Community

The National aims to work with communities to solve problems in an active way, beyond simply managing money. We believe that as a large corporation we have obligations to the society in which we operate. These must be balanced with the need to provide profit to our shareholders.

We have not always managed our broad corporate obligations successfully. We see a need to identify and better balance our responsibilities across all stakeholder groups in the future. If we strike conflict among these groups we will be open and transparent in how we manage this conflict. At all times, our focus will be on responsibly managing a growing and profitable business.

In our view, our capacity to increase our profits over the long term depends, in part, on our ability to conduct our business responsibly and to make a positive contribution to the community.

Our staff have told us that they care deeply about the National's reputation and our values. We need a satisfied and motivated workforce to grow our profits. Our customers have told us that they want us to provide quality service that meets their needs. Other stakeholders have echoed these views. We are listening to and learning from all our stakeholders.

In Australia, one of our proudest achievements this year was borne out of our concerted effort to listen to our community stakeholders. The Community Consultation Forum, originally established in 1999, under the chairmanship of the Reverend Tim Costello, gained momentum this year. The Forum conducted a major research project on the banking needs of low income and otherwise vulnerable people, which identified the problems confronting the most disadvantaged groups. More than 200 service provider groups and advocates for these people across four Australian states told us what they wanted from a bank.

As a result of the research, in August 2001, we launched the National Concession Card Account offering fee-free banking to National customers who are pension, health-care or seniors' health card holders.

The Concession Card Account provides a very direct and practical response to the concerns of low-income customers. It also enabled us to work with our community stakeholders, to learn from each other and to develop responsible business practices.

The Forum also reinforced that building trust among all our stakeholders will take time and that talk must be backed up with action.

The National has an ongoing commitment to work with the Forum to address other high-priority concerns of people on low incomes. The Forum will focus on practical issues concerning financial products and services and, where appropriate, we will seek industry and government responses to concerns raised.

Our concern for the community extends beyond its need for financial services. We know that stronger communities provide better business environments contributing to longer-term growth and profitability. Strong communities provide stable and skilled employees and prosperous customers.

Across the globe, our staff are involved in supporting local volunteer and not-for-profit groups.

At the Bank of New Zealand, for example, a Staff Community Involvement Programme has been introduced to provide a formal structure for employees to work with the bank's community partners.

Initially, this programme has focused on two partners: Heart Children NZ Inc, which provides support for children born with heart conditions and for their families; and the Kiwi Recovery Programme, which is helping to rebuild the population of this unique and endangered bird.

A review of our community activities by our Clydesdale Bank and Yorkshire Bank operations was recently completed with a number of new sponsorship programmes being considered. A long-standing programme is Clydesdale Bank's Matched Payroll Giving Scheme, in which the Bank matches, pound for pound, staff donations to a national charity.

In Australia, the National encourages staff to become involved in their communities - for example, by supporting our CommunityLink programme partners. Some of the groups we work with include the Australian Red Cross Blood Service, the Australian Conservation Foundation, and Lions Australia - community service and volunteer-based organisations meeting the needs of a broad cross-section of the Australian community.

We go beyond simply providing money for these groups, providing other forms of support - such as staff using their skills and expertise to help community organisations achieve their objectives and serve their own clients.

We are also serious about our environmental responsibilities and have been a member of the Federal Government's Greenhouse Challenge since 1997. The National maintains its emission levels within its commitment of the original agreement.

Emissions have been reduced through the introduction of energy-efficient lighting and the efficient control of air-conditioning in our properties. The National continues its extensive paper recycling programme to limit the extent of paper sent to landfill.

For a decade, we have been assessing environmental risks in relation to all lending to environmentally sensitive industries, facilities and developments. For example, under our comprehensive risk management regime, the National has provided finance to developments and industrial operations involving the remediation of contaminated land. We have also been able to lend to a number of renewable energy projects by developing appropriate commercial arrangements.

By encouraging customers to follow reliable environmental advice, the National believes that the value and profitability of our customers' businesses will increase.

Building numeracy Staff volunteers from Northern Bank are helping primary school children with their maths. In Northern Ireland, the Northern Bank's Time to Count programme is the first step in a scheme to support numeracy skills and financial literacy. Northern Bank saw opportunities to help develop numeracy skills in primary schools and for staff to become involved by sharing core skills with the community. Through the Time to Count programme, volunteers like Johnny Jordan, a customer service adviser working in Northern Bank's Cregagh Road branch, are paired with a child or small group of children for an hour each week to help with fun maths activities. The programme is mainly targeted at eight- and nine-year-olds who lack confidence and self-esteem. Staff have found the programme immensely satisfying and their exposure to urban deprivation has also made them more socially aware. Johnny says, "We are enjoying the challenge of developing new skills as well as building on skills we possibly didn't realise we had. Even in this short period of time, it has been really rewarding to watch the children develop." Vonnie Hunter, the principal of Belfast's Star of the Sea Primary School, says the volunteers provide excellent role models from the world of work. "The projects help to develop self-belief, confidence and social skills," she says. "In the future, we hope this will have an impact on the expectations the pupils have of themselves and their future employment prospects." Staff involved in the Time to Count programme commit themselves to being involved for at least one academic year, but are encouraged to participate for three years to provide continuity of support. The programme has been a great success, winning the Belfast Telegraph 2001 Business Award for Outstanding Community Involvement, whilst still in its pilot phase.