Business Responsibility and Suitability

This assignment discusses the concept of business responsibility and suitability, focusing on the importance of ethics and corporate social responsibility in organizations. It includes a case study of National Australian Bank and Emirates NBD, exploring their background, sustainability reports, and alignment with the United Nations' Sustainable Development Goals. The assignment also examines the sustainability phases of the two companies and their values reflected in their social reports.

Running Head: BUSINESS AND CORPORATION LAW 0
Business Responsibility and
sustainability
5/10/2019

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Question 1: Overview
Ethics is an important part of every business, which requires business managers
to be responsible in their dealings. In the present century, the main motive of
commercial organizations is to earn profits but in addition to this, they also have some
liabilities to the society, environment, and other stakeholders apart from shareholders
merely as they affect working of the organization in a different manner. This is the
reason that every organization, especially companies are engaged in ethical practices
these days and being involved in activities of corporate social responsibility and
sustainability. Two of such companies have been selected for this assignment is
National Australian Bank and Emirates NBD. Discussing the background and basic
information of these companies, this is to state that the National Australian bank is one
of the 4 largest financial institutions in Australia. As the name of the company implies,
it’s a bank and for almost 160 years helping its customers with money. Headquarter of
NAB is situated in Melbourne state of Australia (Samson, Daft & Donnet, 2017). The
company has its operations in other countries also such as New Zealand, United
Kingdom, United States, India and many others. Company has around 30000
employees who are serving to 9,000,000 customers at more than 900 locations across
the globe.
On the other side, Emirates NBD is one of the largest banking groups in terms of
asset size across the Middle East. A public shareholding company was formed in 2007
by the way of a merger between two groups namely Emirates Bank International and
NBD in UAE. Similar to NAB, this company is also engaged in the practices of providing

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funds to the public and provides business financing solutions like a term loan, working
capital, trade finance, and many others. It is the most culturally diversified employers of
the UAE as the same has 9000 employees representing 70 nationalities. Headquarters
of the company is situated at Dubai, UAE. The further bank has its operations in
different countries such as Singapore, Egypt, United Kingdom, Saudi Arabia and many
others (Emiratesnbd.com, 2019a).
Question 2: Nature and Structure of the Sustainability report
Both of these companies publish their Corporate Social Responsibility (CSR)
activities and activities related to sustainability under their sustainability reports. These
reports provide priorities of companies in relation to sustainability, their efforts, and
approach and provide an idea of their success. In this section, sustainability reports
published by both these companies for the financial year 2018 will be considered.
Starting from NAB, this is to state that the main focus of the company is on developing
the trust of its customers. Company has a vision of financial inclusion where the same
help those people who are not able to access affordable and fair financial services.
Another vision is social cohesion where company addresses many social issues such
as family violence, gender inequality, and others. At last, environmental wellbeing also
presented as one of the important issues under this report where the company
addresses biodiversity loss, climate change, and other environmental concerns. In order
to discuss the tone of the report, this is to state that it covers almost every aspect
related to good governance as it provides a manner of working in addition to the efforts
made for various stakeholders. On the different side, Sustainability report of Emirates
NBD seems to be more detailed. It not only consists of efforts in relation to different

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stakeholders but also provides other details such as risk management method and
customer experiences. In conjunction with sustainability company also focused on
ethics and governance issue.
In this manner report of both companies are different. Nevertheless, they both
also have some common factors such as they both provided data in theory as well as in
statistics form which makes the reader easy to understand the related aspects. Further
reports of both companies consist of different segments for different stakeholders. At
last, to say that the language of both reports is not so complicated and companies have
put their efforts to make the presentation as easy as the public can understand the
same.
Question 3: Sustainability Development Goals (SDG)
United Nations developed certain goals that are related to various areas such as
poverty, climate change, clean energy, and many others. These goals are also known
as global goals and the main motive of these goals is to ensure sustainable
development around the globe. NAB and Emirates NBD, both have developed their
focus towards some selected SDG. These goals outline the area, these companies are
most concerned about. As companies do belong to the same industry, some goals are
common in between them. Before moving further towards the discussion of SDG
adopted by these companies, first, it is required to understand which SDG address what
issue. The same can be understood by having a look at the following:-

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(Undp.org, 2019)
Firstly, to discuss SDG applies to NAB, this is to state that as the same is
engaged in the banking practices, it becomes its responsibility to do something for the
betterment of society and in this way goal number 1,3 and 5 seems to be very relevant
for the same. Further, being one of the largest banks of Australia, the same has some
responsibility towards the economy and therefore goal number 8 and 11 are also
important. Sustainability report of this company addresses these goals in addition to
others. This report present target of the company in relation to goal number 1, 3, 5, 7,8,
9, 10, 11, 12, 13, 14 and 16 and efforts made in the past. For instance, the company
provided $22.9bn in environmental financing in the financial year 2018 and supported
SDG 7,9 and 13. This report also addresses those areas where the company’s
performance fell down in comparison to the financial year 2017 such as employee
engagement rating that affected SDG 3 and the number of female employees that
affected SDG 5.

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Emirates NBD also has some responsibility towards its employees and society.
As mentioned above the company provides employment to the citizens of different
nations and in this manner, goal number 3 and 5 seem to be most relevant for the
same. Further SDG 11 is also a relevant one that expects the company to play an active
role in society. All these three goals are mentioned under the sustainability report of the
company. To align with SDG 11, the company has developed a sustainable banking
framework. In 2018, the company reduced paper use by 37% and ensured the
responsible consumption as per SDG 12. In this manner, this company properly
addressed its SDGs but NAB did not address SDG 2 either in explicit or in an implicit
manner.
Question 4: Sustainability Phase
Sustainability of an organization can be measured under six phases. Three of the
writers namely Dunphy, Griffiths, and Benn have prescribed these phases. These
sustainability phases are mentioned as follow:-
 Rejection
 Non Response
 Compliance
 Efficiency
 Proactivity
 Sustaining Organization (Dunphy, Griffiths & Benn, 2007).
These phases reflect poor to excellent values of sustainability where rejection
shows poor and sustaining organization shows outstanding values. After review of the

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sustainability reports issued by both of the selected companies, this is to state that NAB
sits in the fourth phase of sustainability that is efficiency. According to Dunphy, Griffiths,
and Benn, a company seems to be efficient when the same adopt systematic HRM
practices, make focus on reporting structure, avoid the risk involved in the activities
performed by it and improve its engagement into various areas. In other words to say
that a company falls into the category of the fourth phase when the same emphasis on
system design. In the financial year 2018, the company launched a new social media
platform where employees can give their feedback and solve business issues together
with business managers (Nab.com.au, 2018a, 29). In this manner, the company
ensures workforce engagement. The company manages its risks related to society,
government, and the environment. Company has designed a risk management
framework, processes, and policies at business as well as group level. In addition to this
company has systemic HRM where the same adopted practices related to safety,
health, and wellbeing of employees. Company is not so much involved in innovation as
yet it is trying to transform the way in which same uses technology and therefore the
same does not seem to be fit in the frame of proactivity sustainability phase.
The other company Emirates NBD falls into the category of the fifth phase i.e.
proactivity. As per the model given by subjective writers, proactivity phase comes when
an entity does perform more than efficiency. Here the organization’s innovative capacity
is high and the same is proactive and strategic. Emirates NBD seems to be fit in this
category as the same made many efforts in the direction of innovation. Over the next
three years, the company is investing AED 1 billion in digital innovation. Further the
same also won many awards for its innovation such as Arab Innovation Awards 2018

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and Dubai Quality Group’s UAE Innovation Award. Company has internal mapping
process to identify its stakeholders and the same provides them proper opportunity to
share their issue and in this manner ensure stakeholder management
(Emiratesnbd.com, 2018, 16).
Question 5: Values and reflection under Social reports
Both of these companies have their values, which are also reflected in their
sustainability report. Firstly NAB has five core values that are a passion for customers,
being bold, respect for people, win together and doing the right things (Nab.com.au,
2019). Sustainability report of the company reflects these values. As per this report, the
company always ensures to make things simple while dealing with customers.
Company is using the net promoter system to check real-time customer experience.
The company learned a lesson from the findings of the Royal Commission and knew
that where the same gone wrong. Now the company is more engaged in ethical
practices. Company is now offering the financial benefit of offsetting their Farm
Management Deposit (FMD) to its agri customers. The company also stated in the
subjective report that the same will improve service standards and will act in a fairer
manner with customers. The company also keeps a record of the incidents where the
same fails to be responsible as it helps the company to work more good in the future.
Company has the following female representation objectives for 2020

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(Nab.com.au, 2018b, 32)
Except “be bold” value all the four values are properly addressed and detailed
under its sustainability report.
On the different side, customer focus, service excellence, innovation, passion for
performance, integrity, and teamwork are values of Emirates NBD (Emiratesnbd.com,
2019b). In 2008, at Tanfeeth, the company continued to deliver cost-effective solutions
and service excellence for end consumers. The company earned many awards in the
sectors related to its values such as innovation, customer experiences, and corporate
social responsibility. Easy Hub, Google pay, Smart Pass, Wallet card and Mobile first
are the result of the implementation of several new digital products and digital
innovation initiatives. Sustainability report of this company outlines its different values as

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it reflects what success the company achieved in the related area. The same can be
understood by having a look at the following statistics:-
(Emiratesnbd.com, 2018b, 48).
Teamwork and integrity are the topics, which are the value of the company but
are not reflected under its social/sustainability report.
Question 6: Reflection
At the end of the preparation of this report, we have made a group discussion
among the members of our group in order to re-evaluated our findings. I was thinking
that Emirates NBD is more socially responsible in comparison to NBD. I have asked the
opinion of others. All the members seemed to be agreed by this. One of the members of
the group asked the reason of difference where both the companies are engaged in the
same industry and we have concluded that it is a reflection of their management and
because of that only there is the difference between successes of these two companies.
Further, I have asked other members what they think about practices adopted by these
companies regarding environment protection. We have again checked social reports of
these companies and founds that due to the nature of business activities, most of the

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electricity use was towards the use of air conditioner and lighting of premises. Both of
these companies are not using heavy machinery or huge power so the adverse impact
of business activities on the environment is very limited.
NAB faces more competition in compare to Emirates NBD and hence it seems in
its favor to develop more focus on social activities and innovation. This group discussion
helped me in confirming that my conclusion was correct.

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References
Dunphy, D., Griffiths, A & Benn, S. (2007). Organisational Change for Corporate
Sustainability. Oxon: Routledge.
Emiratesnbd.com. (2018a). Sustainability Report – 2018. Retrieved From:
https://www.emiratesnbd.com/en/assets/File/Sustainability_Report_2018_Feb18
_1.pdf
Emiratesnbd.com. (2018b). Sustainability Report – 2018. Retrieved From:
https://www.emiratesnbd.com/en/assets/File/Sustainability_Report_2018_Feb18
_1.pdf
Emiratesnbd.com. (2019a). Meet the leading banking group in the region. Retrieved
From: https://www.emiratesnbd.com/en/about-emirates-nbd/about-us/
Emiratesnbd.com. (2019b). Everyday we make our customers' lives simpler by
providing solutions that help them fulfill their financial aspirations. Retrieved
From: https://www.emiratesnbd.com/en/about-emirates-nbd/our-vision-mission-
values/#tab3
Nab.com.au. (2018a). Sustainability Report 2018. Retrieved From:
https://www.nab.com.au/content/dam/nabrwd/documents/reports/corporate/2018-
sustainability-report.pdf

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Nab.com.au. (2018b). Sustainability Report 2018. Retrieved From:
https://www.nab.com.au/content/dam/nabrwd/documents/reports/corporate/2018-
sustainability-report.pdf
Nab.com.au. (2019). Culture And Community. Retrieved From:
https://www.nab.com.au/about-us/careers/working-at-nab/culture-and-community
Samson, D., Daft, R., L. & Donnet, T. (2017). Fundamentals of Management with
Student Resource Access 12 Months. Australia:; Cengage AU.
Undp.org. (2019). Sustainable Development Goals. Retrieved From:
https://www.undp.org/content/undp/en/home/sustainable-development-goals.html