Centre name London Business School

your college name

Learner’s name Gihan Abesundara

First Name Last Name
ABE membership number 6 4 2 3 1 1
your ABE membership number – i.e. 123456

Abesundara Mudiyanselage Gihan Devinda Bandara

By ticking this box, I Abesundara

☒ Insert your full name

am confirming that the work I am submitting is my own and I have acknowledged ALL
the sources of reference I have used in constructing my assignment.

Date: 16 11 2020

Day Month Year

Organisation summary – Sampath Bank PLC
Sampath Bank is a Public Limited Liability Company incorporated in Sri Lanka on 10th March 1986 under
the Companies Act No 17 of 1982 and listed in the Colombo Stock Exchange.

Assets and Liabilities (Rs. Mn) Human Capital

• Due to banks and Due to Depositors - 718,301 • Permanent - 3,765
• Gross Loans and Advances - 719,724 • 229 Branches • Fixed Term - 73
• Total Equty- 105,006 • 423 ATMs • Trainee - 258
• Total Liabilitis – 857,345 • Probation -38
• Total Assets – 962,350

• Current Accounts
• Saving Accounts
• Term Deposit Accounts
• Foreign Currency Depositi Accounts
• Loans
• Leasings
• Accounts for professionals
• Pawning
• Sampath Cards
• E Remitance
• Relationship Banking
• Safty Lockers
• Digital Banking

Bank Total Profit Capital Fitch Age

Assets (Rs. (Rs. Bn) Ratio Rating • Minor Savings
Bn) • Senior Savings
Commercial 1,387 17.025 16.146% AA+ Gender
Hatton 1,196.40 15 18.28% AA+
• Male
National
• Female
Sampath 962.4 11.151 18.12% AA-
Nationality
Nations 325.369 3.714 17.96% A+
Trust • Residence
Seylan 516.29 3.6 14.84% A • Non-Residence
Business Status
• Corporate
• Normal
OPEN BOOK EXAM QUESTIONS START ON THE NEXT PAGE
 Question 1 20 Marks

(700 words)

When we looking in to business ethics there are two main approaches.

1. Western Approach
Western approach is based on two main theories, Non-consequentialist theories and consequentialist
theories. Non-consequentialist theories mean that actions are right or wrong based on the underlying
principles being morally right. Consequentialist theories are based on the outcome of the action If the
outcomes are desirable then the actions are seen as morally right, and if the outcomes are not desirable,
the actions are seen as morally wrong. Above two theories can be further divide like this,

Non-Consequentialist Consequentialist

Ethics of Duty Utilitarianism

• Consistency
• Human dignity Egoism
• Universality

Ethics of Right and justice

According to the Immanuel Kant (1724-1804) there are three key tests of whether an action can be
deemed ethical. Consistency means actions can be considered as right if only every one follows it, like my
organization value statement. There can be situations like that our action is right but others will not follow
due to their ego or resistance. Best example is not allowing to use mobile inside the department. We
should treat every one as valuables because we can’t use peoples just to achieve a target, we should give
them nicely and respectfully. And our actions should be acceptable to all human beings without targeting a
special group but there are some situations we have to target special groups like when we want to hire
males to work in outstation branches.
When it comes to ethic of right and justice, we have to treat everyone without considering their
differences but as a Buddhist culture based bank there are resistance from pressure groups if try to recruit
employees from other religion because it can damage our culture but doing that we can easily win the
brand loyalty and we can place them in branches where majority of customers are following that religion.
justice means everyone should get what they deserve with equal treatment even though it is negative or
positive.

Egoism means, an action is morally right if it helps others while also helping yourself and need to
supported by all decision makers. Utilitarianism also called as The Greatest Happiness principal, doing a
CSR is resulting greatest good for the greatest amount of people even though shareholders don’t like it
because it reduces their profits.
 2. Eastern Approach

When we look in to the Eastern Approach theories influencing eastern thought are based on Confucian
theory, alongside religions such as Buddhism, Taoism and Islam. Both can be help to identify what is right
but the different is eastern approach is based deities or teachings as a source of principles which influence
ethical conduct.
According to the Confucianism they are for key virtues influencing approaches to business ethics.

1. Sincerity: We should always be truthful to our customers, management, organization if not we are
not doing the right thing. If we sell some products to customers by telling lies may we can get short-
term wins but eventually we will fail in near future so we have to give them inside out to gain their
trust and brand loyalty.
2. Benevolence: In my organization we always share everyone’s work and help them in good times
and bad times. That helps to develop the team work and trust.
3. Filial piety: In my organization we always respect elders because according Buddhism we should
respect elders to get their good wishes and if we want to be successful, we have to respect elders
because they have experience and they have faced more challenges in the business more than we
do.
4. Propriety: In every situation even, it is a hard time we should always chose to do the right thing
because it makes us strong. From top management to minor staff we should do right things and
should address if there is any wrong doing like frauds and leaking of sensitive information without
considering the position because it helps organization to survive.

When it comes to my organizations we are mostly in to eastern approach because our cultures is based on
Buddhism and we are conducting our business according to our religion.

In some areas we are using western approach when it comes to handle human resources, we are always
providing what they deserve without thinking of their gender, religious or race. And when we doing CSR
project it is the greatest happiness because we can do greater good for more people.
 Question 2 20 Marks

(700 words)

Corporate Social Responsibility (CSR) means Ethical business practices which consider environmental,
economic and social impacts, and take steps to address these impacts beyond minimum legal
requirements.

When it comes to CSR there are many approaches that organisation can take to meet the stakeholders
needs which influenced by the organisation. When we look in to Employees as an organization we have to
concern about their health and safety, Training and personal development, Workplace Climate, Giving
equal opportunities. For Supply chain we have to concern how to support local business, stop bribery and
corruption, prompt payment of bills and selecting business linked to CSR. And when it comes to
community, we have to concern about the charities, Sponsorships, Donations and local projects. And for
Environment we have to concern how to use water, how to manage our waste products and how to use
energy.

According to Archie Carroll’s (1979) model of CSR he depicts four interconnected areas of society’s
expectations of business.

Economic Responsibility: Main responsibility of a business is to make profit for their shareholders and give
salaries to their employees and keep their jobs. Organization will achieve other things if only achieve
economic responsibility and that’s why it is in the base. According to organisation summary under key
competitors we have manged to earn a profit of Rs.11.152 Bn by keeping Capital Ratio of 18.12%.

Legal Responsibility: This means all business should carried about according to the country laws and
regulations. According to organization summary our organization is registered under Companies Act No 17
of 1982 and listed in the Colombo Stock Exchange according to the country law.
Ethical Responsibility: This means society is expecting organizations to do what is right and fair to the
stakeholders even though we have to go some extra miles to do it. When we look in to our branch spread
there are rural area branches and when it comes to recruiting staff for those branches, we are more
focused to get them from those area even though it takes time and cost to train them.

Philanthropic Responsibility: this is not something that society is expecting from an organization.
Organization must have a desire to do this and that is why it is on the top of the pyramid. This includes any
activity that can improve the quality of the lifestyle of society and other stakeholders.

Under Appendix 01 we can see CSR projects under Sampath bank according to different areas.

Economic (shareholder) Model

When we looking in to the Economic (shareholder) model of CSR. This is based on economic theory and is
often linked to Milton Friedman (1912–2006) who published an article in 1970 in The New York Times
which argued that the fundamental responsibility of business is the pursuit of profit and shareholder value.

By using company money to do social work will reduce the profits of shareholders and benefits of
employees and will concern them and they will question all these projects. and by doing it government
becomes depended of private sector and it is a job which government should do to decide what the
societies best interest not the private sector. but doing it we can increase the organization image and
brand loyalty.

Stakeholder model

When we look in to Stakeholder model, this is based on socio-economic theory and was popularized by the
influential work of Edward Freeman in 1984 in his book Strategic Management: A Stakeholder Approach.
In this model, stakeholders mean not only the groups or individuals that have an interest on the business
that also can get affected by the business work.

This theory gives us a good idea to understand our operating environment and relationships and which
stakeholders we should manage closely. According to Appendix 02 we can divide our stakeholder
according to their power and interest and from that we can see we should carry out our business by not
only considering shareholders and there are many can get affected by our doings.

Stakeholder How business can affect them

Shareholder Share price and dividend
Suppliers Unbroken supply chain
Customers Quality products and services
Government Rules and regulations
Employees Job security and salaries

Doing business correctly by concerning our stakeholder relationship is also a CSR. Because it is something
beyond normal practices.
 Question 3 20 Marks

(700 words)

When it comes to normal business everyone’s target is to maximise profit and market share. But with the
triple bottom line theory expands the traditional accounting framework to include two more parts that can
impact the business it is Social and Environment. Most of the companies include this two because they are
planning to move in to a Sustainable growth rather than just focus on profit. These triple bottom lines are
also named as 3P’s.
1. People - Social
2. Planet- Ecological
3. Profit- Economic

Source: http://redlabexperience.com/wp-content/uploads/2019/10/The-triple-ps-e1572515340982.png

People

In here people means employees and wider community that we deal with. In other hand how much an
organization benefit society. A good triple bottom line company would pay fair wages and give good
benefits to their employees to uplift their standards of living.

When it comes to my organisation, we are mainly focus about our employee’s wellbeing and their
knowledge on the business. When we look in to our training details, we can clearly see how much we
concern about our employee’s knowledge and how we share our knowledge with the society.

With this current pandemic situation as a triple bottom line organization we have taken measures to
confirm our employee and customer safety by giving work from home facility to employees without
deducting their salaries and providing mobile and internet banking facilities to customers to do their daily
banking.

When we looking in to Appendix 03 under Legal category, we are paying EPF and ETF to every confirm
team member and for a new recruit we are paying minimum of Rs.15,000/= without other benefits
according to the country law. And we are maintaining an age limit of 20 to get new recruit to stop the child
labour.
Source: Sampath bank Annual Report 2019

Source: Sampath bank Annual Report 2019

Planet

This means organizations should do their business without harming the environment by reducing their
ecological foot print as much as possible. This can be achieved by reducing waste, investing in renewable
energy sources, managing natural resources more efficiency and improving logistics.

When we look in to my organization, we are more concerned about saving trees by using paper recycling,
Cash deposit machines and slip less banking and financing to use hydro power and solar power.

Source: Sampath bank Annual Report 2019

As a triple bottom line organization, we are conducting CSR projects called “wewata Jeewayak” to renovate
lake and tanks in Sri Lanka to help the farmers to do their agriculture business. And we are conducting
another program called “Sampath Green Inventor” for under graduate to give the knowledge and teach
the value of using green products.
Profit

Profit is the main target when it comes to a normal business but to a triple bottom line organization it is
just part of their sustainability program. We can maximise our profits by recycling our waste materials and
use our natural resources effectively.

When we look in to my organization, we have maximised our profits by reducing our cost by using some
products like Slip less banking, ATM and online banking. The main reason to implement these products not
only because we love the nature it is very cost effective and we can save human labour.

Best example for this is even Sampath banks annual report was declared as carbon neutral product for the
fifth consecutive time by “Climate Smart Initiatives (Pvt) Ltd. “

When it comes to our profit, we have been able to achieved Rs.15,498 Bn in year 2019 and we have paid
taxes to government about Rs.4,347 Bn.

By referring Appendix 04 we can get a clear idea about overall triple bottom line process of Sampath bank.
 Question 4 20 Marks

(700 words)

When we are running a business, we have to develop our business without compromising the ability of
future generations to meet their own needs and that is called sustainable development.

Sustainable development is mainly concerned with triple bottom line. People, Planet and profits. When we
are achieving a sustainable development, we have to think about our employees and our customer too.
And what we are giving to the society and how we use natural products effectively.

When it comes to people we have think about their wellbeing and how they provide their basic needs,
health facilities and good life around them and for their future generations. We have to not only to protect
the planet we have to do restoration and repair and mainly we should not destroy it if want to get
resources from it. Profits are the main thing for economic development but when it come to sustainable
development, we must invest environment to achieve something just more than profit for us and our
future generation.
Sustainability is very important because it is the key to a better future. When people are relying on natural
resources for business and daily activities if we ignore sustainability it can lead in to an exhaustion of
natural resources. If we are running our business to achieve sustainable development, we can easily win
the market competition by using it as a marketing tool and it will increase our brand loyalty.

When it comes to organizational context there are four major issues we have to look in to.

1. Consumerism

Consumerism means government or any local authority does not need to acquire someone’s property or
product or service to satisfy basic human needs and disposal of new products or services to acquire new
products or services. This doing has a minimum effect of natural resources and if we reduce consumerism
it will also reduce the economic growth.
When we are in a situation that we are all aware about the environmental impact we can use recycling or
eco-friendly products. When it come to my organization, we had stop deposits slips and introduce Slip less
banking product to minimise the paper use, but end of the day moves in to that product is Consumerism
because we had to kill one product to introduce it.

2. Population growth and poverty

Increasing in the population growth has become main issue to developing and poorest countries. Because
with the growth it is hard to control the poverty and inequity. When it comes to organizational context
even though population is growing poor people don’t have money to do banking because Sri Lanka is a
developing country and people have to spend their all earnings to cover basic human needs. From that we
can create an opportunity to canvas some low interest level loans to them. But when it comes to high end
community their aging population through extended life has become a plus side to banking. Because they
are always trying to open senior saving accounts and pension plans.

3. Recycling and Waste

When it comes to recycling and waste disposal it is very costly and there are no sufficient number of
disposal centres. That is why we have introduced products like Slip Less banking to reduce usage of slips
and it helps to save a huge cost in recycling. When we look in to Appendix 04 under manufactured capital,
we can clearly see that we have taken measures to reduce paper usage by building electronic systems.
According to Appendix 04 under natural capital we were able to save 181,936 KWh by using solar power.
And we have lent loans under green lending scheme to support this matter which worth of Rs.732.4 Mn.

4. Climate Change

Climate change with global warming is a big issue when it comes to sustainable development and it is
affecting the economic growth. When it comes to organizational level, we can minimise the carbon foot
print to help that. According to Appendix 04 we were able to reduce our carbon foot print by 204 points
comparing to year 2018/2019. According to Appendix 03 under Environment there are unsettled
agricultural loans because farmers were unable to get the expected harvest due to dry weather, because of
that banks are losing profits and Banks loan dues are getting high and that is an issue in achieving
sustainable development.
 Question 5 20 Marks

(700 words)

When we look in to Human resource and ethics it is the role and duties of employees as stakeholders in the
organization, considering throughout ethical issues for managing employees in differing cultural contexts.
when we are assessing the opportunities and challenges according to the policies, procedures and actions
there are four main areas that we have to concern.

1. Discrimination

Discrimination means giving preferential or less preferential treatments on the basis of human
characteristics like age, gender, religion, disabilities, nationality and physical appearances rather than
concerning about their job experience or talent.
When it comes to my organization, we are using peoples with special abilities, like deaf people to count
physical cash and find mutilated and forged notes because they have that ability than a normal person. In
the corporate word it is very hard for a lady to stand alone and take decisions of her own because
organizations haven’t given them the chance shine or there are less no of ladies’ employees in the
organization. When we look in to my organization, we are always welcome employees with high talent
without any preferential. From our employee mix from year 2018 to 2019 we can get a clear idea about
that.
But there can be resistance from some groups because it is not is to communicate with deaf people and
culture can be affect when recruiting people from other religious groups.

Source: Sampath bank Annual Report 2019

2. Equal Opportunities

Giving equal opportunities means another way to avoid discrimination. When we are giving equal
opportunities, we can use following approaches,

• Recruitment policies: we can directly use our market campaign to recruit ladies by advertising what
we want and it will give a clear idea from which area we want to recruit and we can standardise
interview questions and it will give an equal opportunity to everyone to compete. But it can be
affected bank’s image when publishing an advertisement only for ladies.
 • Fair job criteria: This is bit challenging for the company because nobody can’t say that I can’t do this
type of work but when it comes to situations like childcare, we have to find the them a suitable
area to work. But to support one team member another one have to sacrifice their comfort and it
can create HR problems.
• Promotion to senior position: This will help us to build our employees trust and motivate them.
Whenever there is a vacancy without going for a market hunt, we can promote our own people.
And if there are talented employees that need a carrier break due to child birth we can give them
paternity leave and join them back.
• Training programmes for discriminated minorities: This is a very hard thing to do because
organizations cannot reasonably be expected to remedy societal discriminations that exclude
certain groups but we can arrange some pre recruitment training programs and it will highlight our
social work and brand loyalty.

3. Employee Privacy

This means the ability that organization must have to control the information held and how it is shared
inside and outside of the organization. We can use CCTV cameras, mobile record to monitor them and we
can minimise frauds and mis use of information but we must keep it under control without harming their
privacy. If they felt that their privacy was harmed it will be great threat because if employees lose the trust
on organization it will be the start of the end.

Mainly we have to give top priorities about their medical records because when we have health and safety
regulation, we have to go with them without leaking information to others if there is an unfit employee to
work.

4. Working Conditions and Fair wages

Providing a good working condition is a must thing because it will increase their productivity and
employees will work very freely and confidently. It is very important when it comes to situation like Corona
pandemic because employees are risking their life to secure their job and the organization, we have to
create a safe work place that they can work even though it is very costly.

According to Appendix 03 under Legal category, we are paying EPF and ETF to every confirm team member
and for a new recruit we are paying minimum of Rs.15,000/= without other benefits according to the
country law. Addition to that giving something more to employees will motivate them to reach to the next
level and with benefits they can raise their life standards.
Reference list

• Crane, A. and Matten, D. (2015), Business Ethics (Fourth Edition). Oxford: Oxford University Press.
• Crowther, D. and Seifi, S. (2015) Corporate Governance and International Business [online].Available
at: http://bookboon.com/en/corporate-governance-and-international-business-ebook[Accessed
on: 02/11/2020]
• Fisher, C., Lovell, A., and Valero-Silva, N. (2013), Business ethics and values. Harlow: Pearson
Education Limited.
• Freeman, R. E. (1984) Strategic Management: A Stakeholder Approach. Boston: Pitman.
• GRI (2015) Global Reporting Initiative Sustainability and Reporting Trends in 2025 [online].Retrieved
from: https://www.globalreporting.org/resourcelibrary/Sustainability-and-Reporting-Trends-in-
2025-2.pdf [Accessed on: 02/11/20]
• https://www.seylan.lk/. 2019. Financial Highlights. [ONLINE] Available at:
https://www.seylan.lk/sites/default/files/Seylan-Bank-PLC-Annual-Report-2019.pdf. [Accessed 10
November 2020].
• hnb.net. 2019. about us. [ONLINE] Available at: https://www.hnb.net/about-the-bank/investor-
relations/reports. [Accessed 10 November 2020].
• Klimsza, L. (2014), Business ethics – Introduction to the ethics of values [online]. Retrieved from:
http://bookboon.com/en/business-ethics-ebook [Accessed on: 01/11/20]
• KPMG (2016) Carrots & Sticks: Global trends in sustainability reporting regulation and
policy[online]. Retrieved from:
https://assets.kpmg.com/content/dam/kpmg/pdf/2016/05/carrotsand-sticks-may-2016.pdf
[Accessed on: 03/11/20]
• Lagan, A. and Moran, B. (2006) 3D Ethics: Implementing workplace values [online]. Retrieved from:
http://3dethics.e-contentmanagement.com/ [Accessed on: 01/11/20]
• Pretzel, D. (2009) A leader’s perspective on ethics [online]. Retrieved from:
https://www.jnj.com/health-and-wellness/a-leaders-perspective-on-ethics [Accessed on:03/11/20]
• www.nationstrust.com. 2019. Financial Highlights. [ONLINE] Available at:
https://www.nationstrust.com/images/pdf/annual-reports/ntb-annual-report-2019.pdf. [Accessed
10 November 2020].
• www.combank.lk. 2019. A Snapshot of the Bank’s Profile. [ONLINE] Available at:
https://www.combank.lk/newweb/images/pdffiles/2020/Commercial_Bank_Annual-Report_2019-
CSE-Version.pdf. [Accessed 10 November 2020].
• www.sampath.lk. 2019. FINANCIAL HIGHLIGHTS. [ONLINE] Available at:
https://www.sampath.lk/images/annual_reports/ar2019.pdf. [Accessed 10 November 2020].
• hnb.net. 2019. about us. [ONLINE] Available at: https://www.hnb.net/about-the-bank/investor-
relations/reports. [Accessed 10 November 2020].
Appendix (optional)
Appendix 01- CSR projects under Sampath Bank
Area
Education for Development
Empowerment of Community
Entrepreneur Development
Environment
Project
• Sampath Bank signed a MOU with Rajarata University
of Sri Lanka to establish a collaborative link between
the two institutions the subject fields of Banking &
Finance.
• Sampath Bank signed a MOU with University of Sri
Jayewardenepura to forge stronger relationship
between industry and academia
• “Sampath Pasala” – Island wide CSR Programme to
facilitate underprivileged schools in Sri Lanka
• “ECG” - Effective Career Guidance Programme at
University of Colombo, University of Peradeniya and
University of Rajarata.
Source:
https://www.sampath.lk/en/sustainability/education-for-
development
• Sampath Bank facilitated Elayapattuwa Divisional
Hospital, Anuradhapura by constructing a ‘Suwa
Piyasa’ building as a part of its ‘Hope for a Life’ CSR
Programme.
• Sampath Bank donated a critically needed ventilator to
the National Hospital of Sri Lanka
• Restoration of Danyawa tank in Medirigiriya,
Hingurakgoda under the “Wewata Jeewayak”
programme.
Source:
https://www.sampath.lk/en/sustainability/empowerment-
of-community
• “Sampath Saviya” Entrepreneurship Development
Programme for the students of Technical College,
Polonnaruwa.
• Sampath Bank conducted an SME Forum in Kandy for
over 170 entrepreneurs as a part of its flagship
‘Sampath Saviya’ Entrepreneurship Development
initiative.
• Sampath Bank in collaborating with National Chamber
of Commerce of Sri Lanka and YouLead successfully
conducted a Youth Entrepreneurship Programme at
Kurunegala.
Source:
https://www.sampath.lk/en/sustainability/entrepreneur-
development
• ‘Sampath Green Day 2018”, a Green Initiative of the
Bank to educate team Sampath and their children on
the importance of environment conservation.
• ‘Sampath Green Inventor’ workshop for
undergraduates of Sri Lanka.
Source:
https://www.sampath.lk/en/sustainability/environment
Appendix 02

Mendelow Matrix

High Power , Low Interest High Power , High Interest

• Government • Shareholders
• Central Bank • Directors
• Top Management
• System Providers
Influence/Powe of Stakeholders

• Highly Competitive Banks

• Foreign Banks

Low Power , Low Interest Low Power , High Interest

• Temporary Staff • Suppliers
• Minor Staff • Low Competitive Banks
• Employees
• Other Customers
• Financial Companies

Interest of Stakeholders
Appendix 03
Pestel Analysis - Sampath Bank
Pestel Market Issue
Political • Political Stability after
presidential election
• Foreign trade policy
• Labor Law
Economic • Interest Rates Cut
• Exchange Rates –
Other currencies was
appreciated against
USD
Social • Population growth
rate
Market Impact Impact to the Organization
• LKR was appreciated • Inward Remittances
after the parliament volume dropped.
election, USD/LKR • Import Customers will book
dropped to 184.50 from their forward rates and
185.50 export customers will hold
till for a further drop.
• Restricted to import • Trade business will be
vehicles for 6 months stopped and one of the
due to corona pandemic bank’s main income source
• Travel banned to will be temporally stop.
foreigners • Foreign income will be lost
to the bank that earns from
currency exchange
• Minimum of Rs.15,000/- • Large amount of money has
should be paid to a to spent to cover the
permanent staff salaries and EPF/ETF
member.
• Should provide EPF/ETF
• Central bank of sri Lanka • Bank Liquidity increased.
reduced SRR to 2% • LKR market liquidity
increased.
• Bank was able to lend more
money to the market.
• EUR, GBP, JPY, AUD • Currency exchange income
cross rates were was increased.
increased against the • Export bill volume was
USD increased.
• Import bill volume was
decreased.
• Sri Lankan growth rate • Due to lack of growth rate
gradually decreasing. banks have to find the new
(Current rate 0.42%- marketing tools to canvas
2020) their deposit products to
the customers
 • Health consciousness • Market growth
– Corvid 19 Pandemic decreased.
• International business
was stopped.
• Cultural barriers – • Barriers enter in to new
Islamic banking market
• High Competition from
Islamic banking products
• Easter Bomb Attack • Lost big number of
Islamic account holders
because Sampath bank
is based on Buddhist
culture.
Technology • Automation of Current • RTGS and SLIPS
Systems Automation
• Technological Changes • New Updates in the
to face the market Core banking Systems
competition
• High Level of • Introduce new products
technological to the market before the
innovations competitor to gain the
market.
Environment • Pressures from NGO’s • Commitment to do no
to do the business harm
according to the law
and protect the
environment
• Banks had to take extra
precautions to protect their
staff and customers from
the pandemic
• Local and International
business was dropped
down due to country lock
down
• Customers were unable to
do face to face banking
• Sampath bank is a Buddhist
culture-based bank,
because of that there is a
barrier to enter the Islamic
banking
• Need to convince the
stakeholders and enter the
Islamic banking to win the
market competition.
• Local fund transfer modes
are getting automated by
banks and every bank have
to bear a huge cost to
automate the systems and
survive in the market.
• Banks need to update their
core banking systems to
provide a smooth service to
customers by adjusting to
the new market products
• Bank have to do innovation
to service in the market by
introducing new products
(Sampath bank introduced
foreign currency deposit
ATM)
• Banks should commit to do
no harm by preventing and
minimizing the
environmentally and
socially detrimental impact
of their portfolios and their
operations.
 • Climate Change – Dry • Unsettle loan debts • Farm loans not being
Weather repaid due to poor crop
yields caused by extremely
dry weather
• Manufacturing debtors
shutting down water –
heavy productions because
of unexpected water
shortages

Legal • Consumer protection • Banks have to use high • Banks should always have
laws to keep privacy secured systems and to keep their customers
and secrecy of the practices financial details private and
customers secret
• Banks are not allowed to
share customer’s financial
details to any other third
party without customers
approval

• Employee Law • EPF/ETF • Banks must provide EPF

and ETF to every
permanent staff member

• Minimum Salary • A Confirmed staff member

should pay a minimum
salary of Rs. 15,000/-
Appendix 04

Triple bottom line – Sampath bank PLC

Source: Sampath bank Annual Report 2019