ANNUAL REPORT 2020

Stakeholders

GRI 102-40, 102-42

In this Report, stakeholders are defined as individuals or entities who are separate from the Bank but are materially impacted by its activities and who are also able to impact the Bank by their actions or opinions.

Key stakeholder groups

Emerging trends in the operating environment (refer Operating Context on page 27 for details) affect the Bank’s ability to deliver value to stakeholders and, in turn, to derive value from them in a manner that is sustainable in the long term. For this reason, the Bank finds it imperative to identify stakeholder groups that are important to it and to understand why the Bank is important to them. Such information supports the formulation of strategy that is fit for the future and the Bank’s continued creation of value over time.

While the range of stakeholders who are able to directly or indirectly impact performance is extensive, by categorising key stakeholder groups as outlined above, the Bank is able to effectively manage its interactions with those that matter most to its operations.

GRI 102-43

Stakeholder engagement process

The Bank’s stakeholder engagement process follows a cyclic pattern as outlined below. This ongoing process ensures that the Bank remains relevant and responsive to stakeholder concerns.

Stakeholder engagement method

Even though every point of stakeholder contact remains a shared responsibility across the Bank, formal mechanisms for stakeholder engagement continue to be in place. These mechanisms and the Bank’s understanding of stakeholder aspirations are outlined in this section.

With the Bank deriving value from stakeholder groups (just as much as it delivers value to them), each of these groups is considered a resource. As a result, these stakeholder groups are discussed as forms of “capital” within this Report (refer Value Creation Model on page 24).

GRI 102-44

Investors

Characterised by funding support, loyalty, influence, networks and the associated relationships, the investor capital contributes towards the Bank’s ability to explore business opportunities and absorb unanticipated losses. In return, the Bank pledges to provide reasonable returns for the risks assumed.

Subjects of engagement Engagement
Principal means of engagement Frequency
  • Financial performance
  • Strategy
  • Governance
  • Shareholder returns
  • Business expansion plans
  • Risk management
  • Sustainable growth
General Assembly Meeting Annually
Extraordinary General Meetings As required
Annual report Annually
Interim financial statements Quarterly
Investor road shows and presentations As required
Investor disclosures Quarterly
Press conferences and releases As required
Announcements made on the
Saudi Stock Exchange
As required
Corporate website Continuous
One-to-one discussions As required
Feedback surveys As required

Customers

Source of revenue, diversity, loyalty, trust etc., and associated relationships are typical of the customer capital which contributes towards the Bank’s financial sustenance and its ability to grow prudently over time. In return the Bank pledges to be relevant and proactive, being where the customer is when they need it.

Subjects of engagement Engagement
Principal means of engagement Frequency
  • Banking hours
  • Customer security and privacy
  • Service quality
  • Financial inclusion
  • Affordability of services
    and convenience
  • Grievance handling mechanism
  • Financial education and literacy
  • Financial support for
    revival of business
  • Specialised needs
Branches As required
Service centres Continuous
ATM network Continuous
Online banking Continuous
Corporate website Continuous
Print and electronic media As required
Social media Continuous
Customer satisfaction surveys As required
Customer visits As required
Net promoter score As required

GRI 102-44

Business partners

Typically characterised by critical supplies and services, pricing, reliability, ethical practices etc., and the associated relationships, the business partner capital contributes towards the Bank’s ability to provide sustainable products and services and maintain operational excellence at all times. In return the Bank ensures that its partnerships with business partners are mutually beneficial, professional, transparent, and fair, seeking to influence them for good.

Subjects of engagement Engagement
Principal means of engagement Frequency
  • Contractual performance
  • Future business opportunities
  • Maintaining healthy relationships
  • Timely settlement of dues
  • Ease of working
  • Growth potential
  • Collaboration for new technological advances in the financial sector
Supplier relationship management As required
On-site visits and meetings As required

Employees

Know-how, skills, capacity to innovate, loyalty, diversity, morale etc., and the associated relationships are what the employee capital is generally characterised by. It contributes towards the Bank’s ability to provide customers with the kind of experience they expect from one of the largest Islamic banks in the world. In return the Bank ensures that its people are provided with a safe and enabling environment with the capacity for skills and career development, meaningful employment, and a good work-life balance.

Subjects of engagement Engagement
Principal means of engagement Frequency
  • Performance standards
  • Career planning
  • Training and development
  • Corporate values
  • Corporate strategies and plans
  • Trends in banking
  • Saudisation
  • Remuneration and benefits
  • CSR programmes
Induction programme Once
Key performance indicators Continuous
Career development guidance Annually
Internal communications As required
Staff societies As required
Volunteerism As required
Employee satisfaction survey As required

GRI 102-44

Government authorities and regulators

Characterised, among other aspects, by regulation of sound banking systems, control of risks to prevent socio-economic problems, supervision of competition in the market, provision of banking licenses etc., and the associated relationships this capital supports the Bank to grow sustainably, while providing robust products and services. In return, the Bank contributes towards financial sector stability, economic growth, financial literacy, and financial inclusion.

Subjects of engagement Engagement
Principal means of engagement Frequency
  • Financial performance
  • Strategy
  • Governance
  • Shareholder returns
  • Business expansion plans
  • Risk management
  • Sustainable growth
  • Saudisation
  • Employment opportunities
  • Microfinance and SME
Consultations As required
Relationship building meetings As required
Informal briefings and communications As required
General Assembly Meeting Annually
Extraordinary General Meetings As required
Annual report Annually
Interim financial statements Quarterly
Announcements made on the Saudi Stock Exchange As required

Social and environment

Sound social and environmental stewardship, public trust, access to public infrastructure and natural resources etc., and the associated relationships are some of the characteristics of this capital. The social and environmental capital provides the Bank with a “license to operate” and grow sustainably over time. In return the Bank ensures that the communities within which it operates are nurtured and that the natural environment is protected for future generations.

Subjects of engagement Engagement
Principal means of engagement Frequency
  • Financial inclusion
  • Affordable financing for
    disadvantaged segments
  • Community empowerment
  • Assistance for disadvantaged and vulnerable groups
  • Saudisation
  • Employment opportunities
  • Microfinance and SME
  • Environmental performance
Delivery channels Continuous
Press releases and media briefings As required
Informal briefings and communications As required
Public events As required
Corporate website Continuous
Educational projects As required
Youth and employment projects As required
Microfinance for women As required
Programmes for SMEs As required
Assistance to the needy and vulnerable As required

(Refer Value Drivers on page 14 for description of Intellectual capital.)

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