Case study: How ahli bank creates economic value for its stakeholders
For more than 64 years, ahli bank has contributed significantly to the growth and development of the financial sector in Jordan, developing strategies based on its ambitious vision of leading Jordan’s banking industry towards sustainable socio-economic development. ahli bank seeks to deliver long term value to all its stakeholders in a responsible, balanced and sustainable way that produces prosperity for all Tweet This!, and sets the stage for a new type of conscious capitalism that ahli bank believes has become a moral imperative for humanity in the 21st century.
This case study is based on the 2019 Sustainability Report by ahli bank, 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
ahli bank believes that its success as a financial institution is achieved by continuously pursuing maximum value for its stakeholders. In order to create economic value for its stakeholders ahli bank took action to:
- create economic value for employees
- create economic value for the government
- create economic value for shareholders
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With this case study you will see:
- Which are the most important impacts (material issues) ahli bank has identified;
- How ahli bank proceeded with stakeholder engagement, and
- What actions were taken by ahli bank to create economic value for its stakeholders
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What are the material issues the company has identified?
In its 2019 Sustainability Report ahli bank identified a range of material issues, such as systematic risk management, market presence, governance, transparency, and compliance, customer privacy and data security. Among these, creating economic value for its stakeholders stands out as a key material issue for ahli bank.
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 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 ahli bank engages with:
To identify and prioritise material topics ahli bank engaged with its stakeholders through the following channels:
| Stakeholder Group | Method of engagement |
| Customers | · Branches · ahli online · ahli mobile · Website · Social media (including WhatsApp For Business) · ATMs · Relationship managers · ahlibot · Events and activities · Contact Centre |
| Shareholders | · General assembly meetings · Investor relations function · Investor conferences · Annual reports |
| Environment
| · Facilities for environmentally friendly projects · Supporting projects that promote environmental stewardship · Solar energy farm |
| Regulators and Official Agencies
| · Reports to organisational and regulatory bodies · Compliance with laws and regulations · Regulatory reviews · Best practice corporate governance standards |
| Employees
| · Learning and capacity development programmes · Clear KPIs and periodic performance reviews · Human Resources services · Employee Experience programmes and initiatives · Code of Conduct · Internal meetings · Town hall meetings · Internal committees · Volunteering programmes · Moments that matter · Organisational Culture project |
| Local Community
| · Annual reports · Sustainability reports · Corporate Social Responsibility activities · Training, advisory programmes and workshops |
| Suppliers | · Procurement policy · Invitations to biddings |
What actions were taken by ahli bank to create economic value for its stakeholders?
In its 2019 Sustainability Report ahli bank reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- ahli bank’s workforce is one of its most valuable assets. Accordingly, in 2019, ahli bank paid JOD 40.2 million for employee benefits.
- Creating economic value for the government
- In 2019, ahli bank paid JOD 13.9 million in income tax.
- Creating economic value for shareholders
- In 2019, ahli bank paid JOD 307.8 million in total shareholders’ equity.
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 ahli bank, 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://ahli.com/wp-content/uploads/2021/02/Sustainability-Report-2019.pdf
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