Case study: How UnionBank creates economic value for its stakeholders
Union Bank of the Philippines (UnionBank) is a publicly listed universal bank and a pioneer of digital banking and financial technology in the Philippines, with a clientele that encompasses retail, middle-market, and corporate customers, as well as major government institutions. UnionBank believes that wealth generation should not be the only focus and that wealth distribution should also be a priority Tweet This!, in its bid for inclusive prosperity.
This case study is based on the 2020 Sustainability Report by UnionBank, 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
UnionBank’s core business of banking aspires to fulfil the promise of a better future where economic growth empowers people and businesses, not least by creating sustainable value for its stakeholders. In order to create economic value for its stakeholders UnionBank took action to:
- create economic value for employees
- create economic value for suppliers
- create economic value for capital providers
- create economic value for governments
- support communities
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With this case study you will see:
- Which are the most important impacts (material issues) UnionBank has identified;
- How UnionBank proceeded with stakeholder engagement, and
- What actions were taken by UnionBank to create economic value for its stakeholders
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What are the material issues the company has identified?
In its 2020 Sustainability Report UnionBank identified a range of material issues, such as environmental compliance, business ethics, diversity and inclusion, information security. Among these, creating economic value for its stakeholders stands out as a key material issue for UnionBank.
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 UnionBank engages with:
To identify and prioritise material topics UnionBank engaged with its stakeholders through the following channels:
| Stakeholder Group | Method of engagement |
| Customers
| · Online channels (Facebook, e-mail, Twitter, Instagram, LinkedIn, Glassdoor, corporate pages) · Customer service hotline · Consumer complaints reported at the Board level |
| Employees | · HR Helpdesk · Assigned account managers per area · Website |
| Regulators, LGUs, Government Agencies
| · Reportorial submissions · Board and Committee Meetings · Financial results briefings |
What actions were taken by UnionBank to create economic value for its stakeholders?
In its 2020 Sustainability Report UnionBank reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- UnionBankers from across UnionBank are the building blocks of UnionBank’s digital transformation strategy, harnessing their talent to power the machinery of its growth. Accordingly, UnionBank has policies and programmes in place for talent attraction and retention, total wellbeing, productivity, recognition, and the potential for innovation. In 2020, UnionBank paid PHP 7.81 billion for employee salaries and benefits.
- Creating economic value for suppliers
- In 2020, UnionBank paid PHP 8.50 billion to its suppliers.
- Creating economic value for capital providers
- In 2020, UnionBank paid PHP 9.85 billion to capital providers.
- Creating economic value for governments
- In 2020, UnionBank paid PHP 5.78 billion to governments (taxes and licenses, PDIC + supervision fees, tax expense).
- Supporting communities
- In 2020, UnionBank spent PHP 0.06 billion in donations to communities.
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 UnionBank, 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.unionbankph.com/sites/default/files/2021-04/2020_UBP_SR_SEC_April_15_opt.pdf
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