Stakeholder versus shareholder value?
20 February 2009
In the current financial climate, it's hard to imagine a bank that puts the world around it before its sharemarket value. Given that financial institutions are blamed for a lot of the turmoil in world right now, it's reassuring to know there's a financial institution that operates differently and offers more to stakeholders, rather than concentrating on just shareholders.
Almost 110 years ago, Rabobank was founded by enterprising rural people, who had no access to capital markets, and decided to help one another by creating a co-operative. From these small roots, the bank now employs 60,000 people in 43 countries.
Rabobank retains its co-operative bank status - without shareholders - and has a history of considering the interests of society by taking responsibility for their activities with customers, suppliers, employees, communities and other stakeholders, as well as the environmental impacts.
Sustainability
The Rabobank Group contributes to sustainable development - economically, socially and ecologically - for the benefit of society. One example is the Rabobank Foundation which helps disadvantaged groups in the Netherlands by providing them with the opportunity to live independent lives. Furthermore, Rabo Development has created strategic alliances and provided capital to prominent banks in developing countries. Over the coming months, we will highlight the truly inspiring work of these groups in our online newsletter.
Our contribution in Australia
In Australia, our Corporate Social Responsibility (CSR) strategy has been in place for years.
And as a small team in a large organization at RaboPlus, we want to feel we have a bit more control over our contribution to this core Rabobank value. So we are developing our own Corporate Social Responsibility program - soon to be launched.
Our team activities include championing a charity, as well as providing awareness to our customers and stakeholders about issues affecting the environment and sustainability.
We will offer assistance to the underprivileged, and provide opportunities for you - our customers and stakeholders - to get involved.
We will also have a dedicated area on our website where we can post articles, news, and information about activities that you can join in on.
The team at RaboPlus is very excited about the launch of our very own Corporate Social Responsibility program, and Rabobank is a company that encourages its staff to participate in socially responsible activity while at work.
Thanks also to Rabobank for its swift action to support the people and communities in Victoria, by donating $100,000 to the Victorian Bushfire Appeal Fund, and taking steps to assist its clients in the region with their financial burdens during this difficult time.
We'll keep you updated on our progress and planned activities.
Important note: Before making any financial or strategic decision you should obtain professional advice which takes into account your personal circumstances and objectives. This article is not professional advice and does not take into account your personal circumstances or objectives.
The views and opinions expressed in this article do not necessarily represent the views and opinions of Rabobank Australia Limited. The persons involved in its preparation and distribution and their related persons disclaim all liability for any loss or damage suffered due to the use or otherwise of the information.
