Westpac Group Corporate Sustainability, Essay Example

Rationale

Westpac Group is one of the most robust financial services group in Europe in from FY2002 and FY2014. The group was named the most sustainable bank globally in the DJSI (Dow Jones Sustainability Indices) review. The financial group received a 90% rating in the DJSI during FY2014. The company reeived this accolade as a result of leadership in the following areas;

• Customer relationship management
• Financial inclusion
• Brand management
• Risk and crisis management
• Financial stability and systemic risk
• Climate strategy
• Labor practice indicators and human rights
• Supply chain management
• Anti-crime policy and measures
• Codes of conduct
• Compliance, corruption and bribery

This rating using the RebecoSAM assessment is the most widely accepted rating on the management and performance of companies on environmental, economic and social platforms. Westpac is currently the leading in customer satisfaction as a result of increased lending across Europe. Furthermore, the company also has the highest number of satisfied business customers.

The company has seen the development and enhancement in a number of sustainable strategies. This includes a 2.7 million increase in the number of customers on the company’s new Westpac Live online service. This is supplemented by the fact that in FY2014, the company realized a 27% decrease in the number of customer complaints.

The company has considerably undertaken its responsibility to society. In FY2013, the company invested $131 million in the communities within which the company operates in. In FY2014, the company raised its investment within society to $217 million. Furthermore, the financial group raised lending to social and affordable housing sector by 26% to $820 million. The company has been involved in a number of long-term strategies that all serve to create a sustainable environment for business.

Major Initiatives

The company has undertaken a number of strategies that ensure its sustainability within the business community as well as society. The company’s major initiatives are defined by 4 strategies; (1) Targeted Growth, (2) Customer relationships, (3) Radical Simplification, (4) A Unified Team.

• Targeted Growth; the company has concentrated in gradually growing lending in all major lending categories. The financial institution realized an 8% growth in housing loans, 7% increase in Australian household deposits, 17% increase in funds under management and 10% increase in funds under administration. The company also increase lending to social and affordable housing sector by 26% to $820 million.
• Customer Relationships; the financial institution has embarked on an initiative to have customers holding an active transaction account alongside at least two borrowing, wealth or insurance needs that are serviced in the same account. The company has increased customer satisfaction through embracing technological innovations in the banking industry. the financial group launched Westpac’s new Australian online, tablet and mobile banking service. The contactless payment functionality that the company has made available in partnership with Samsung has increased Samsung device users’ satisfaction. The company has expanded 24-hour services in a number of its functional units in different geographic locations across Europe.

The company has increased its business customers’ access to experts through the Westpac Connect now and the St. George’s Business Connect. These two initiatives allows its business customer to get professional help and increase business value. The company has also concentrated its efforts in improving financial futures for its clients. This has been achieved through the development of proprietary, online wealth curriculum. This is specifically designed to improve employee acumen in wealth creation.

• Radical Simplification; the financial group realizes the need to male banking easier. This is a considerable determinant of sustainability in the financial services industry. The company achieved this through the simplification of its financial products, mitigating and/or removing underlying complexities in some of the financial procedures within the financial group. This is evident in the 60 minute mortgage program that reduces mortgage approval from 6 days. The online application procedure also experienced considerable streamlining.
• A Unified Team; the company has executed a number of programs to improve its services through introducing stronger leadership and capability within its staff. 2,000 of the financial group’s employees undertook professionally accredited qualifications. The company has solidified its staff by retaining up to 88% of new employees and 95.8% of high performing employees. There has been an increase in diversity within the company’s ranks, evident in the 44% in women leadership realized in FY2014. This is an improvement from 42% in FY2013. These efforts have been enhanced by a considerable improvement in the work techniques and environments. The physical layouts of workplaces have been developed to ensure maximum synergies between functional areas and functional units.

Time Engaged in Sustainability

Westpac is a high performance financial institution that has recorded stellar performance since 2002. During FY2002, the company begun strategic reshaping by selling off AGC (Australian Guarantee Corporation). This allowed the company to streamline business operations and expand by acquiring the Rothschild Australia Asset management, 51% of HFM (Hastings Funds Management) Ltd The company also acquired parts of the BT Financial group. In 2005, the company acquired the remaining 49% of HFM Ltd. In 2008, the company merged with St. George Bank to form Westpac Group. In 2011, the company launched the Bank of Melbourne. The company has engaged in sustainability strategies and measures for the past 12 years.

Personal Impression

The report on Westpac highlights the company’s unique strategy that has set the bank apart from its competition over the past decade. Despite the effects of the global recession still being felt throughout Europe, Westpac group has found a way to realize growth and development amid a tumultuous European economy. The financial group has managed to develop a myriad of strategies to realize this sustained growth and development.

The report highlights the integral aspects of banking in the information age. While customer service is the most important facet of success in the banking industry, the effective use of the latest technology is essential. Westpac applies a good balance of technological application and customer service to realize the high levels of customer satisfaction that sets its apart in the market. A considerable strength and result of the balance of these two main factors is the development of products that respond to customer needs.

The report also identifies the importance of ethics in business involvement in the community. While profitability is the main goal and objective of businesses, a sustainable financial institution seeks to integrate itself with the communities within which it operates in. Westpac heavily invests in the communities within which it operates it. One important strategy is the increase in lending to social and affordable housing sector. This considerably integrates the business with the growing community.