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In 2004, we set up the Bank’s CSR Fund with a seed capital of Rs. 25 million. The Fund provides the base for much of our CSR work. Every year the Bank adds up to 1% of its post tax profits to the Fund and in 2007 Bank contributed a further Rs. 22 million to this fund. The fund balance as at end of 2007 stood at Rs. 54.139 million. The Bank’s CSR strategy is aimed at fostering Implementing the UN’s Global Compact Programme The Global Compact was launched by the UN in July 2000 and brings together governments, the business sector, civil society and the United Nations to respond to the challenges of globalisation and promote a sustainable and inclusive global economy. Today, thousands of companies globally are working together with other actors in the key areas of human rights, labour, environment and anti-corruption. The Global Compact revolves around 10 key principles in the four key areas and is addressed at businesses around the world. Commercial Bank endorsed the 10 principles in 2002. The Bank, as a leading corporate citizen in Sri Lanka, believes that it must be in the forefront of finding solutions to the challenges posed by globalisation, poverty and social exclusion. By forging creative partnerships with other actors like governments, civil society and the UN, the corporate sector is better placed to respond to contemporary social challenges. The following section shows how the Bank has been mainstreaming these 10 principles into its business practices and strategy in promoting its underlying values: Human Rights Principle II The Bank’s HRM, HRD, Employee Relations and Industrial Relations policies place a premium on ‘human dignity’ as an idea and highlight the pivotal role that human resources play in the growth of an organisation. Further, the Bank’s corporate strategies revolve around these policies. Also, a code on ‘Sexual Harassment’ which was formulated in-line with the collaborative effort of the International Labour Organisation and the Employers Federation of Ceylon, is now in force. Labour Presently there are three Associations/Unions within the Bank, which are represented by both Non-Executive and Executive Staff. The Bank has an IR Policy and deals with the unions on the basis of mutual reciprocity. There are two Collective Agreements signed with the Ceylon Bank Employees Union that are in force from year 2006 till 2009. There is no discrimination on grounds of Union membership/involvement with union activities, when it comes to Career Progression which is done purely on merit. Arrangements were made to revise the Loans and other benefits of staff, with the concurrence of the Unions. Further, the Bank was able to introduce a restructured Pension Scheme with the agreement of the Unions, which was accepted by over 99% of the eligible employees. Further, support and the involvement of the Unions were obtained towards productivity enhancements, process improvements, etc. Also, joint events were organised with the Unions during 2007. Principle IV In the Bank, all labour is voluntary and out of free will. In respect of Non-Executive staff, terms and conditions of employment are negotiated and agreed upon every three years while for executive staff, regular review is being undertaken in-line with market trends. Further, the Bank has a well established Counselling Mechanism and also provisions have been made for staff to bring-in common grievances (without disclosing their identity - through a link in the HR Website) and Individual Grievances (through the link in the HR Café). In respect of outsourced staff, payments are based on market rates. An outsourcing unit has been formed to ensure that the Service Providers pay all statutory and other dues to the outsourced staff on time. Principle V Minimum age limits are specified and in any event it is not less than 18 years. This position has been ensured even with regard to outsourced staff by including the minimum age condition in the agreements with the outsourcing companies. Principle VI The Bank’s practices are constantly being monitored to ensure that we comply with these fundamental labour principles. The Bank is committed to ensuring that the full spectrum of the rights at work are respected and promoted. The Bank has done its utmost to ensure that there is no discrimination in the workplace as a result of sex, ethnicity, disability or any other such ground. The Bank is a part of the ‘Employer Network on Disability’ which enables the differently abled to explore employment opportunities in the private sector. Six persons were provided employment through this initiative in 2006-07. Further, we are redesigning many of our buildings, ATMs and other facilities to enhance access for the differently abled. The Bank’s HRM practices received two key awards last year which reflect among other things an adherence to international labour standards and practices. Three unions operate within the Bank at the moment and their right to associate and collectively bargain is fully protected. The Bank’s existing Collective Bargaining Agreements with the Ceylon Bank Employees Union were signed in 2006 and will continue till 2009. It covers a variety of staff categories and deals with a variety of terms of employment and staff conditions. Union membership does not result in any discrimination within the workplace and promotions are carried out solely according to merit and professional skill. The Bank started an initiative on ‘Workplace Cooperation’ in partnership with the Employers’ Federation of Ceylon and the International Labour Organisation (ILO). The initiative brings together representatives from the three workers’ associations together with the management to promote the joint interests of worker and Company. Environment Principle VIII Principle IX The Bank’s ‘Green’ loans provide concessionary funding to those entrepreneurs who adopt environmentally friendly technologies. Our lending policies ensure that clients have obtained the necessary environmental clearance and where required, an Environmental Impact Assessment of the project has been undertaken. Under the Bank’s CSR Fund four ancient irrigation tanks were rehabilitated over a period of two years with a view to providing water resources in an environmentally sustainable way to farmers in those regions. Our Paper Management systems ensure that waste-paper within the organisation is recycled and reused wherever possible. New procedures are being progressively unveiled that will substantially reduce the use of paper in all our branches. The Bank’s own building projects ensure the use of environmentally friendly technologies wherever possible. Corruption Our procedures for Corporate Governance ensure the scrupulous observance of the highest ethics. This is encapsulated in a Code of Ethics which binds all employees and the Bank takes all measures to ensure that this is observed to the letter. Enhancing Access to Health Care and Education We have also continued to invest in the future of those in university and last year we presented a further 25 scholarships to university students. Each scholarship provides Rs. 2,500 a month for 10 months of the calendar year and recipients are selected to ensure that the most deserving get the scholarships. In the previous year, the Bank presented 100 scholarships to university students. Our Dhaka Branch of the Bangladesh operation sponsored the Dhaka University Job Fair in July 2007. The Job Fair provided a forum for prospective employers from a variety of sectors to meet potential employees. It also provided a forum for students and others to talk to prospective employers and gain a better understanding of opportunities that were available, especially in the private sector. In the health sector, the Bank donated Rs. 1.000 million to the Colombo National Hospital to support the expansion of the ENT (Ear, Nose and Throat) centre. The funds were used to buy emergency trolleys, ward trolleys, computer tables, lecture hall chairs, bed linen, towels, stationery and other equipment for the Centre. In Bangladesh, the Bank provided BDT 1.5 million to the Islamic Eye Hospital for the completion of a Children’s Eye Care Unit. The Unit will enhance the access that disadvantaged children will have to some of the most up to date technology at the Hospital.
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