Case study: How Bank Muscat creates economic value for its stakeholders
Bank Muscat is the leading financial institution in Oman with an extensive presence in corporate banking, personal banking, investment banking, Islamic banking, treasury, private banking, and asset management. Bank Muscat believes that governance and accountability are key to achieving sustainable value for all its stakeholders in the long term, incorporating sustainability best practices in its core business activities and corporate culture.
This case study is based on the 2021 Sustainability Report by Bank Muscat, prepared in accordance with the GRI Standards, that can be found at this link. Through all case studies we aim to demonstrate what CSR/ ESG/ sustainability reporting done responsibly means. Essentially, it means: a) identifying a company’s most important impacts on the environment, economy and society, and b) measuring, managing and changing.
Creating win-win situations for its stakeholders in whatever it does and generating sustainable value for all, is a top priority for Bank Muscat. Tweet This! In order to create economic value for its stakeholders Bank Muscat took action to:
- create economic value for employees
- create economic value for shareholders
- create economic value for the state
Subscribe for free and read the rest of this case study
Please subscribe to the SustainCase Newsletter to keep up to date with the latest sustainability news and gain access to over 2000 case studies. These case studies demonstrate how companies are dealing responsibly with their most important impacts, building trust with their stakeholders (Identify > Measure > Manage > Change).
With this case study you will see:
- Which are the most important impacts (material issues) Bank Muscat has identified;
- How Bank Muscat proceeded with stakeholder engagement, and
- What actions were taken by Bank Muscat to create economic value for its stakeholders
Already Subscribed? Type your email below and click submit
What are the material issues the company has identified?
In its 2021 Sustainability Report Bank Muscat identified a range of material issues, such as customer experience and satisfaction, risk management, governance, compliance and ethics, talent attraction, engagement and retention. Among these, creating economic value for its stakeholders stands out as a key material issue for Bank Muscat.
Stakeholder engagement in accordance with the GRI Standards
The Global Reporting Initiative (GRI) defines the Principle of Stakeholder Inclusiveness when identifying material issues (or a company’s most important impacts) as follows:
Stakeholders must be consulted in the process s of identifying a company’s most important impacts and their reasonable expectations and interests must be taken into account. This is an important cornerstone for CSR / sustainability reporting done responsibly.
Key stakeholder groups Bank Muscat engages with:
| Stakeholder Group | Method of engagement |
| Employees | · Annual performance reviews · Regular dialogue and interaction with employees · Training and education programmes · Grievance mechanism |
| Customers | · Call Centre Feedback Management System (FMS) · Company website · Focus groups · Customer networking events for specific customer segments · Branches and access points including ATMs and CDMs · Media and social media channels · Annual report and sustainability report · Other bank publications, including investor presentations |
| Government (Including Regulatory Bodies) | · Government Business Division · Investment in the national economy · Supporting initiatives of national importance |
| Correspondent / Other Banks / International Entities | · Financial Institutions Group (FIG) · Company website and other publications · Roadshows and presentations |
| Shareholders/ Investors
| · Investor Relations Department · Shareholder meetings · Roadshows and presentations · Company website and other publications |
| Local Community/ Non-profit and Other Charitable Organisations
| · The Bank’s dedicated sponsorship function · The Bank’s dedicated CSR and Sustainability Department · Open dialogue with nonprofits and other entities · Media, social media and other publications |
| Local, Regional & International Media | · Media, social media and other publications · Press conferences · Media networking events |
How stakeholder engagement was made to identify material issues
To identify and prioritise material topics Bank Muscat engaged with its stakeholders through computer surveys.
What actions were taken by Bank Muscat to create economic value for its stakeholders?
In its 2021 Sustainability Report Bank Muscat reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In 2021, Bank Muscat paid RO 98,300 thousand for employee wages and benefits.
- Creating economic value for shareholders
- In 2021, Bank Muscat paid RO 107,234 thousand in cash dividends to shareholders.
- Creating economic value for the state
- In 2021, Bank Muscat paid RO 34,346 thousand in tax.
Which GRI Standards and corresponding Sustainable Development Goals (SDGs) have been addressed?
The GRI Standard addressed in this case is: Disclosure 201-1 Direct economic value generated and distributed
Disclosure 201-1 Direct economic value generated and distributed corresponds to:
- Sustainable Development Goal (SDG) 8: Decent Work and Economic Growth
- Targets: 8.1, 8.2
- Sustainable Development Goal (SDG) 9: Industry, Innovation and Infrastructure
- Targets: 9.1, 9.4, 9.5
78% of the world’s 250 largest companies report in accordance with the GRI Standards
SustainCase was primarily created to demonstrate, through case studies, the importance of dealing with a company’s most important impacts in a structured way, with use of the GRI Standards. To show how today’s best-run companies are achieving economic, social and environmental success – and how you can too.
Research by well-recognised institutions is clearly proving that responsible companies can look to the future with optimism.
7 GRI sustainability disclosures get you started
Any size business can start taking sustainability action
GRI, ISEP, CPD Certified Sustainability courses (2-5 days): Live Online or Classroom (venue: London School of Economics)
- Exclusive FBRH template to begin reporting from day one
- Identify your most important impacts on the Environment, Economy and People
- Formulate in group exercises your plan for action. Begin taking solid, focused, all-round sustainability action ASAP.
- Benchmarking methodology to set you on a path of continuous improvement
See upcoming training dates.
References:
This case study is based on published information by Bank Muscat, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original please revert to the following link:
https://www.bankmuscat.com/en/about/csr/Documents/Sustainability_Report__2021_En.pdf
Note to Bank Muscat: With each case study we send out an email requesting a comment on this case study. If you have not received such an email please contact us.