China Construction Bank releases its 2010 Corporate Social Responsibility Report

 

Active undertaking of social responsibility

Driving scientific development in banking

China Construction Bank releases its 2010 Corporate Social Responsibility Report

 

Recently, China Construction Bank (“CCB” or “the Bank”) officially released its 2010 Corporate Social Responsibility (“CSR”) Report. This report reveals a strategic model in fulfilling the Bank’s corporate social obligations for the first time. The core of this model is the mission to “undertake comprehensive social responsibility as a corporate citizen”. CCB’s strategic objective is to strive to become a “livelihood promoting bank”, a “low carbon and environmentally friendly bank”, a “public serving bank” and a “sustainable bank”. This model also reflected on how CCB, as a responsible large state majority-owned commercial bank carries out long-term planning and distinctive positioning for undertaking social responsibility at a strategic level. In its endeavours, CCB integrates closely its own development with national economic growth and progress of social civilisation and applies itself in taking a bigger role in driving the coordinated development of society and economy in fostering the construction of a harmonious society.

 

This year’s CSR report marked the fifth consecutive year of the practice. In economic, social and environmental aspects, the report described in detail how the Bank implemented conscientiously a scientific concept of development, carried out voluntarily the State’s macro policies, concerned itself deeply with the interests of various parties, undertook actively its social responsibility and strove to contribute in fostering the harmonious development of society in the previous year.

 

Economic aspect:

Promoting livelihood improvement and serving the general public

The report revealed that, CCB had spent much efforts in adjusting its credit structure, provided greater credit support to 10.5pt and medium enterprises (SMEs), taken the initiative to serve the “Three Rurals” and actively supported new countryside construction and county-level economic development to conscientiously implement the State’s macro-economic policies and support economic development. As at the end of 2010, the balance of its agriculture-related loans stood at RMB770.717 billion, a 39.18% growth from the beginning of the year. Stronger financial support was also offered to SMEs, in which the balance of loans in this area saw a growth of 28.65% from the start of the year to reach RMB1.58522 trillion. The Bank actively responded to the State’s strategy in developing western regions in China and provided greater support to infrastructure construction, cultivation and husbandry as well as water diversion projects in the region. As a result, annual growth rate in the balance of loans in these four areas were 23.08%, 23.81%, 25.82% and 26.01% respectively.

Meanwhile, in order to promote livelihood improvements to achieve business development, CCB also strived to meet the financial needs of urban and rural residents in the areas of housing, employment, education, health care and social security. In 2010, under the Bank’s “Livelihood Oriented” series integrated financial service programmes, a “Culture for the People” scheme was introduced on top of the existing products and services of “Benefiting People through Education”, “Improving the Health of People through Medical Services”, “Social Insurance” and “Environmental Protection for the People” schemes. It also supported and participated fully in pilot projects in constructing indemnificatory housing through housing provident funds. In 2010, the Bank provided a total of RMB12.241 billion of indemnificatory housing commercial mortgage loans and housing provident funds loans to 79,300 medium to low income households. In addition to issuing RMB727 million in education loans and around RMB45.21 billion in personal business start-up loans, it also provided petty credit funds to special groups such as laid-off workers to helping them seek employment possibilities.

As a leading state majority-owned commercial bank, CCB regards the provision of quality services to the general public as one of its main objectives in operation and development of its business. Hence it is highly concerned with the demands of its customers and seeks to understand their banking experience and improve and upgrade its service standards continuously through channels such as “Voice of Customer” surveys and “95533 Customer Service Centre”. The report revealed that, the overall satisfaction of the Bank’s corporate customers remained stable for the fourth consecutive year at 88.3%. In the year, CCB website handled 42,455 cases of customer complaints, giving an effective response rate of 83%. In 2010, an additional 3,853 ATMs and 1,549 self-service banks were set up as a way to provide a wide range of customers with quicker and more convenient financial services. CCB Studios was also established to carry out online exchanges with customers in resolving their problems. The Bank also responded rapidly to the needs of its customers and won unanimous acclaims by launching an iPhone mobile-phone banking system. CCB has also been sensitive to the needs of low-income groups: in addition to waiving petty account management fees for low-income customers, seniors and students, all service fees are also waived for subsistence allowance accounts. Furthermore, handling fees are also waived for disaster donations and remittances as well as funds for earthquake and disaster relief work.

Environmental aspect:

Fulfilling environmental obligations; implementing green finance

In accordance with the State’s policy to conserve energy, reduce emission and to protect the environment, CCB has developed 54 credit approval guidelines basically covering steel and cement with high energy consumption, pollution level and excess production capacity. CCB has set mandatory environmental protection and energy conservation conditions for loan approval. In 2010, the Bank researched the making of green credit marketing guidelines and encouraged industries with energy conservation and emission reduction characteristics. Customers and projects that met the criteria for low-carbon economy, low energy consumption, environmental protection and emission reduction were identified as key customers and given additional support. As at the end of 2010, the Bank’s balance of loans for green credit projects was RMB195.806 billion, an 8.12% growth from a year earlier. In the year, loans withdrawal from high energy consumption, high pollution level and other industries reached RMB104.553 billion.

In support of the national policy for energy conservation and emission reduction and the reduction of energy consumption involved in its daily corporate operations and management, CCB was active in developing its e-banking business and launched various transaction channels including e-banking and mobile phone banking. Customers are encouraged to carry out all kinds of non-cash operations such as transfers, fee payments and financial management through multiple modes of transaction. Low cost, low energy consumption and high efficiency financial services are provided to its customers that enable them to reduce their energy consumption in transportation while helping the Bank to reduce the use of consumable resources in business operations.

In 2010, CCB took part in the “Earth Hour”, which is a global environmental event for the third consecutive year. Through CCB website, mailings and posters, the Bank publicised environmental concepts to its staff and customers. By distributing information such as guidelines on low-carbon living and energy conservation manuals to customers, employees and their family members, the Bank also encouraged them to participate in environmental activities to contribute towards environmental protection and ecology improvement.

Social aspect:

Concerning over the interests of various parties and

supporting social welfare causes

In 2010, while achieving excellent operating results, CCB adhered to the principle of prudent operation, initiated the setting aside of more provisions and established a foothold in long-term sustainable development. Moreover, it concerned itself with the interests of various stakeholders by endeavouring to create higher returns to its shareholders, provide more extensive room for development for its employees and support social welfare causes actively. As a result, it was able to bring forth more positive impacts to the development, progress and prosperity of the society.

The Bank paid income tax and business tax to the State at a total of RMB58.489 billion, an increase of 22.21% from the previous year. For the year, it proposed to distribute a cash dividend of RMB0.2122 per share (including tax) to its shareholders and managed to maintain and increase value for the state-owned equity sustainably. In 2010, the social contribution value per share was RMB1.59, increased by RMB0.17 as compared to the previous year.

Meanwhile, the Bank was adamant in following a people-oriented philosophy and concerned with the development of its staff. Throughout the year, CCB further improved the democratic management by giving full play to the Employee Representative Assembly which fully demonstrates the functions of the Employee Representative Assembly and Labour Union, respecting and protecting employee rights and interests, providing more rooms of development for its employees. It carried out large-scale staff education and training with an investment of RMB743 million. A total of 26,393 training courses were organised. Extensive employee-caring activities aiming at rank and file employees were being conducted. In particular, a survey was conducted to understand the psychological states of young from-line employees to implement specific measures in caring for employees.

In 2010, CCB implemented 22 welfare projects in education, healthcare, poverty relief, culture and art, academic research and environmental protection, involving a total of RMB95.2799 million. In 2010, in face of natural disasters such as the drought in the southern regions, catastrophic earthquake in Yushu and massive mudslide, CCB provided full financial services and arranged donation of a total of RMB53.1315 million, of which RMB29.3915 million were staff contributions. This provided strong support for people in disaster-stricken areas to rebuild their homes.

The CSR report revealed that CCB has carried out public welfare projects in education and poverty alleviation for many years. In particular, in the “CCB Scholarships and Grants for College Students from Ethnic Minorities” Programme, a total of 4,259 ethnic minority needy college students were subsidised. In the “CCB Sponsorship Programme for Impoverished High School Students”, a total of 51,300 student-times had been supported. In the “Sponsorship Programme of Impoverished Mothers of Heroes and Exemplary Workers in China”, subsidies had been provided to 5,425 person-times. To support and drive academic research related to economic recovery against a backdrop of the global financial crisis, CCB had also donated in supporting various academic exchange and cooperation programmes which will provide reference for studying the development of national economic policies.

In recent years, CCB has also encouraged its young employees in continuously launching various volunteer activities by its young employees. In particular, the “Eco-friendly Computers for Children of Migrant Workers”, the “Letters to the Future” to express concern to students in disaster areas, the “Bringing Hope of Life to a Leukaemia Stricken Girl” and the “Asian Games Smile Messengers” programmes launched in 2010 had won the acclaims from all quarters of society and won various volunteer awards.

CCB’s efforts in undertaking social responsibility have won widespread acclaim and recognition from various quarters in society. Last year, CCB won various awards including the “China Red Cross Outstanding Dedication” award by the Red Cross Society of China, the “Best Social Responsible Enterprise 2010” by China News Week and the “Outstanding Social Responsible Chinese Corporation 2010” by Xinhua Net, etc. In the year, CCB was named the “Bank of the Year in China” by The Banker and ranked first in the banking sector in the ”2010 China Most Valuable Brands” by Forbes.

According to Guo Shuqing, Chairman of China Construction Bank, CCB will continue to “pioneer always at the forefront of China’s economic modernisation, strive to be a world-class bank” and uphold its mission of “providing better service to its customers, creating higher value to its shareholders, building up broader career path for its associates and assuming full responsibilities as a corporate citizen” in 2011. While advancing the steady and brisk development of its business, the Bank will further reinforce its corporate citizenship awareness and continuously elevate its concepts of social responsibility so as to make new contributions in fostering the harmonious, stable and healthy development of society.