Corporate Social Responsibility (CSR) initiatives aim to contribute to sustainable economic development by working with employees, their families, the local community and society at large to improve their lives in ways that are good for business and for development.
Emerging market companies usually tend to focus more on short-term cost savings and revenue gains while companies in developed countries focus more on intangibles such as brand value and reputational issues.
The rise of CSR within the financial services industry has been significant over the past five years and some banks have introduced new guidelines for exercising corporate social responsibility within asset management and credit activity (e.g. Dnb NOR, Norway’s largest banking group).
The increasing focus on CSR initiatives has also been criticized. For example, Milton Friedman and others argue that a corporation’s purpose is to maximize returns to its shareholders and not to society as a whole. Some people perceive CSR as incongruent with the very nature and purpose of business, and indeed a hindrance to free trade. Some writers are questioning the motives for engaging in CSR, including concerns about insincerity and hypocrisy. These critics generally suggest that better governmental and international regulation and enforcement, rather than voluntary measures, are necessary to ensure that companies behave in a socially responsible manner.
At BLOM Bank we, like many CSR proponents, believe that the economy exists to serve human beings and consequently all economic entities have an obligation to society. We are convinced as well that a prosperous community creates a prosperous business.
CSR can improve long-term corporate profitability by enhancing the brand reputation and employee engagement. In fact, CSR plays a role in building the brand value on ethical values while enhancing the bank’s image in the community and improving the perception of the bank among its staff, particularly when staff is involved through payroll giving, fundraising activities and community volunteering. The bank also benefits from CSR by building a reputation for integrity and best practice, which improves the loyalty of its customers.
In response to those who are questioning the sincerity of CSR activities, we would recommend the rating of banks and corporations in Lebanon by specialized CSR international rating agencies and according to some indexes, among them:
- SAM, the Sustainability Asset Management agency which is the rating agency for the Dow Jones sustainable development indexes;
- “Accountability Rating”, which assesses the hundred largest companies in the world in terms of their sustainable development strategy, governance, degree of commitment vis-à-vis stakeholders and social and environmental impact;
- Indexes for assessment of CSR such as the Climate Leaders Index and the Merrill Lynch Carbon Leaders Europe index.
Based on our conviction of the importance of CSR initiatives, the integration of social and environmental considerations into BLOM Bank’s business has increased during the last five years and CSR is now an integral part of our bank’s corporate culture and fundamental business principles. By supporting charitable causes, educational programs, sports events, environmental projects and cultural events, BLOM Bank seeks to help people achieve their goals and to improve the quality of life of all its stakeholders.
BLOM Bank’s annual budget dedicated to CSR programs is growing every year in parallel to the growing needs of our society at large and to the local and international expansion of our bank, which is now present in ten countries in Europe, the Gulf and the Middle East. As BLOM is growing internationally, we strive to maintain a local presence in each market. For this reason, decisions regarding CSR initiatives in each country are put in the hands of members of the local general management who know better where the bank’s CSR activities can make the biggest difference.
BLOM Bank CSR culture starts with an ethics code and training for employees, which aim to help them make ethical decisions when the answers are not clear and thus increasing employee loyalty and pride in the organization. Another aspect of this culture is the implementation of a corporate governance code and rules.
Our main CSR activities are:
- Sports: We are the exclusive Platinum sponsor of the BLOM Beirut Marathon for the fourth year in a row.
- Environment: We are one of the major contributors to the Green Lebanon Book, whose revenues are dedicated to increase forestry and green areas in Lebanon.
- Health: We contribute to many NGOs active in this field such as the Red Cross, the Jaipur Foot Project, and The Children’s Cancer Center in Lebanon, which receives monthly donations from BLOM employees.
- Education: We donate scholarships to various schools and universities.
- Cultural activities: We contribute to many art and musical festivals in Lebanon.
- Contributions to NGOs: among these are Caritas, SKOUN, Islamic Orphans House (Makassed), Sesobel, Lebanese Autism Society, Ajyaluna, Enfants de Lumière, SOS Children Village and Cedars for Care
At BLOM Bank, CSR initiatives have become an integral part of our culture. We want the institution to look like a major player in the welfare of our community, the economic development of the country and enhance, through CSR initiatives, the peace of mind of all our stakeholders.
Gladys Younes is manager of communication & investor relations at BLOM Bank
