Key stakeholder groups
Emerging trends in the operating environment (refer Operating Context on page 29 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.
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 26).
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 | |
|
General Assembly Meeting Extraordinary General Meetings Annual Report Interim financial statements Investor earnings call Investor roadshows and presentations Investor disclosures Press conferences and releases Announcements made on the Saudi Stock Exchange Corporate website One-on-one discussions Feedback surveys |
Annually As required Annually Quarterly Quarterly As required Quarterly As required As required Continuous As required 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 | |
|
Branches Service centres ATM network Online banking Mobile app Corporate website Print and electronic media Social media Customer satisfaction surveys Customer visits Net promoter score |
As required Continuous Continuous Continuous Continuous Continuous As required Continuous As required As required Continuous |
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 | |
|
Supplier relationship management On-site visits and meetings |
As required 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 | |
|
Induction programme Key performance indicators Al Rajhi Academy Career development guidance Internal communications Staff societies Volunteerism Employee satisfaction survey |
Once Continuous Continuous Annually As required As required As required As required |
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 licences 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 | |
|
Consultations Relationship building meetings Informal briefings and communications General Assembly Meeting Extraordinary General Meetings Annual Report Interim financial statements Announcements made on the Saudi Stock Exchange |
As required As required As required Annually As required Annually Quarterly 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 “licence 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 | |
|
Delivery channels Press releases and media briefings Informal briefings and communications Public events Corporate website Educational projects Youth and employment projects Microfinance for women Programmes for SMEs Assistance to the needy and vulnerable |
Continuous As required As required As required Continuous As required As required As required As required As required |
(Refer Value Drivers on page 13 for description of Intellectual capital)