Experience of Rietumu Bank in Corporate Social Responsibility

Experience of Rietumu Bank in Corporate Social Responsibility 1

Rietumu Bank devotes much attention to corporate social responsibility, ethics and business transparency. In our day-to-day operations, Rietumu adheres to all EU directives aimed at ensuring company’s transparency. We also follow the stringent principles of corporate ethics both with our customers and in our internal communications. 2

At the same time, we are convinced that ethics and corporate responsibility should go beyond one company. We believe that a company which makes a profit must also offer support to the community. We endeavour to propagate the ideas of patronage and charity. In this area we have gained a considerable experience about which I would like to tell you today. 3

History The first large project of Rietumu Bank in the field of social support was cooperation with the organization “Glābiet Bērnus” in the 90 s. The task of this organization, which was established in Latvia by Scandinavian charity funds, is childcare and protecting children’s rights. The systemic approach to social responsibility issues was started by Rietumu Bank in the year 2000. By that time, the Bank has already had experience of wide scale projects in the field of charity, social care and culture. Our key partners at that period were: ü Cultural Fund ü Children Clinical Hospital Development Fund ü Jewish Community of Latvia ü Jaunrades Fonds 4

Rietumu Bank Charity Fund Wide scales and large budgets of the projects allowed us to establish our own fund. The Rietumu Bank Charity Fund was established in 2007. Its task is selection and management of projects, as well as supervision over their implementation and use of resources. The sole founder of the Fund is Rietumu Bank. 5

Chief trends of activity of the Rietumu Bank Charity Fund are: ü Medicine. Children’s medicine. ü Childcare ü Social sphere ü Urban environment development ü Support of culture and art Our philosophy is to provide support wherever it is needed most and where its results are tangible for a wide circle of people. 6

Medicine. Children’s Medicine. Childcare Children’s medicine is the top priority area of the Rietumu Bank charity activities. I. Support of the Children’s Clinical University Hospital in Riga Repair of the neurosurgery department premises (2002 -2003). Purchase of equipment: temperature-regulated chambers, equipment for monitoring and medication taking (2004 -2006). The example of Rietumu Bank triggered Latvian private businesses to offer wide-ranging support to the Children’s Hospital. 7

II. Regional Hospitals and Disaster Medicine Purchase of equipment for ENT operations for the regional hospital in Rezekne (2005 -2006). Purchase of a portable temperature-regulated chamber for infants for the Disaster Medicine Centre (2007). Purchase of a field hospital tent for the Disaster Medicine Centre (2006). 8

III. Support of the Nursing Profession When children are treated in a hospital, the major burden is laid upon hospital nurses who fulfil orders of doctors. The Bank and the Fund held special programmes “Searching for the Best Nurse” in Riga (2008) and in Latvia (2009). More than 50 nurses have received cash bonuses. The programme’s partner is Diena. IV. Support of Boarding Schools and Children’s Institutions Over 50 projects implemented at regional schools, special boarding schools and children’s homes. The largest project: salt-spray chambers for treating respiratory tract diseases at the special boarding school in Cēsis (2010). 9

Social Sphere Over 70 projects implemented jointly with state institutions, local governments, unions of pensioners, the disabled, victims of totalitarian repressions, etc. The largest projects: at Social Care Centres (2008 -2009). The programme’s partner is the Ministry of Welfare. A recreation ground for people with special needs (Liepaja). Equipment for kitchen and food storage (Ogre). Meeting Centre for the Centre’s patients (Bauska). Renovation of the children’s music school building in Riga (2010). 10

Urban Environment Development Rietumu Bank Fund has implemented several large projects jointly with municipalities of Riga and Jūrmala which allowed improving the environment in these cities. The largest projects: üChildren’s playground in Mežaparks (2008) – the largest and the most up-to-date playground in Riga üEquipping bicycle parking racks (2005 -2006) üExterior lighting system of St. Paul’s Church in Riga (2007) üStreet clock on Lāčplēša Street in Riga (2010) üStreet clock in Dzintari, Jūrmala (2007) üFountain in Majori, Jūrmala (2008). Main partners: Riga, Jūrmala, Latgale Urban District of Riga. 11

Support of Culture and Art The Fund supports high-quality and innovative projects in the field of culture. The Fund and the Bank share marketing tasks (sponsorship) and charity. The largest partners: ü Museum of Art ü Museum of Foreign Arts ü National Theatre ü Cinema Forum “Arsenal” ü Festival “Golden Mask in Latvia” 12

Charity at Crisis Period The Fund does not consider new big projects with large budgets. The Fund aims at supporting long-term projects already in progress. The Fund aims at retaining its positive potential accumulated during the previous period. The Fund continues considering critical social projects. 13

Results When being engaged in charity and social projects, Rietumu Bank has never set itself purely marketing tasks. The projects the public is aware of are just a small part of what has actually been done. Alongside large projects, we implement a lot of small but equally important ones, especially in the provinces. We help schools, libraries, children’s homes, shelters for people with special needs, pensioners and many other people. The community is gradually becoming more aware of these deeds and it becomes a part of the company’s reputation. 14

Projects’ Geography 15

Problems One of the main problems is insufficient communication between those who need support and the Fund. To solve it, we have launched a convenient website providing a possibility to submit applications and a maximally simple procedure of considering them. Any resident of Latvia can apply to the Rietumu Bank Fund for help. We also regularly arrange the Fund’s advertising campaigns which aim is to attract attention to the possibility of obtaining support. We have also managed improving the communication with the help of our partners among the mass media: Diena and Latvijas Avīze newspapers, Publishing House Petits, Latvian Radio. 16

There are certain problems in cooperating with the press. Many Latvian periodicals today do not see the difference between marketing and charity. Therefore, periodicals, which are not partners of the Fund, either completely ignore the information about charity work, or do not reveal who has provided the help, or consider such information as a paid-for advertisement. 17

An important problem is related to the purpose-oriented use of the resources allocated for charity. Among those who apply for help, there are organizations which activity is non-transparent. Therefore, it is important not only to allocate resources for support, but also to provide effective monitoring over the use of these resources. The Rietumu Bank Fund employees devote much attention to such monitoring – they visit the companies, evaluate the performed work in-situ, request cost estimates and at times even find subcontractors. According to the Articles of Association of the Rietumu Bank Fund, its administrative costs may not exceed 15% of the Fund’s budget. 18

We hope that there will be increasingly more private companies, which position themselves as responsible members of the community and devote attention to the social responsibility issues. This is especially important now, when many people are having a really tough time. We are always ready to share our experience. Let us combine our efforts to make our life better! 19