Case study: How NSB creates economic value for its stakeholders
Established in 1972 through a Parliamentary Act that merged four traditional savings organisations in the country into one establishment, the National Savings Bank (NSB) holds 21.8 million accounts that support the claim of being the most inclusive Bank in Sri Lanka. Creating value for its stakeholders over the short, medium, and long-term is a top priority for NSB. Tweet This!
This case study is based on the 2021 Integrated Annual Report by NSB, 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.
Abstract
NSB seeks to generate, through its operations, sustainable value for its customers, stakeholders, the Sri Lankan economy, and society at large. In order to create economic value for its stakeholders NSB took action to:
- create economic value for employees
- create economic value for depositors
- create economic value for providers of capital
- create economic value for the government
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With this case study you will see:
- Which are the most important impacts (material issues) NSB has identified;
- How NSB proceeded with stakeholder engagement, and
- What actions were taken by NSB to create economic value for its stakeholders
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What are the material issues the company has identified?
In its 2021 Integrated Annual Report NSB identified a range of material issues, such as legal and regulatory compliance, customer service and experience, innovation and agility, skills and capabilities. Among these, creating economic value for its stakeholders stands out as a key material issue for NSB.
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 NSB engages with:
To identify and prioritise material topics NSB engaged with its stakeholders through the following channels:
| Stakeholder Group | Method of engagement |
| Shareholder/Investors | · One to one meetings with representatives from the Ministry of Finance and other investors · NSB’s corporate website serves as a key information platform · Annual and Interim Financial Statements · Communicating long-term focus and strategy through Annual Reports · Participation at industry and investor conferences |
| Customers | · Personal interaction through branches and divisions · Operational issues are communicated through various platforms, including emails, the corporate website and phones · Customer satisfaction ratings are obtained through surveys · Information of products and services are spread through promotional campaigns, the corporate website, mass media, and social media · Other communication channels include: · – Call centres · – Corporate events |
| Employees | · One to one interaction between employees and managers · Intranet and circulars · Quarterly internal newsletters · Staff meetings · Performance reviews and exit interviews · Welfare events and activities · Recognised trade union participations · Grievance handling mechanism |
| Regulators and Government institutions
| · Complying with laws, regulations, circulars, and directives · One to one meetings and interactions with the Government and regulatory representatives · Annual and Interim Financial Statements · Participating in industry and public forums · Responding to statutory examinations carried out by regulatory and Government institutions · Engagement on draft regulations and directions · Partnering on various social programmes |
| Business partners
| · Potential/new supplier introduction · Having regular direct communication with major suppliers · Tender processes · Service level agreement and service delivery · Business/Industry forums · Ongoing site visits · Meetings and presentations · Annual reports · Corporate websites · Training sessions on products and services |
| Society and environment
| · Community interaction in projects relating to education, health, low-carbon economy, and financial inclusion · Corporate website · Social media channels · Advertorials, interviews, flyers, and notices · Annual Reports and Financial statements |
What actions were taken by NSB to create economic value for its stakeholders?
In its 2021 Integrated Annual Report NSB reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In 2021, NSB paid Rs. Mn. 12,970 in personnel costs.
- Creating economic value for depositors
- In 2021, NSB paid Rs. Mn. 76,809 to depositors.
- Creating economic value for providers of capital
- In 2021, NSB paid Rs. Mn. 3,500 to providers of capital.
- Creating economic value for the government
- In 2021, NSB paid Rs. Mn. 12,965 to the government.
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
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References:
This case study is based on published information by NSB, 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.nsb.lk/wp-content/uploads/2022/06/NSB_AR_2021_Interactive-PDF.pdf
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