CSR as a core business value

Nine years ago, my first task as executive head at the CEO’s Office at Bank of Valletta was to coordinate efforts relating to the bank’s community involvement. The bank is now synonymous with the largest, most developed and transparent corporate social responsibility programme in Malta.

The interests of a business organisation and the community in which it operates converge- Charles Borg

CSR is now embedded into our mission statement, stressing our commitment to sustainable development while tangibly proving ourselves to be responsible and caring citizens. We have put a CSR ‘road map’ in place, updated annually, and we now publish a CSR report alongside the annual report and financial statements.

Through a structured community programme the bank allocates a defined percentage of its pre-tax profits to be invested in initiatives under seven pillars of activity: arts and culture, heritage, the environment, education, the social aspect, sports, and business and professional associations. For the past couple of years, its annual budget was around €1 million; over the past five years, we have re-invested into the community no less than €4.5 million.

The board of directors is at the helm of the community relations programme and is responsible for policy determination, strategic direction and oversight. Once the policy and guideline parameters are set by the board, we have a management structure that implements the programme – a structure that provides for clear separation of duties and responsibilities.

Good corporate governance is another important aspect related to corporate social responsibility – one that is of direct interest to the shareholders, the effective owners of the company. At BOV, good corporate governance is the responsibility of the board, which is responsible for setting strategy and exercising good oversight and stewardship.

The executive committee reports to the board. This structure provides for efficient decentralisation of selective decision-making and an appropriate system of checks and balances.

Bank of Valletta employs more than 1,500 people. Apart from seeking to be a good employer, offering employees excellent working conditions, we are also committed to promote gender equality, for which we have been officially recognised. We have put in place several flexible working arrangements to enable staff to work in ways that fit personal realities, within the framework of business requirements.

Two-way communication between the bank and the employees is encouraged through various internal communication programmes. We also invest heavily in training and development and promote and encourage staff activities. The environment, perhaps the most high profile area considering the importance of the green agenda in today’s world.

The case for environmental good practice is, ultimately, one for business efficiency and as awareness of the global scale of environmental problems grows, customers are looking for companies to present them with purchasing decisions which can be taken without compromising the future. Our head office represents a substantial investment that makes it an energy-efficient building. We continue to invest in renewable energy sources to generate the power needed for our branches. This year we have put in place 16 new PV installations.

Our green IT strategy addresses the concerns of excessive use of energy. For the past three years, we have embarked on a consolidation exercise of 150 servers as well as virtualisation technologies which greatly reduce power and cooling requirements, while improving efficiencies through an IT modernisation programme.

We have been at the forefront of distributing electronic statements through our internet banking platform. In the past 12 months, this initiative has been extended to credit card and merchant statements. We financially support worthy environmental initiatives, including large-scale afforestation projects and encourage our employees to participate in activities that promote a better environment.

The interests of a business organisation and the community in which it operates converge. CSR is about operating responsibly, which – ultimately – delivers competitive advantage. The key to success lies in adopting an approach where what is good for society is also good for the company and the brand – leading an organisation to think innovatively and, as a result, become more profitable through the implementation of a strategy that puts corporate responsibility as a core business value.

Charles Borg is chief executive officer of Bank of Valletta.