THE ETHICAL MEASURES FACED BY STANDARD CHARTERED BANK

A FUNDAMENTALS OF MANAGEMENT ASSIGNMENT

IMAD SHAHID KHAN│FANINDRA PRADHAN│SALMAN C│ PRATAP A │ MOHIT SM ROLL NO. 27 ROLL NO. 15 ROLL NO.: 36 ROLL No.: 34 ROLL NO.:56

SECTION: A, 1ST SEMESTER, BACHELOR OF BUSINESS MANAGEMENT 2013-2016

Ethics

“a study of concepts of right and wrong conduct”

Corporate Ethics

“a form of applied ethics or professional ethics that examines ethical principles that arise in a business environment. It

applies to all aspects of business conduct and is relevant to the conduct of

individuals and entire organization”

Stanford Encyclopedia of Philosophy

“It takes years to build a brand, and can take only seconds to destroy it.“Peter Sands, Group Chief Executive

“ETHICS” WHAT IT MEANS FOR STANDARD CHARTERED

Standard Chartered’s reputation is critical to its being the world's leading emerging markets bank. The preservation and enhancement of that reputation depends upon their businesses operating to the highest standards of ethical conduct.

CODE OF CONDUCT

“The principles that govern the behaviour of its business and employees”

The Standard Chartered Group sets out a Code of Conduct titled “Leading by Example” which dictates a standard of behaviour expected from

all of those employed. All members of staff, contractors, sub contractors, temporary staff and voluntary workers are bound by the Code.

The Standard Chartered Group faces the following Ethical Queries while undergoing the decision-making process:

1. Does the decision comply with Group standards - the Code of Ethics?

2. Will the decision affect the Organization’s image tomorrow?

3. Could the decision be justified to all the stakeholders?

4. Does it follow in the letter and spirit of Law and Regulations?

GENERAL CODE OF CONDUCT FOR EMPLOYEES

1. Comply with laws, regulations and Group standards 2. Reject bribery and corruption3. Avoid being compromised by gifts and entertainment 4. Speak up5. Combating financial crime6. Respect customer confidentiality 7. Treat customers and co-workers fairly 8. Respect customer confidentiality.9. Do not deal in shares when in possession of inside information10.Responsibilities to our communities and regulators

ETHICAL INTIATIVES TAKEN BY STANDARD CHARTERED

RESPONSIBLE SELLING AND MARKETING

 Standard Chartered has policies and procedures in place to make sure they sell the right products and that complaints are identified and resolved.  

The following data shows the list of complaints and the level of resolution as well as conclusive satisfaction achieved.

2008 2009 2010 2011 2012 2012 vs 2011Complaints per 1000 1.44 0.83 0.53 0.45 0.41 Improved 9%

vs 2011

First Time Resolution 45% 39% 51% 63% 72% Improved 14% vs 2011

Overall Satisfaction 66% 63% 67% 66% 71% Improved 8% vs 2011

Complaint resolution turnaround time < 2 days

61% 59% 68% 76% 83% Improved 9% vs 2011

ENVIRONMENTAL IMPACT

The Standard Chartered Group is committed to reducing the impact that their business and lending has on the environment.

Influences the best practice among the companies financed, investing in renewable energy and low carbon technologies as well as reducing the direct environmental impact of our operations.

UN predicts that carbon trading could be worth US$2 trillion by 2012, with a significant proportion of the carbon ‘credits’ originating in Standard Chartered markets.

FINANCIAL CRIME PREVENTION

Regularly reviewing and amending their policies and procedures so that they remain relevant and up-to-date

Training their staff on how to prevent, detect and react to financial crime.

Checking their financial crime systems and controls to ensure that they work efficiently and effectively.  Working closely with governments, law enforcement agencies, regulators and the banking industry to share

best practice and contribute to ongoing initiatives which combat crime risk.

2009 2010 2011 2012Number of staff completing anti-money laundering (AML) and Sanctions eLearning

42,242 65,698 83,250 81,686

Number of staff completing anti-bribery and corruption eLearning

    74,895 84,548

Countries with specialised systems to monitor transactions for money laundering

19 19 22 39

Alerts produced by the Detica AML system 45,000a month

More than 70,000

a month

More than 60,000

a month

More than 60,000

a month

Number of suspicious money laundering activity reports sent to the authorities

More than 10,000

More than 17,000

More than 17,000

More than 16,000

Staff able to access Detica system to check new customers against sanctioned lists

>16,000 19,672 19,233 18,065

Number of alerts reviewed as part of the Sanctions list screening programme for payment messages

500,000 a month

494,430 a month

More than 600,000

a month

More than 700,000

a month

increased access to those sectors of the population that are either unbanked or under-banked by the mainstream financial sector.

the population at the bottom of the pyramid has an opportunity to build their lives,

fund education and healthcare provision and engage in economic activity.

Over the past three years the Standard Chartered Group has provided $540 million of credit and financial instruments to 63 microfinance institutions in 14 impoverished or developing countries.

Microfinance Institution Loans for Asia and Africa (MILAA), a $93 million risk participation deal, was awarded the Best Structured Finance Deal in Africa by The Banker.

Microfinance for Poor (Sustainable Economic Growth)

Total microfinance funding 2005 2006 2007 2008 2009

Loans extended $24m $70m $170m $385m $540m

Average funding $1m $2m $4m $7m $8m

Number of individuals impacted*

160,000

470,000

1.2m 2.6m 3.6m

Number of microfinance institutions

21 31 45 52 63

WASHE, the Standard Chartered’s Water Sanitation Hygiene Education programme provides easy access to safe water, improves toilet facilities and gives hygiene education to girls. Their staff volunteers help build the facilities and regularly take these classes, along with sessions on computer and financial literacy.

Through Seeing is Believing, the Standard Chartered has partnered with the International Agency for the Prevention of Blindness (IAPB) and leading international eye-care non-governmental organisations to improve access to eye-care.

Currently in India, they have 90 HIV Centres who work with more than 30 partners representing NGOs and �Standard Chartered customers, clients and suppliers to help them train their own peer educators and �tailor the HIV education tools to be relevant and engaging for their audiences.

One of the world's top 10 marathons, the Standard Chartered Mumbai Marathon is not just India's biggest sporting event, but also the biggest charity event in India and the Asian subcontinent.

STANDARD CHARTERED – HERE FOR GOOD – IN INDIA

Some recent Awards for Ethical Measures