Integrating treating stakeholders fairly into our business model
The Treating Stakeholders Fairly initiative will be a key element in our sustainability strategy over the coming years;
- we aim to integrate consideration of stakeholder impacts into all the decisions we make across the business by producing a set of formal questions to assess decision making to be used by local management; placing formal considerations into project planning documents;
- integrating stakeholder considerations into our risk register; introducing more robust measurement of the stakeholder relationship within the balanced scorecard model; and
- ensuring strategic support for stakeholder issues through the formation of a cross functional sustainability steering committee.
We have mapped out our key stakeholder groups and identified mission statements for each group for what we view as a fair relationship with them. We will use this as the basis to assess the impacts our business decisions have on these relationships.
Stakeholder principles
Shareholders
Shareholders, debt funders and analysts. Their satisfaction with management decision-making drives our share price, and their continued support is essential for the future funding of the Company.
In order to treat our investors fairly we will:
- safeguard their assets;
- deliver sustainable long term value to our shareholders;
- we operate in line with corporate governance best practice;
- provide timely and transparent reports to our shareholders on a regular basis;
- utilise a robust process for identifying, evaluating and mitigating risk; and
- provide easy access and clear information about the performance of the business.
Customers
Individuals with whom we have a current loan agreement; also those who have held an agreement in the past (e.g. they have an outstanding complaint) or may hold one in the future (e.g. they have inquired about a loan). Customers provide our revenue stream. Their satisfaction and loyalty are key to the long-term success of the company.
In order to treat our customers fairly we will:
- provide simple, appropriate and transparent financial products and services. We treat customers with respect and are straightforward, always following fair, responsible lending practices;
- give consumers access to simple financial products and services that are designed to meet their needs;
- provide a good quality, friendly, flexible and convenient service;
- keep our customers informed and believe frequent, regular contact with our customers is an integral part of the appeal of our product and services;
- provide customers with clear and balanced information that allows them to properly understand the key features of our products and services and to reach an informed decision as to the appropriateness of the product and their ability to meet the repayment obligations. We will not pressurise a customer to take a higher value of loan than they want or we believe they can afford to repay;
- lend responsibly. We use the close relationship we have with our customers and our knowledge of their circumstances to establish, as far as we can, their ability to repay the loan to term;
- treat customers who have difficulty in meeting contracted repayments with respect and understanding, and are flexible in agreeing revised repayment terms; and
- put measures in place to obtain regular customer feedback to ensure we are adhering to our stated principles, and to manage and act on consumer enquiries.
People
Employees of our company. Our people make up our ‘human capital’ and it is in the long-term best interests of the Company to recruit and retain individuals who are experienced, well trained and engaged, and who will go on to provide future value.
In order to treat our people fairly we will:
- ensure equal opportunity in recruitment and progression regardless of gender, race, age, religion or disability;
- respect internationally recognised human rights;
- we recognise that our employees need to strike an appropriate work/life balance;
- offer fair and competitive remuneration, rewarding the skills, performance and loyalty of our employees;
- through training and appraisal, we allow employees to perform their role well and provide opportunities for personal development and career progression. We will manage and motivate our people in a way that gives them every opportunity to succeed;
- we respect the views of our employees and their opinions. There are systems in place to listen to our workforce;
- provide a safe and healthy working environment and the best possible working conditions; and
- do our best to create a company they can be proud of.
Agents
Work very closely with us to issue loans to our customers and to collect repayments. Agents are the ‘human face’ of our company and so it is essential that they represent our values.
In order to treat our agents fairly we will:
- treat agents fairly and with respect, honouring the Agent Charter;
- help agents develop their business, by providing them with guidance which helps them perform their role well and meet the expectations of customers;
- remunerate agents with a fair incentives model;
- actively promoting personal safety at work;
- manage and lead them in a positive and responsible way;
- seek lasting, mutually beneficial working relationships with agents, based on shared values; and
- do our best to create a company they can be proud to be associated with.
Business Partners
Provide goods and services to us. Suppliers can often act as representatives of our Company and in some cases act as the main point of contact with our stakeholders. It is essential that they uphold the same standards of responsibility and Treating Customers Fairly that we do.
In order to treat our suppliers fairly we will:
- work in a close relationship with our business partners in an environment of mutual trust and respect;
- work with those we do business with to ensure they have business principles consistent with our own;
- use sustainability as criteria when choosing suppliers from high risk industries. We will give clear guidance on what is expected of them; and
- we will always endeavour to pay suppliers promptly and within contracted periods.
Our communities and wider society
The entire population in the areas where we operate. The community grants us a ‘license to operate’ by word-of-mouth reputation, and by educating the community we are able to generate better informed and more financially capable customers. This also includes governments, regulators, trade organisations, NGOs and activists. It is essential to treat these stakeholders fairly, to avoid legal or regulatory breaches and to keep abreast of proposed legislation and minimise the requirement for such legislation.
In order to treat communities fairly we will:
- operate to the highest ethical standards;
- embrace both the letter and spirit of legislation and regulation. We will operate beyond legal compliance at a best practice standard;
- we have open and honest relationships with governments and their agencies, seeking to protect our legitimate interests without partisan involvement. We will contribute to company consultations;
- proactively seek and respond to stakeholder feedback;
- we will give communities access to fair and transparent financial services, and explain our business model clearly and effectively;
- be a responsible corporate citizen and make a positive contribution in the communities in which we operate;
- create jobs/ agencies and pay taxes to help stimulate the local economy; and
- consult with interested groups, engage in community partnerships and invest in communities through time, money and volunteers.
Environment
Our global and local natural environment. Although we have a lower environmental impact than many other multinationals, we aim to take into account our part in diminishing the natural resources on which our Company relies and to attempt to minimise the impact that the rising prices of these resources will have on the business. Environmental management can also play an important part in our reputation.
In order to treat our environment fairly we will:
- seek to understand fully the impact of our activities on the environment and to consider the environment in our decision making. By seeking continuous environmental improvement, we strive to reduce harmful effects on the environment;
- optimise carbon emissions and resource use; and
- we accept responsibility for our indirect environmental impacts and will work with others towards the goal of a sustainable world.
Media
Trade publications, newspapers, television, radio, websites and social media. Media coverage can significantly affect our reputation. Due to a widespread misunderstanding of our business model it is particularly important to proactively communicate with this stakeholder group.
In order to treat the media fairly we will:
- issue clear and transparent communications and answer questions rapidly, openly and honestly;
- have media trained individuals available with whom they can speak easily and on short notice;
- provide thought leadership and become a ‘go to’ business by engaging in studies or information gathering which generates articles; and
- take a pro-active approach to explaining our business model and its role in the community.
Stakeholder engagement
Consultation and dialogue with stakeholders is key to our success.
We believe listening to our stakeholders is an effective way of gathering important input and ideas, anticipating and managing risk, improving decision-making, building consensus among diverse views, strengthening relationships and, ultimately, enhancing corporate reputation. In 2010 we held our inaugural local stakeholder roundtables in each of our markets, attended by stakeholders including financial regulators, non-governmental organisations (‘NGOs’), responsible investment groups, politicians and the media.
Our local stakeholder roundtables were well received in each market, with participants impressed by the open and frank dialogue. In some of our markets we were the first financial institution to host a roundtable of this kind. Key discussion topics from these sessions include our role in responsible lending, our financial literacy programmes, the home credit sector and financial inclusion.
These roundtables enhance our regular engagement which includes an annual central workshop; memberships of business and industry associations; and one-to-one meetings.
Please visit our sustainability microsite to see what our stakeholders say and what we’re doing about it.