Corporate Citizenship

Group 1
Laxmipriya|Mukul|Anish|Rohit|Sameer
Corporate Citizenship
Corporate citizenship is the obligation of a

company to go above and beyond its legal

responsibilities and make a positive impact on

society and the environment. It entails doing

things that provide value for shareholders as

well as other stakeholders, like as the

environment, local communities, suppliers,

workers, and consumers.

Stages of Corporate Citizenship
 Concept of Materiality

• The concept of materiality in corporate citizenship is the idea that businesses should focus their efforts on
tackling the environmental, social, and governance (ESG) issues that are most relevant to their business
operations and have the greatest impact on their stakeholders. Materiality helps firms prioritize ESG
initiatives, allocate resources, and improve their overall sustainability performance.

• Materiality is important when considering banks because of their significant influence on the economy,
society, and environment. Banks are in charge of maintaining the financial assets of their customers, investing
in various economic sectors, and offering loans to both businesses and private individuals. Because of this,
banks must consider the important ESG issues that could affect their financial performance, reputation, and
stakeholder relationships
Key Activities

• Minimal credit exposure to sensitive industries.

• 14,839 Cr. Disbursed for renewable energy projects.

• Plan to achieve net neutrality by 2032.

• Environmental and social impact verification of the

project

• Increase female participation to 25% by 2025.

• Total CSR budget of 736.01 crore for community

projects.
Key Activities
• Axis Bank focuses on for its CSR activities include education, healthcare,
environment sustainability, rural development, and community development

• Scaling down exposure to carbon-intensive sectors

• Our overall diversity stood at 24.6% as of March 2022 while the hiring
diversity was 27.6% 10,673 women were hired during

• Skill development intervention sunder Sustainable Livelihoods Programme

by ABF ~38,000 Youth Trained ~14,000 PwDs Trained

• 99,550+ EMPLOYEES Moved to the Bring‑Your-Own-Device (BYOD)

environment in FY 2021-22

 Waste management initiatives in Axis Bank offices 31.29 tonnes of wet and
dry waste processed from 13 large offices across India 83.12 tonnes of e-
waste responsibly disposed

 Internal energy efficiency initiatives ~ 9745 tCO2e emission avoided

MATERIALITY MATRIX
 Concept of Governance
Parameters HDFC Axis

• The board comprises of 72% independent directors.
Representation
• Three women directors are on the board.
• HDFC Bank's leadership team is responsible for making key decisions • business lines and plays an active role in critical decision-
regarding the bank's operations, policies, and strategies.
• The Asset Liability Committee (ALCO) is a decision-making unit
Decision making responsible for implementing the liquidity and interest rate risk
& leadership management strategy.
Risk Management Group (RMG) at the Bank oversees putting the
Board's risk strategy into action.
• HDFC Bank encourages active participation from all stakeholders, • Operational Risk Management Committee (ORMC), and
Participation including customers, shareholders, employees, and communities.
• The bank has a complaints mechanism to address grievances raised by
communities, investors, shareholders, employees, customers, value
Transparency chain partners, and other third-party employees.
• The bank has formulated a Code of Practices and procedures for fair
disclosures.
• The bank seeks to provide timely and effective solutions to their
Responsiveness problems and queries.
• Board of directors comprises of non-Executive directors and
Board committees.
• Three women directors are on the board.
The Chief Risk Officer (CRO) operates independently from the
making processes that affect the Bank's risk profile.
Additionally, the CRO attends Risk Management Committee
(RMC) meetings without the presence of Bank executives.
• Their vision for 2025 is to transform their engineering
practices and enable back-office processes with automation
for higher efficiency.
• Risk management is governed by the Board
Information Systems Security Committee (ISSC) are
responsible for overseeing risk management.
• Axis Bank has a Whistleblower policy that has been approved
by its Board.
• The bank has created an auditor system that assesses the risk
of significant errors or fraud in the Standalone Financial
Statements.
They then perform audit procedures to address those risks
and gather sufficient and relevant evidence to form their
opinion.
 Concept of Governance
Parameters HDFC
• Employee development: A great deal of emphasis on
employee development and training, recognizing that its
employees are the key to its success.
Consensus
orientation • Continuous improvement: Bank is committed to continuous
improvement and strives to constantly enhance its products
and services, processes, and customer experiences.
• The bank promotes a work culture where everyone feels
included, respected, and valued and has access to equal
opportunity.
Equity Women employee as a percentage of the total is 21.7%
• •
(1,41,579 total workforce) 11% women in senior management
and 14% in junior and middle management.
• HDFC Bank has installed 55 Air Handling Units (AHUs) at their
Kanjurmarg location, and they are planning to replace all
Effectiveness blowers to EC Fan by FY23.
and efficiency • The bank is also implementing an ambitious tree plantation
program under which they have planted over 17 Lakh trees so
far.
• The Bank has constituted a Fraud Monitoring Committee
Accountability exclusively dedicated to the monitoring and following up of
cases of fraud involving amounts of 1 crore and above.
Axis
• Customer focus: Strong emphasis on customer service
and satisfaction and works to understand the evolving
needs and preferences of its customers.
• Innovation: The bank encourages a culture of
innovation and creativity and invests in new
technologies to enhance its products and services.
Ethical and responsible behavior: High standards of
•
ethical and responsible behavior and strives to maintain
the trust and confidence of its stakeholders.
• Axis Bank promotes equity through its employment
practices.
Women employees as a percentage of the total are
24.7%. (85500)
• The goal from top management is to develop top-notch
digital skills that can enhance operational efficiency,
provide excellent customer service, and boost
productivity in the industry.
• The Whistleblower Committee provides an avenue for
stakeholders to raise serious concerns without fear of
retaliation or revenge.
 Expert Interview-
Citizenship for Banks
• Banks need to invest in green energy and provide credit
to traditionally excluded groups.

• They are expected to run campaigns for financial

awareness and inclusion.

• Due to the sensitive nature of data, they must have

ironclad data protection policies.

• They must pledge commitment towards anti-money

laundering, anti-corruption, and anti-bribery initiatives.
Head of CSR, Asia-Pacific for one of
the top 3 American Banks. (name • Being signatories to UN Global Compact and following
withheld on request). GRI reporting standards enhances their reputation.
Conclusion
• Axis Bank and HDFC Bank are two of the best private sector banks in India and both have a strong reputation
for corporate governance.

• In our study, we have found that for banking sector aspects such as Risk Control Measures for fraud and
money laundering, Regulatory compliances & ethical business practices, Customer data privacy & Security,
Transparency, accountability and disclosures to stakeholders, corporate ethics and Governance, Employee
welfare are of material importance. However, different banks prioritize different aspects as per their business
plan.
THANK YOU