Assignment: CSR of Bank Al Habib

Submitted To: Dr. Kashif Rashid.

Submitted By: Mehran Mumtaz.

Registration Number: SP17/RO4/003

VISION STATEMENT:

TO BE OUR CUSTOMERS' MOST CONVENIENT AND TRUSTED BANK.

MISSION STATEMENT

TO MAKE BANKING SAFE, SIMPLE, AND PLEASANT.

Corporate Social responsibility has gained greater importance in todays world. In corporate
social responsibility companies take care of their business goals and their societal responsibilities
as well. In developing countries like Pakistan CSR has much importance because the
governments are poor and investment in social needs of people like food, Health and educational
are only marginal. In Pakistan, social responsibilities of companies were neglected in the past but
with the passage of time corporate sector is also taking interest in developing CSR.

Bank Al Habib is fully committed to the concept of Corporate Social Responsibility and
fulfills this responsibility by engaging in a wide range of activities which include:

Corporate philanthropy amounting to Rs. 184.9 million by way of donations during the
year for social and educational development and welfare of people.
Energy conservation, environmental protection, and occupational safety and health by
restricting unnecessary lighting, implementing tobacco control law and No Smoking
Zone, and providing a safe and healthy work environment.
Business ethics and anti-corruption measures, requiring all staff members to comply with
the Banks Code of Conduct.
Consumer protection measures, requiring disclosure of the schedule of charges and terms
and conditions that apply to the Banks products and services.
 Amicable staff relations, recognition of merit and performance, and on-going
opportunities for learning and growth of staff, both on-the-job and through formal
training programs.
Employment through a transparent procedure, without discrimination on the basis of
religion, caste, language, etc., including employment of special persons.
Expansion of the Banks branch network to rural areas, which helps in rural development.

Following is the Donations of Bank Al Habib for year 2016:

Health Sector:
Child life Foundation

Friends of Punjab Institute of Cardiology

Habib Medical Trust.

Husaini Hematology and Oncology Trust.

Patients Aid Foundation.

Sindh Institute of urology and transplantation (SIUT).

The Health Foundation.

Education Sector:
Habib Education Trust

Developments in Literacy.

The Citizens Foundation.

Other Contributions:
Habib Poor Fund.
Rahmatbai Habib Food & Clothing Trust.

Rahmatbai Habib Widows & Orphans Trust.

Al-sayyeda benevolent trust.

Bank Al Habib Staff Benefit Trust

GCU Endowment Fund Trust.

Risk Management:
In order to comply with SBPs guidelines on risk management, the Bank has established a
separate Risk Management Division, including a Middle Office that independently monitors and
analyses the risks inherent in Treasury operations.

Credit risk is managed through the credit policies approved by the Board
Market risk is managed through the market risk policy approved by the Board
Operational risk is managed through the audit policy and the operational risk policy
approved by the Board, along with the fraud prevention policy

Conclusion:

By taking note of the companys profile we can clearly see that company is following a
integrative theory, because company is trying to take care of the interest of all the stake holders
and the company is not just working for profit maximizing but also investing in different
schemes like education health and women empowerment in the past year. The companys
income before tax was Rs 13,163,987 in year 2016 which resulted more profit earned in 2016
than 2015 the larger the profit the more chances of company disclosing CSR activities (Ince and
Owers 2012)(AJALA Oladayo Ayorinde, AMUDA Toyin 2012). in a result company donated
greater amount as compared to the previous year. The company also have Non-Executive and
independent directors who safeguard the rights of all stakeholders (Sharif and Rashid 2013).
References:
Bank Al Habib Annual Report 2016.

Companys Official webpage.

Sharif, Mehmoona, and Kashif Rashid. 2013. Corporate Governance and Corporate Social
Responsibility (CSR) Reporting: An Empirical Evidence from Commercial Banks (CB) of
Pakistan. Quality & Quantity: 250121. http://link.springer.com/10.1007/s11135-013-
9903-8.

Majeed, Sadia, Tariq Aziz, and Saba Saleem. 2015. The Effect of Corporate Governance
Elements on Corporate Social Responsibility (CSR) Disclosure: An Empirical Evidence
from Listed Companies at KSE Pakistan. International Journal of Financial Studies 3(4):
53056. http://www.mdpi.com/2227-7072/3/4/530.