Caribbean, Central Africa, Central America, Central Asia, East Africa, East Asia, Easter Europe, Middle East, North Africa, North America, Oceania, South America, South Asia and Himalayas, Southeast Asia, Southern Africa, West Africa, Western Europe
Themes:
Business Ethics, Ecological Flourishing, Human Empowerment
Bank ABN AMRO has made sustainability a cornerstone of its business. The bank strives to include a concern for social and environmental issues in the decision-making of every strategic business unit. These activities have gained such prominence that a special unit, the Sustainable Development Group was organized to coordinate sustainability work across the organization. The innovativeness of this sustainability mindset has led to numerous activities that are creating a shift in the impact of ABN AMRO on environment and society.
Innovation
ABN AMRO is an international bank with roots stretching back to 1824. With worldwide reach, this institution is innovative in the extent to which it embraces an agenda of sustainability. The bank strives to include a concern for social and environmental issues in the decision-making of every strategic business unit. These activities have gained such prominence that a special unit, the Sustainable Development Group was organized to coordinate sustainability work across the organization. The innovativeness of this sustainability mindset has led to numerous activities that are creating a shift in the impact of ABN AMRO on environment and society.
First are the examples where ABN AMRO encourages other businesses to create benefit in society. Through its lending practices, the bank seeks out and supports business activities that support social or environmental causes. For example, in Chicago, ABN AMRO loaned $1.5 million to fund minority and women-owned businesses. In 2003, the organization adopted the "Equator Principles," an initiative in which the bank provides loans only to projects whose sponsors can demonstrate an ability and willingness to act with social responsibility.
Then there are the numerous ways in which ABN AMRO involves employees to practice exceptional philanthropy. It's not just that the company contributes to numerous causes throughout the world, it is the fact that so many employees are involved, over 15,000 in 2004. Through these efforts the bank involves employees to support ideas like the Akatu project in Brazil, a program that builds environmental awareness, or tutoring for micro-entrepreneurs in France, where employees are paid to help in the community.
In sum, "Because banks are a part of society, we want our activities to reflect the needs and problems of that society," says ABN AMRO manager Lucian Toia. The company not only excels in its efforts to promote exceptional philanthropy, but it also makes social and environmental causes an integral part of its business strategy.
Impact
These efforts are making a difference in India, Sri Lanka, the United States, Argentina – nearly everywhere the bank has a presence. The company invested over 61.1 million Euro (U.S. $73.8 million) in social causes last year, but the real benefits are in the efforts the bank takes to engage all of its stakeholders. For instance, the company weighs each vendor’s “sustainability credentials” as part of its decisions on supplier relationships. It also evaluates sustainability in considering which business activities to fund in its banking efforts. With annual revenues exceeding 19.8 billion Euro (US $23.9 billion), the impacts of sustainability on the bank's decisions are far-reaching. ABN AMRO has also been recognized for its strategic dedication to sustainability through a number of prestigious international awards.
Inspiration
The impetus for a focus on sustainability is a simple proposition. According to the bank's sustainability report, "Banks, by the nature of what they do, are woven into the fabric of the communities and societies where they do business. ABN AMRO is committed to supporting the communities in which we operate and in which our employees live and work by contributing to socially stable, culturally rich and ecologically sustainable living conditions. This commitment not only represents the right thing to do, but also makes sound long-term business sense." Adds Lucian Toia, an ABB AMRO manager, "We are present now in all these countries, but our presence doesn't end tomorrow. We are there to stay there for generations."
The World Inquiry editorial team edited this profile from the original submission of the interviewer or other source. The views expressed do not necessarily represent Case Western Reserve University, the Weatherhead School of Management or the Center for Business as an Agent of World Benefit. More >>
