A stakeholder is a person, group or entity that has an interest in an organisation, and can either affect or be affected by its activities. A key stakeholder is one who is among the most important stakeholders for DFCC. Key stakeholders are highly interested in DFCC’s strategies, operations, and performance, as they are the most affected by its business. Hence, DFCC’s success and growth often depend upon its key stakeholders.
Maintaining an open and constructive dialogue with stakeholders is imperative for the continued development of a business, especially in the financial industry, where robust, long-term relationships are of critical importance. This also helps DFCC Bank understand the expectations of all stakeholders, identify issues, and discover opportunities to serve customers better. In addition, it plays the role of aiding the overall development of communities where the Bank serves, as well as the national economy. The Bank proactively identifies the needs and expectations of stakeholders in order to integrate their concerns into the decision-making process, and the resultant value-creating activities.
Shareholders and Investors
Due to the vital role played by investors in the success and growth of a business, it is of utmost importance to maintain strong and transparent relationships with them. This requires effective communication and marketing to control the flow of information between the Bank, its investors, and shareholders.
DFCC Bank’s Corporate Communications Policy and Investor Forums enable the Bank to convey its future strategies and sustainability goals which help them to make informed decisions about their investments. The Bank has consistently maintained the practice of publishing information about its financial performance and progress through the Colombo Stock Exchange (CSE), Annual Reports, media releases, as well as its corporate website to convey insights on its value creation process.
Customers
The rapidly changing business and technological landscape has resulted in constantly evolving customers’ needs, as well as their perceptions on the portfolio of products, services, and processes needed to optimise their benefits. This has led to the creation of a customer-centric strategy at DFCC that is focused on the delivery of a great customer experience based on innovative products and a responsive service. The Bank’s digital-first approach is a step forward in ensuring a richer customer experience and better customer relations, which could reap rich dividends in the years ahead. The introduction of emerging technologies such as Artificial Intelligence, Machine Learning and Data Analytics hold the key to creating a competitive advantage in customer acquisitions and satisfaction.
Employees
The Bank’s employees embody its core values, and remain committed to achieving its strategic objectives through their diligence and perseverance. The Bank invests in its team at all levels, through continuous training, in addition to fostering the application of innovative technologies, and spurring collaboration. The Bank’s Internal Code of Conduct can be accessed by employees through the intranet. This clearly spells out the Bank’s policies on the avoidance of conflict of interest, insider dealings, unfair business practices, and the importance of confidentiality, especially in terms of sensitive information. A Whistleblowing Policy is in place to enable employees to report any observations of illegal or unethical practices, under strict confidence. A Board-approved Grievance Handling Policy ensures a fair and equitable work environment, without discrimination on grounds of race, religion, political affiliation, or any other grounds.
Business Partners
The Bank works continuously on strengthening its relations with business partners such as institutions that provide lines of credit (to manage or to on-lend), as well as vendors who supply goods and services which are required to carry out business operations successfully. Business partners comprise an important component of a Bank’s value chain, and play a critical role in its value creation process. A Procurement Policy has been established to ensure cost-efficient and equitable processes in obtaining necessary goods and services. Dealings with suppliers mainly involves securing competitive pricing for goods and services of sound quality within expected time-frames while building mutually beneficial, long-term relationships.
Communities
Communities are people, groups, organisations, or businesses that have an interest or concern in the activities of the Bank, which could be affected by their actions, objectives, and policies. Conversely, such communities can also be directly or indirectly affected by the Bank. Such stakeholders include local residents, community groups, government agencies and workers, business owners, neighbourhood leaders, religious leaders, professionals, members of various commissions, and other groups who enjoy a reciprocal relationship with the community. DFCC Bank supports its local communities, collectively and individually, through its sustainability efforts, which include a range of CSR activities linked to its sustainability goals, and other projects carried out under various themes.
Advocacy Groups
Advocacy groups come together around common issues such as political or social causes, recommending certain changes in government, public policy, society, and/or law. These include groups such as the media, community/welfare groups, and international and local Non-Governmental Organisations (NGOs), which aim to influence public opinion and government policy towards the betterment of political and social systems. Such groups espouse various political, social, religious, moral, or commercial positions, and engage in lobbying, media campaigns, publicity activities, polls, research, and policy briefings. Certain advocacy groups are supported by powerful business or political interests, and are in a position to exert considerable power on policy making and Government decisions. Therefore, the Bank should have a clear view of their relative power, perceptions and expectations. Carrying out operations and CSR initiatives which are aligned with, or not antagonistic towards such groups, helps foster mutually beneficial partnerships.
Stakeholder Engagement
DFCC Bank takes a holistic view of its stakeholder groups, engaging individually and collectively with them according to each given situation or need. The Bank continuously seeks to better understand its various stakeholders and their expectations, using their feedback to constantly improve its operations. The following table details the methodology the Bank uses in engaging with each stakeholder group.
Stakeholder group |
Reason for engagement |
Key topics discussed during reporting period |
How the Bank responded |
Shareholders and investors | To provide them with information on the progress achievements of the Bank |
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Customers | To inform them of the Bank’s products and services and also to obtain their feedback
To monitor the facilities granted and to provide assistance, as well as obtain/provide information required with regard to facilities (including regulatory requirements) |
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Employees | To inform them of policies and procedures, Bank’s progress, welfare activities, etc., and also to get their feedback
To ensure their welfare, attend to problems/issues faced by them, to provide training, and career progression |
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Business Partners | To provide the information they require on the Bank’s performance and to obtain information on their activities which will be useful to the Bank |
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Regulators | Reporting, i.e. to provide information required by them and for them to inform us on new regulations, etc. |
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Communities | To make them aware of what benefits the Bank is providing to communities and to obtain their support and involvement in the Bank’s activities targeted at community development |
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Advocacy Group | To understand their perceptions and expectations |
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Industry Associations | To obtain/provide information for mutual benefit as they represent multiple members |
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