Royal Bank of Canada Overview
Royal Bank of Canada is primarily one of the largest banks globally as per the number of clients served in the USA, Canada, and 37 other countries and also as per the market capitalization. The company is one of the leading financial providers who has also embraced its corporate social responsibility. The institution slogan of Thinking globally and acting locally shows its commitment and strategy in this respect. The bank has been supporting the community of Burlington over the last 110 years. In the last years, the bank has given donations to various local organizations. For having a more lasting impact, RBC is focusing on projects like Children Metal Health, After School Project, and its Blue water project with priority (Burlington Foundation, 2017).
Products and Services of Royal Bank of Canada
The company segments its markets and products and services into five categories and business segments. These are the Wealth Management, The Personal and Commercial Banking, The Insurance, The Capital Markets and the Investor and Treasury Services. The Bank along with its subsidiaries works under the name of Royal Bank of Canada or RBC. The bank is one of the largest banks in Canada and the world as well. The bank is considered as one of the most diversified financial institutions in North America. It provides commercial banking, personal banking, investor services, products and services for capital markets and wealth management services. The company employs more than 81000 part-time and full-time employees with over 16 million clients in the US, Canada, and other 34 countries (RBC, 2018).
Stakeholders of Royal Bank of Canada (RBC)
The stakeholders of the financial institution’s Royal Bank of Canada include its employees, its management, its clients, its shareholders, investors and its communities. The company reports its results annually for its stakeholders, including the shareholders, clients, investors, employees, society, and management. The company has reported its stakeholders to be current and potential clients, current and potential employees, investors, socially responsible research investment community, governments, suppliers, regulators, NGOs, and various community organizations. The company establishes itself as a principally led company with accountability as its prime value. The company considers itself accountable to its stakeholders and reports on a regular basis on financial and corporate social aspects of its business (Royal Bank of Canada, 2018).
CSR Initiatives of Royal Bank of Canada (RBC)
How can business be responsible | A framework for understanding CSR
For understanding how a business can be responsible, it is needed to understand the following seven areas. The company holds high standards for conducting its business responsibly. For this reason, it has some priority ESG issues which are underpinned by strong integrity and governance. These include.
- Leadership, Vision, and Values: RBC vision is to be considered as one the most trusted and successful financial institutions in the world. The company vision promises to contribute to the sustainable future of the society, environment, and economy. The company values for Clients, Values for Employees, and Values in Society and Environmental sustainability are the prime priorities.
- Marketplace Activities: The priorities under this area which is covered through the ESG issues include the customer loyalty and satisfaction, sustainable products and services, privacy, financial inclusion, and literacy.
- Workforce Activities: Thriving the employees in the new work world, leaders pushing for sustainable growth and exceptional experience for employees
- Supply Chain Activities: Responsible procurement, risk management
- Stakeholder Engagement: financial inclusion and literacy, digital enablement, customer and employee satisfaction
- Community Activities: community and social impact, economic value distributed and generated
- Environmental Activities: promotion of environmental sustainability, footprint reduction
Materiality Matrix Adapted from Rbc.Com. (2017). Royal Bank Of Canada | Corporate Citizenship | Environmental, Social And Governance (Esg) Investor Report 2017. Retrieved May 30, 2018, from http://www.rbc.com/community-sustainability/_assets-custom/pdf/RBC-CCR-Report-2017-e.pdf
For what is business responsible |Triple Bottom Framework
As per the Triple Bottom Framework, each business is responsible for People, Profits, and Planet. Looking at RBC, we can see that it is responsible for.
| People | Profit | Planet |
| -Responsible Governance
-Conduct and Trust -Value for Employees: EEO, Visible Minorities, Persons with disabilities, indigenous people, paid internships, training, employee engagement index, diversity and inclusion, employee opinion surveys, career development -Value for Society: Community investments, cash donations and commercial initiatives |
-Risk Management
-Responsible Procurement -Client Satisfaction and Loyalty -Digital Enablement -Privacy -Sustainable financial products and services -ESG Integration and responsible investments -Financial inclusion and literacy |
-Environmental Sustainability
Environmental footprint reduction through heating fuel emissions, electricity and steam emissions, GHG emissions and total energy use reduction |
To whom is business responsible | Stakeholder Model
The company holds itself responsible to its stakeholders. As per the stakeholder model, RBC holds itself responsible to the economic stakeholders which include the customers, competitors, the creditors, the shareholders, unions, the suppliers and distributors and the societal stakeholders, including the governments, the media, the NGOs, the communities and the environment (RBC.Com, 2018). The company has an impact measurement framework which measures the impact of its operations on its stakeholders. It is shown below.
| Stakeholders | Impacts |
| Economic | • Employment
• Localized Economic considerations |
| Environment
|
• Climate Change
• Natural Resources |
| Brand | • Reputation
• Awareness • Consideration |
| Business | • Reward, Retain and Engage Talent
• Business Generation • Client satisfaction |
| Employee | • Better Citizens |
| Social | • Arts and Culture
• Human Needs • Education • Diversity and Equality • Health • Partner and System Support |
This stakeholder model shows how the company enables, develops, and impacts its stakeholders through its operations, initiatives and investments in the specific areas mentioned. Through this impact measurement model, it emphasizes its priorities and the impact it has on the stakeholders.
RBC Impact Measurement Framework Adapted from Rbc.Com. (2017). Royal Bank of Canada | Corporate Citizenship | Environmental, Social and Governance (Esg) Investor Report 2017. Retrieved May 30, 2018, from http://www.rbc.com/community-sustainability/_assets-custom/pdf/RBC-CCR-Report-2017-e.pdf
Conclusion
Looking at the performance indicators and the targets which were set and achieved, and which were not, it can be said that Royal Bank of Canada is doing tremendously well in being responsible to its stakeholders and for its business operations. The commitment to sustainability and environment protection can be witnessed from the reported efforts that it has shown. The company environmental sustainability metrics, however, were not as per the targets set. It can become better in this respect by reducing its carbon footprint and usage of natural resources with higher fuel, electricity and heat emissions.
The company is also very sensibly concerned with the dominant technology trend in our society. It mentioned about the dominant trend of artificial intelligence and how it is moving into the mainstream. The company has also established its labs in Toronto for applied research in this field. However, even though with all the support for this new technology the company should also equally weigh upon the impact that it may have on the community, work, and the way lives will be transformed. Even though the new world of artificial intelligence offers tremendous opportunities, it can be crucial for the new generation to cope with it. Royal Bank of Canada needs to understand its role in educating the new generation.
Furthermore, with the climatic change racing up, the institutions like Royal Bank of Canada needs to put their best interests with the government on addressing the reduction of carbon emissions and addressing the issue of climatic change with innovative solutions. Energy conservations is no more an option, it should be regarded as a priority by companies for safe and clean energy production for the coming generations. It should not be a sole effort. Royal Bank of Canada being the market leader should call upon the peers, competitors, and companies across industries to step up and join hands for environmental sustainability.
References
Burlington Foundation. (2017). RBC Royal Bank: Thinking Globally, Acting Locally. Retrieved May 30, 2018, from http://burlingtonfoundation.org/rbc-royal-bank-thinking-globally-acting-locally/
RBC. (2018). Corporate Profile. Retrieved May 30, 2018, from RBC: http://www.rbc.com/aboutus/index.html
Rbc.Com. (2017). Royal Bank Of Canada | Corporate Citizenship | Environmental, Social And Governance (Esg) Investor Report 2017. Retrieved May 30, 2018, from http://www.rbc.com/community-sustainability/_assets-custom/pdf/RBC-CCR-Report-2017-e.pdf
RBC.Com. (2018). Community & Sustainability. Retrieved May 30, 2018, from RBC: http://www.rbc.com/community-sustainability/
Royal Bank of Canada. (2018, March 2). RBC releases 2017 Corporate Citizenship – Environmental, Social and Governance (ESG) Investor Report and Public Accountability Statement. Retrieved May 30, 2018, from
https://www.newswire.ca/news-releases/rbc-releases-2017-corporate-citizenship—environmental-social-and-governance-
esg-investor-report-and-public-accountability-statement-675653083.html
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