Banking Industry Sector - Doc
Added on 2021-01-02
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FinanceLanguages and Culture
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BANKING INDUSTRYSECTOR
Table of ContentsINTRODUCTION...........................................................................................................................3TASK 1............................................................................................................................................3Key challenges which are related to corporate responsibility and sustainability within bankingsector...........................................................................................................................................3TASK 2............................................................................................................................................5Best practices within baking sector with reference to ethical and moral issue...........................5TASK 3............................................................................................................................................8Recommendations for business in banking sector......................................................................8CONCLUSION................................................................................................................................9REFRENCES.................................................................................................................................11
INTRODUCTIONBanking sector are the essential part of economy where the financial assets are investedor leverage in order to produce additional wealth. The core business of banking sector is to holdthe financial assets or funds of customer which they can withdraw anytime. Further, banks arethe financial institution which offer various financial services such as transferring the amount,storing valuable items and extension of credit to the people who require it for different purposes(Lockand and Seele, 2015). For the better understanding report cover following topics such askey challenges which are related to corporate responsibility and sustainability. Emphasis is givenon best practices adopted within the banking sector with reference to ethical and moral issue andrecommendations on the banking sector are covered in this report. TASK 1Key challenges which are related to corporate responsibility and sustainability within bankingsectorCorporate responsibility and sustainability within banking sector helps to keep thebalance between various practices such as social, environment well as economic to meet theexpectations of stakeholders (Ngoand and Nguyen2016). It basically helps the business toencourage the investment of external stakeholder into the business that helps to gain theadvantage financial return as well as leads to positive impact on society. It is essential for theabnaks to restore the trust of audience for which businesses makes effort to bring transparency inthe business and share each and every detail regarding their policies or services with thecustomer. Additionally, most of the top banks of UK such as Bank of England, AmericanExpress and so on have integrated various CSR factor which has provided the advantage ofgrowth opportunity as well as long term sustainable development. It act as a foundation thatassist the business for managing their investment strategy as well as risk significantly. Hence,there are various benefit associated with implementation of corporate responsibility such as ithelps to maintain the healthy relation with the external party that include investor, government ,customer, supplier and so on creating a long term growth opportunity for the business.Regardless of this bank can improver their internal culture and motivate the staff to gain theconfidence over company and its practices. This therefore, help the business to expand andenhance its public image (Izogoand and Ogba, 2015).
The biggest challenges which is faced by baking sector in adopting corporateresponsibility and sustainability is that they lack in paying equal attention in all the three practicethat is economic, social as well as environmental. Like, companies majorly focuses in theinternal staff and consider the social responsibility as an exterior part of business (Feldenkirchen,2017). Thus, to overcome such issue government has made regulation where it is compulsory forthe banking sector to making initiative for CSR activity. Henceforth, such investment attract theinterest of stakeholder because even they want company to invest there fund for the welfare ofsurrounding. Based on the survey there are approximately five hundred banking sector whichmake huge investment that is around $15.2bn within a financial year on various CSR activities tosafeguard the interest of society and external environment (Bhat and Darzi, 2016). In case of Bank of England which is the central and oldest bank of UK have build hugebase of loyal resident because its involvement in CSR activity. Initially, business bear lots ofchallenges related to employee as well as customer retention that was not keeping the profit ofcompany stable. To overcome such challenge respected business has always encouraged thediverse population due to which in 2014 the target of Bank of England was to increase thediversity of BAME (Black, Asian, minority ethnic) people within the workplace. Thus, itgathered the attention as well as loyalty of people. In addition to it there mission is to abolish thegender discrimination due to which they have made the mission that by 2020 company will have35% of senior female manager. Along with that company various charitable institution as well asprogramme such as “Green Ribbon Day” that help their staff to fight against any mental stress oranxiety. Moreover, company share various motivational video with their employee such as“This is me” to improve their mental health. Thus, such practices has strengthen the relation ofbusiness with their employee due to which they remain motivated as well as encouraged to be apart of organisation. Apart from strengthening the relationship of company with employee theyalso took initiative to raise the fund and donate it to the charitable institute like The BrainTumour Charity, Child Bereavement UK, London's Air Ambulance and so on for the welfare ofsociety. Furthermore, Bank of England have remain committed towards environment as well forwhich they have designed programme such as “Greener Bank programme”. Within thisprogramme selected business has made a network of over hundred staff known as greenchampions that helps to adopt environment friendly practice. Company conduct the meetingthrough virtual media that saves the fuel of people, restrict the use of paper as everything is
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