Introduction
Social responsibility is a strategic incentive for businesses. The starting point is that the company coexists with many stakeholders. Beyond the shareholders, some others financial investors, e.g.: employees; customers; local communities do business with a company. Everyone has specific expectations, and can influence the company’s performance. The company, this way, has the chance to stimulate the multi-stakeholder-oriented strategic management, in order to benefit all those with whom the company has relationships.
The consequence is that CSR could impact the competitiveness of companies and countries. Social responsibility is not an additional activity, it is about the core business of the bank and, generally, of the company. It is an innovative business approach, able to combine profits and the quality of a business in order to benefit all those with whom the firm has relationships and daily interchange.
Italian banks are very active on this issue. The interbank working group – coordinated by ABI for meetings and discussions on corporate social responsibility – now includes banks accounting for 81,4 percent of all bank branches in Italy and 79 percent of assets. Social and environmental reporting is a very strong issue as well: in 2007, banks representing more than 81.8% of total assets and 77% of counters, published a report to the stakeholders.
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What we do
The role that ABI has assumed – together with the staff of the General Manager – is twofold: surveys and studies that interested banks can use for self-aware development of their own scenarios and prospects; and giving its member banks the necessary instruments to integrate social responsibility into their business strategy.
Among the main types of action undertaken by ABI are:
• studies and analysis, examining the various aspects; tools to support interested banks in approaching CSR;
• events/workshops to help build understanding of present and future scenarios among banks and stakeholders;
• presence in multistakeholder fora to networking in national and international contexts. Among others, ABI is a founding member of the Forum for Sustainable Finance; ABI has joined the UN Global Compact; it takes part in the Italian Committee for Microcredit; it takes part in the UNI and ISO works on social responsibility; has joined the European Alliance for CSR, the European network supported by the European Commission.
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Microfinance
“Microfinance” involves the effort for better integration of some customer segments into the business and financial system. The main recipients for microfinance are non-profit organizations and the “third sector”, low-income households, micro-firms, workers with atypical employment contracts, and immigrants. This is an opportunity for banks to act as the promoters of financial inclusion by developing innovative, low-cost banking services. An ABI survey found out that microfinance services are offered by a number of banks that corresponds to 70% of total assets, and by approximately 73% of the branches At the end of 2006, the impact of microfinance on the total services income was 3% in 95% of the cases. In some cases it reached 5%. There are a lot of products and services that can rely on the microfinance label. Among the most offered, current accounts and payment services (49%), followed by financing (31%) and savings services (20%). ABI contributes to a basic financial education project, aimed at educating people on banking.
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Migrant banking
Financial inclusion of immigrants is an increasingly important issue; international remittances, as the financial side to migration, have become one of the most significant items requested for migrants. The number of migrants who are part of financial circuits is growing significantly. Almost 1 and a half million immigrants are financially fully integrated in Italy. Only two years ago they were one million, approximately one third less.
Almost 70% of migrants are financially integrated. Place of residence, length of stay, and type of work affect bank use. Men request financing, while women send bank transfers. In 2006, 4.35 billion Euros were sent via bank transfers from Italy. On average 1,900 Euros per migrant were sent back to the Country of origin. These are the results of the ABI – CeSPI study on the Analysis of financial and insurance needs of immigrants in Italy, that will be presented during the IV CSR Forum (Rome, 27 and 28 January 2009).
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Socially responsible investments
On asset management services, classic financial analysis matches, more and more frequently, with the analysis based on social and environmental variables, aiming to consider performances and perspectives of companies as a broader interpretation. The social responsible funds management (SRI) attracts the attention of many Italian banks that have developed specific SRI products.
SRI retail funds continue to grow in number (+23% in one year, from 437 to 537). The managed assets have exceeded €48 billion, according to Green, social and ethical funds in Europe. 2008 Review made by Vigeo/Siri Company In Italy there are 21 SRI funds that represent 5 percent of the total amount in Europe.
ABI, as a founding member of the multistakeholder Forum for Sustainable Finance (FFS), took part in the development of the “Eurosif Guidelines of Transparency on retail SRI funds”. The initiative target is to improve the transparency of the SRI funds information for clients.
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Next frontiers: ABI – WWF partnership
Social responsibility allows companies to face new challenges, it is a flywheel for competitiveness and innovation, oriented towards dialogue and innovative partnerships among the stakeholders: environment is one of the main challenges. On the environmental side, ABI and WWF (World Wildlife Fund) are starting a partnership in order to work jointly on research activities and promotion of services which would be able to develop concrete models of sustainable development for banks.
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Recent publications
• “Guida critica alla Responsabilità sociale e al governo d’impresa” (A critical guide to social responsibility and corporate governance), Bancaria Editrice, 2005
• “Linee Guida operative sulla Csr in banca. Creare valore ascoltando gli stakeholder: strategie, politiche e strumenti della Csr” (Operational guidelines for CSR in banking. Creating value by listening to the stakeholders: Strategies, policies and instruments). Available also on a web site and in English, Bancaria Editrice, 2005
• “Annuario dei fornitori di servizi della Csr” (CSR service suppliers yearbook). Bancaria Editrice 2005
• “Glossario” (Glossary) of CSR concepts and instruments. Bancaria Editrice 2002
• “Guida alla rendicontazione non finanziaria per le banche” (Guide to non financial reporting for banks), 2006
Coming soon:
• Banks and financial inclusion: survey on the Italian territory, ABI’s study on financial inclusion activities undertaken by Italian banks (II edition);
• The financial needs of immigrants: a demand side study, ABI – CeSPI’s (new study)
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Contacts
ABI CSR Unit: rs@abi.it - Tel. 06-6767570 - 576
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