CRSE108 - Corporate Responsibility & Ethics Report: Bank of Queensland

This report analyzes the corporate social responsibility (CSR) activities and ethical practices of the Bank of Queensland (BOQ), a regional Australian bank. It evaluates the bank's commitment to social wellbeing and environmental sustainability, examining its adherence to legal and ethical standards. The report applies theoretical frameworks such as Caroll’s pyramid of corporate social responsibility and Wartick and Cochrane’s Typology to assess BOQ’s social performance. Findings highlight BOQ's efforts in customer satisfaction, environmental sustainability, community engagement, and positive workplace culture. The report also details BOQ's governance structure and its alignment with Australian Securities Exchange Corporate Governance Council principles. The analysis emphasizes BOQ's initiatives to meet stakeholder expectations through transparent and value-driven practices.

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Corporate Responsibility and Ethics

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Executive Summary
This report analyzes the different activities carried out by the Bank of Queensland, a regional
bank of Australia in relation to corporate social responsibility. It is essential for the companies to
carry out different activities in such a manner that has a significant positive impact towards the
society. The Bank of Queensland has carried out different activities that comply with the law and
protects the interests of the stakeholders in an efficient manner. It is also found out that the bank
complies with all the four responsibilities identified in the Caroll’s social responsibility pyramid
in order to attain increased social performance.

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Table of Contents
Executive Summary.....................................................................................................................................2
Introduction.................................................................................................................................................4
Objectives....................................................................................................................................................4
Methodology...............................................................................................................................................4
Information Analysis...................................................................................................................................5
Caroll’s pyramid of corporate social responsibility.................................................................................5
Wartick and Cochrane’s Typology..........................................................................................................6
Findings and Recommendations..................................................................................................................7
References.................................................................................................................................................11

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Introduction
Corporate social responsibility is an initiative taken by the companies to assess and take
responsibility of the impact of the efforts carried out by the company on social wellbeing and
environment. Companies should carry out different corporate social responsibility efforts in
order to build a positive brand image in the market. This report evaluates the corporate social
responsibility efforts carried out by the Bank of Queensland and its impact on its sustainability. It
also analyze the practices carried out by the bank with different theoretical frameworks related to
corporate social responsibility. Bank of Queensland is founded in the year 1874 and has 190
branches across Australia and deals in provision of different banking products which are easily
understood and support the needs of customers. The products and services are rendered to
individual customers and businesses (Bank of Queensland, 2018).
Objectives
The main of the research is to analyze the governance structure and corporate social
responsibility activities carried out by the bank to meet the expectations of the stakeholders in an
effective manner. For this purpose, different theoretical frameworks have been analyzed in order
to evaluate the gap exists among them.
Methodology
In order to attain the aim and objective of the report, there is a need to collect the information
related to the corporate social responsibility from different sources such as books, scholarly
articles, annual reports and other published data. It facilitates in gathering information related to
different theoretical frameworks in order to apply it in the real situations.

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Information Analysis
Caroll’s pyramid of corporate social responsibility
The Caroll’s pyramid of corporate social responsibility identifies four types of responsibilities
which are required to be undertaken in order to meet out the expectations of the stakeholders of
the company. The foremost responsibility identified in the pyramid is economic responsibilities
as it is the main aim of the business to earn high profits by carrying out the activities in an ethical
manner. In order to carry out the economic responsibility, the bank has identified certain
industries that fall out of risk appetite like online gambling sites, manufacturers of arms that are
associated with criminal organizations and adult industries as the services rendered by such
industries affect the lives and welfare of the people in a negative manner (Nalband and Kelabi,
2014).
Besides this, the other responsibility is legal responsibility which entails that the company has to
complied with the laws and regulations established related to the industry in order to remain
sustainable in the market. In context to Bank of Queensland, the bank is complying with the rules
and regulations related to banking industry in an effective manner to order to remain competitive
in the market. The credit team of the bank complies with the legislation and regulation in order to
manage risk in an effective manner (Ehie, 2016).
In addition to this, ethical responsibility takes into consideration to carry out different activities
which are considered to be morally right and are in the favor of the welfare of the stakeholders
and the whole society. The philanthropic responsibilities are also termed as discretionary
responsibilities that consider the allocation of the resources to different business activities in an
effective manner. The bank evaluates the nature and operation of the business of the borrowers
and the property where it is established in an effective manner (Hossain, Bashar and Noor,

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2017). It is found out that the Bank of Queensland is accomplishing the responsibilities identified
in the Caroll’s pyramid of corporate social responsibility in an effective manner.
Wartick and Cochrane’s Typology
Caroll’s pyramid of corporate social responsibility model has been improvised by Wartick and
Cochrane and named as Corporate Social Performance which entails information related to the
existence of the interactions between principles of social responsibility, social responsiveness
process and the policies required to address the social issues. This typology emphasizes on the
fact that the bank is required to carry out different activities within the guidelines set by the
society. The business has a contract with the society and changes occurred in the society in terms
of norms, lifestyle and so on would results in the change in the policies and programs of the
business (Muafi, 2016).
It is essential for the bank to utilize the moral values and rules in the decision making and
capacity to control corporate acts. Bank of Queensland complies with all its responsibilities
towards the society in an effective manner by providing loans and accepting deposits in an
ethical manner by evaluating the credit worthiness of the borrowers. This typology has also
implies that the firm has to comply with the ethical obligations towards the society in order to
remain competitive and sustain in the market (Elijido-Ten and Tjan, 2014).
This typology is the extension of the Caroll’s pyramid of corporate social responsibility as it is
identified that by accomplishing the economic and legal responsibilities, the company is able to
fulfill the basic requirement of the society. Along with this, society is also expects firms to attain
and fulfill the ethical and philanthropic responsibilities in an effective manner in order to remain
competitive in the business environment. This also results in attracting more number of
stakeholders towards the bank to fulfill their requirements in a cost effective manner and results
in creating value for them (Beddewela and Fairbrass, 2016).

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Findings and Recommendations
CSR activities of BOQ:
Corporate social responsibilities (CSR) activities play essential roles in improving an
organization’s reputation in the community. The CSR activities enable the organizations to make
better engagement with their stakeholders and successful business journey through establishing
the basics such as increasing awareness and exhibiting the importance of CSR’s. In this concern,
it is analyzed that the Bank of Queensland (BOQ) implemented several CSR activities in its
business model to engage with its stakeholders in a transparent and fair way to generate value for
the customers, investors, employees and communities. The management of the bank is
committed to provide better workplace for its employees and provide better financial services to
potential customers along with the CSR activities. Different CSR activities of BOQ for different
initiatives are discussed as below:
Customers: The management of the bank is improving its financial products and services to
satisfy the potential customer. In order to know the customer needs and desires from the financial
institutions, the bank engages customer satisfaction survey. BOQ aims to create an effective
customer experience by putting the customers in command when they and where they want the
financial services. In addition, the management is making effort to provide the accessible,
transparent and affordable financial services in the associated community. The management of
the bank believes in introducing the products and services in straightforward way, which can be
understood by the customer and create exceptional value. In addition, addition the bank is
committed to provide respect and safety of personal information during the operational activities.
The complaints of the customers are resolved with pioneering banking solutions and excellent
promising customer experience (BOQ, 2018). The pioneering or innovative of banking solution
satisfies its customers in an effective manner.

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Environmental sustainability: The bank is committed to use the existing resources in efficient
manner to reduce the environmental footprint. In the operational activities, the bank is using a
number of recycling and energy-saving initiatives to protect the environment from the harmful
impact. It is analyzed that the bank is employing a secure way of paper destruction and recycling
of computer equipments in its all offices. In addition, BOQ is responsive to conserve the water so
that entire taps of the corporate offices are fitted with water flow restrictors (Bank of
Queensland, 2018). Therefore, the management the bank is committed to protect the
environment from its operational activities.
Community: The Bank of Queensland is recognizing the valuable role in the helping the
community by contributing in the public policy. Through the community investment strategy the
bank is assisting youth population of the community across education, health and arts. The bank
supports many of the non-profit organization with the aim of making optimistic impact in the
genuine issues that are affecting to nation’s youth population. The community partners of the
bank are supporting to develop the youth population of the country. Through the community
partnership the bank allows its employees and customers to involve in the community programs.
People and culture: The Bank of Queensland has implemented the approach of creating a
positive work environment, where they can get success in an effective manner. In this concern,
the bank employs a systematic approach which contains different elements such as employee
engagement and retention, diversity, flexibility, inclusion, workplace health and safety, reward
and recognition and investment in developing the people through different training and
development programs. The bank is committed to implement these elements in its employment
policy to establish an attractive and safe working environment for the employee. Management of
the bank is making efforts to provide flexible working environment end rewards for the

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organizational achievements. These efforts are making the bank an attractive place of work in the
financial industry and improving the employee skills in better manner.
Governance structure:
The management of the BOQ is committed to follow the corporate governance and maintain the
corporate governance recommendations and principles created by Australian Securities
Exchange Corporate Governance Council as a basis of increasing the transparency and
credibility of capital market. Consistent with values, collaboration, impact and integrity the
management of BOQ has developed and implemented several policies that are constant with
CGPR. The elements of corporate governance adopted by BOQ are as below:
 Constitution of the bank: The bank was established to provide financial services in the
community with applying appropriate rules and regulations imposed by the government.
 Corporate governance statement: The board charter of the bank sets out key principles of
corporate governance.
 Board charter: This charter contains entire corporate governance standard adopted by
BOQ.
 Policy for independence of bank’s directors: It contains a set of methods in which the
board evaluates independence for directors with St Andrew’s.
 Board renewal policy and performance review: This corporate governance sets out the
policies for the guidelines of directors to review the performance of the committee based
on “St Andrew’s group board performance”.
 Governance and nomination committee charter: Through this charter the bank committee
grants suggestions to the management about succession planning and matters related to
corporate governance.

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 Audit commission charter: The committee of the bank provides suggestions to the
management about accuracy of internal and external audit processes and financial
statements of the bank.
 Risk committee charter: With the help of this charter the bank committee provides
suggestions to the management on risk profile and risk management strategy.
 Human resource and remuneration committee charter: The bank committee provides the
information and suggestions about the remuneration matters and bank’s human resources.
Along with this the bank contains different charter such as auditor policy, St Andrew’s insurance
and life insurance, diversity policy, code of conduct, disclosure policy of market, security trading
policy and whistleblower policy (BOQ, 2018). Based on these initiatives the bank is operating its
financial and CSR activities in authoritative manner.
Based on the CSR activities and corporate governance, it is analyzed that the bank is fully
devoted to provide its financial services to develop the nation’s community in an effective
manner. The CSR activities had made this bank most loved bank of Australia. In addition, the
corporate governance structure is also making it an attractive for different stakeholders.
However, it is recommended to BOQ to include in more social programs to improve further
market reputation in Australia.

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References
Bank of Queensland (2018) Environmental sustainability. [Online]. Available at:
https://www.boq.com.au/Shareholder-centre/sustainability/sustainability-environment (Accessed:
30 May 2018).
Beddewela, E. and Fairbrass, J. (2016) Seeking legitimacy through CSR: Institutional pressures
and corporate responses of multinationals in Sri Lanka. Journal of business ethics, 136(3),
pp.503-522.
BOQ (2018) Corporate Governance. [Online]. Available at:
https://www.boq.com.au/About-us/corporate-governance (Accessed: 30 May 2018).
BOQ (2018) Sustainability. [Online]. Available at:
https://www.boq.com.au/Shareholder-centre/sustainability (Accessed: 30 May 2018).
Ehie, I.C. (2016) Examining the corporate social responsibility orientation in developing
countries: an empirical investigation of the Carroll's CSR pyramid. International Journal of
Business Governance and Ethics, 11(1), pp.1-20.
Elijido-Ten, E.O. and Tjan, Y. (2014) Sustainability Balanced Scorecard Disclosures and
Corporate Commitment to Sustainability: An Australian Study. Issues In Social And
Environmental Accounting, 8(4), pp.185-208.
Hossain, A., Bashar, K.A. and Noor, B. (2017) The Impact of Corporate Social Responsibility
(CSR) on National and International Corporations Prevailing in Bangladesh: A Comparison of
CSR on the Basis of Carroll’s Pyramid. Journal of Investment and Management, 6(1), pp.6-12.
Muafi, M. (2016) Analyzing fit in CSR strategy research in state-owned enterprises: Indonesia
context. Journal of Industrial Engineering and Management, 9(1), pp.179-206.

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Nalband, N.A. and Kelabi, S.A. (2014) Redesigning Carroll’s CSR pyramid model. Journal of
Advanced Management Science, 2(3).
Bank of Queensland. (2018) Company Overview. [Online]. Available at:
https://www.boq.com.au/About-us/company-overview (Accessed: 30 May 2018).