CSR Guidelines for the Financial Sector - page 27

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Westpac, anAustralian bank attempted to understand and explain how they benefit from better relations with
stakeholders and increased social capital as follows:
(HowValuing community Stakeholders BenefitedanAustralianBank)
Source: Adapted fromWestpac 2006 Stakholder Impact Report, pg 51
ReducingRisk
In today’s world of active citizens participation and the growing influence of NGOs, politicians and business
partners, in addition to the constantly changing regulatory requirements, organizations aremore vulnerable than
ever to reputational, political, and financial risks.
Engagingwith stakeholders to better understand their pain points, concerns, and expectations, is a key factor in risk
evasion andmitigation.
Reality Check
One of our clients identified as a social risk the dissatisfaction of the community on themunicipal
operations of the local municipality. Accordingly, they engaged on their behalf with themunicipality to
address such dissatisfaction. Such engagement mitigated their risk of employee strikes and reduced their
security requirement at time of turmoil.
people value
Financial Value
Supporting
the community
Regulatory and
Operational risk
Reputation
Employee
Engagement
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