response
Provision of the information most relevant to the situation
Engagement Mechanism |
Frequency of Engagement |
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Annually |
Quarterly |
Regularly |
Periodically |
Continuous |
As and when required |
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Annual General Meeting |
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Annual report |
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Quarterly financial statements and press release |
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Announcements through the Colombo Stock Exchange |
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Investor relations meetings |
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Shareholder forums/webinars |
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General correspondence |
Customers
Customers are one of the most important stakeholders of the Bank and are, indeed, its raison d’etre. They include an incredibly diverse range: large corporations, SMEs, micro-enterprises, and individuals from all walks of life. The Bank needs to continually feel the pulse of their needs, tastes, and aspirations. Particularly within the backdrop of the past years’ turbulence, these are constantly changing and evolving. The increasing trend towards digitalisation, which has been an aggressive thrust of the Bank, has done much towards changing patterns of engagement with customers. This has been partly due to the impact of the COVID-19 pandemic and fuel shortages but also due to changing customer profiles, with more customers from the millennial generation
Reasons for engagement
- To provide information on products and services, especially new developments
- To obtain information on customer requirements and preferences
Key topics for engagement
- Customer requirements, tastes and aspirations
- Reactions to product developments and new products
- Degree of disposable income
- Propensity to borrow
- Needs for rescheduling/provision of concessions
Bank’s response
Refer Customer Capital
- Rescheduling/restructuring loans
- Reduction of interest rates
- Identification of priority sectors and customers for lending considering ability to repay and national priorities
- Enhancement of internet/mobile banking
- Appropriate marketing channels especially for the younger generation
Engagement Mechanism |
Frequency of Engagement |
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Annually |
Quarterly |
Regularly |
Periodically |
Continuous |
As and when required |
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Branch network |
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Customer Relationship Officer |
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AI–based digital assistance |
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A dedicated customer care centre |
Employees
Our employees, particularly those at the front lines at the branches, are those who directly interact with the customer. They require technical knowledge in banking and soft skills such as customer service, etiquette, and complaint handling. The reputation of the Bank depends a great deal on them. Ethics and accountability are part of the Bank’s core values. An internal code of conduct within the Bank lays down policies on conflict of interest, insider dealings, unfair business practices, and confidentiality. A whistleblower policy and the Listening Wall allow employees to report actual or suspected malpractices.
Reasons for engagement
- Need for ethical employment
- Reduced purchasing power and threats to standards of living – impact on staff morale
- Need to inform career development opportunities
- Need for employee recognition and well-being
- Need for employee communication, engagement and feedback
Key topics for engagement
- Well-structured performance based incentive schemes
- Diversity, equity and inclusion
- Employee well-being and work-life balance
- Career development opportunities
Bank’s response
Refer Employee Capital
- Performance based incentive and reward schemes
- Appropriate training programmes in both hard and soft skills for career progression
- Effective grievance handling mechanisms
- Salary adjustment based on market surveys
- Promote diversity and inclusion
Engagement Mechanism |
Frequency of Engagement |
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---|---|---|---|---|---|---|
Annually |
Quarterly |
Regularly |
Periodically |
Continuous |
As and when required |
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Proactive engagement by HR |
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Grievance mechanism |
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Performance appraisal |
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Engagement surveys |
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Training programmes |
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WeConnect |
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Staff events |
Business Partners, Suppliers and Service Providers
DFCC has a history of working with a broad spectrum of business partners. With its heritage of being a development bank, it has long experience partnering with institutional creditors to obtain long-term funding. While new long-term funding is in abeyance due to the financial crisis, country rating downgrade, and the consequent dampened demand for credit, this was revived in 2023 with DFCCs accreditation by the Green Climate Fund enabling the financing of climate-friendly products in Sri Lanka. We also interact with many vendors to procure goods and services. Our procurement policy ensures a consistent, efficient, and best-practice approach to ensure that the Bank acquires goods and services transparently, cost-effectively, ethically and in a timely manner. We consider our suppliers to be not merely suppliers but partners in our value-creation process and seek to build long-term and productive relationships with them.
Reasons for engagement
Key topics for engagement
- Maintain dialogue on matters of mutual concern
- Agreements on standards to be maintained in procurement
Bank’s response
Refer Business Partner Capital
- Providing information on a timely and relevant basis
- Listening as well as communicating
- Speedy resolution of any differences
- Engaging in fair and equitable, and sustainable procurement
Engagement Mechanism |
Frequency of Engagement |
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---|---|---|---|---|---|---|
Annually |
Quarterly |
Regularly |
Periodically |
Continuous |
As and when required |
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Supplier registration process |
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Request for proposals |
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Reviews and assessments |
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Communications and meetings |
Government Institutions, Regulatory Bodies and Other Industry Associations
The Bank is of interest to the Government due to its role in economic development and contributing to the national sustainability (especially environmental) agenda. Considering the nature of our organisation and activities, we come under the purview of many regulatory bodies, such as the Central Bank of Sri Lanka, the Colombo Stock Exchange, the Securities and Exchange Commission of Sri Lanka, and certain other Government departments. We ensure compliance with all legal and regulatory requirements by regulatory bodies and government institutions.
Considering the Bank’s wide range of activities, it has been advantageous to maintain membership in several associations and include the best practices and standards issued by these organisations. These include national and regional chambers of commerce and industry, banking and financial bodies, professional associations, and capital market institutions. We have obtained membership in several diverse commercial and professional associations to broaden our reach and effectiveness. These include banking associations, Chambers of Commerce and Industry, financial market-related institutions, and professional bodies. Through these partnerships, we have enhanced our reputation and can draw on their knowledge and skills for our continued growth (Refer Business Partner Capital for details).
Reasons for engagement
Key topics for engagement
Bank’s response
Refer Business Partner Capital
- To implement procedures to manage new regulatory requirements
- Put in place mechanisms for collecting and reviewing new information new information and requirements
Engagement Mechanism |
Frequency of Engagement |
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---|---|---|---|---|---|---|
Annually |
Quarterly |
Regularly |
Periodically |
Continuous |
As and when required |
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Compliance Department |
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Continuous engagements with regulators at senior levels of the Group |
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Timely regulatory reporting |
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Response to queries and reviews carried out |
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On-site and off-site supervision |
Communities
Communities are groups and organisations that impact on and/or are impacted by the Bank’s activities. Examples include local communities (particularly in rural or semi-urban areas), community based organisations, and religious leaders. In order to empower the communities to raise their socio-economic status, the Bank strives to adopt various socially responsive CSR activities.
Reasons for engagement
Key topics for engagement
- Economic conditions especially inflation and interest rates
- Hardships low-income groups are facing
- Other issues facing the SME/Micro-enterprise sector
- Ways in which the Bank can alleviate any hardships
Bank’s response
Refer Social Capital
- Implementing CSR initiatives to help the SME/Micro sector
- Implementing CSR projects
Engagement Mechanism |
Frequency of Engagement |
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---|---|---|---|---|---|---|
Annually |
Quarterly |
Regularly |
Periodically |
Continuous |
As and when required |
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Press releases, conferences, and media briefings |
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Public events |
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Corporate website |
Advocacy Groups
These are groups or organisations that form to support specific social, political, cultural, or environmental issues. This includes community-based organisations, trade unions, NGOs and INGOs. It also includes the media; here, the Bank has a special interest through its press releases and other news items that may appear in the media. Community-based organisations may impact the Bank through their advocacy and ability to influence opinion at local levels. Some more powerful advocacy Groups and NGOs/INGOs may have a broader impact with their ability to influence public opinion and exert pressure on the Government in policy making. These groups and organisations may include those backed by powerful business or political interests
Reasons for engagement
Key topics for engagement
- Issues that impacted the groups they represent
- How these have been impacted by the operating environment
- Dialogues with industry associations on issues of mutual concern even though perceptions may differ
Bank’s response
Refer Social Capital
- Meetings and consultations
Engagement Mechanism |
Frequency of Engagement |
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---|---|---|---|---|---|---|
Annually |
Quarterly |
Regularly |
Periodically |
Continuous |
As and when required |
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Meetings and consultations |