Stakeholder Engagement

The Board is open to suggestions, recommendations or advice from any stakeholder and welcomes appropriate and constructive engagement from all those who have an interest in the Bank. Commercial Bank maintains regular engagement with key stakeholder groups. A number of avenues have been established to facilitate communications between the Board and shareholders, employees and other stakeholders. A ‘stakeholder’ is defined as any group or individual who can affect or be affected by the achievement or non-achievement of the objectives of the Bank.

The Bank’s Corporate Social Responsibility begins with open dialogue with our stakeholders and hence steps have been taken to strengthen this dialogue by enabling closer connections with our stakeholders. The stakeholders identified on this basis together with topics of engagement, the method and the frequency of engagement are tabulated below.

Stakeholder Engagement

Stakeholder Group-Based Engagement and Dialogue Platforms	Topics of Engagement	Mode of Addressing Concerns Raised*
Shareholders, Investors, Analysts
Annual Reports Annual General Meeting Extraordinary General Meeting Interim Financial Statements Press Conferences and Media Releases Announcements made to the Colombo Stock Exchange One-to-one Discussions Road Shows Corporate website: www.combank.net/ www.combank.lk	Plans to raise capital to improve capital adequacy ratio Plans to improve provision cover Plans to improve cost income ratio Plans to improve liquidity Maturity mismatches and plans to bridge the gaps Plans to upgrade credit rating Ways of minimising tax liability through effective tax planning Branch expansion plans Privilege cards to shareholders Holding the Annual General Meetings at a time convenient to shareholders to facilitate maximum participation	At Commercial Bank, we have established a transparent and close communication with our shareholders, as well as with our existing and prospective investors. We make every effort to implement strategic plan aimed at achieving Vision and Mission of the Bank and to share the results. Principle of equality is our utmost consideration for us. We response to all concerns of shareholders provided they are not related to commercial secrets with a view to ensuring the management and shareholders maintain ongoing dialogue. We value the principles of transparency, accountability, and look for regular briefings.
Customers
Branches Minicoms Customer service points Online feedback Relationship and account managers who engage directly with corporate customers Mobile banking Complaint Resolution Officer appointed with the concurrence of ‘Financial Ombudsman, Sri Lanka’ Customer-relations workshops Customer Satisfaction Surveys Call Centre New products to be launched Corporate website: www.combank.net/ www.combank.lk	Quality of employee interaction and service: professionalism, respect for customers, transaction time, etc. Customer convenience factors such as branch layout, availability of staff, etc. Customer expectations and demands with respect to facilities such as utility bill payments and other regular payments such as insurance premiums, school fees, credit cards, etc. Interest rates, securities, terms and conditions etc. Amicable resolution of customer disputes.	Customer satisfaction is utmost importance to us. Opinions and expectations of our customers inspire us in developing new products and services. We take every effort to delight our customers which ranges from improving information security to responsible marketing communication, innovative and environment-friendly products, and supporting customers in business development. We conduct periodic surveys to learn about our customer satisfaction level and to get their views on improvements in level of services to delight them. A member of the Corporate Management functions as the Compliant Resolution Officer of the Bank with the objective of satisfactory settlement and resolution of complaints/disputes put forward by customers. This initiative was taken as a part of the voluntary scheme entitled ‘Financial Ombudsman, Sri Lanka’ set up by the banking and finance industry with the concurrence of the Central Bank of Sri Lanka.
Employees and Employee Associations
Annual relationship-building exercises with trade unions and executive association representing employees Ad hoc meetings with employees and unions at need Negotiations on collective agreements with unions and association Annual Managers’ Conference Regional quarterly review meetings Circular instruction on a needy basis Daily operational updates to staff via email Quarterly internal newsletter, Com Pulse Intranet site of the HR Division Feedback and brainstorming sessions as part of cross-functional training programmes Special events such as quiz contests, staff children’s party, art competition, sports competitions, etc.	Remuneration including performance-based compensation Staff welfare Environmental legislation Compliance with national regulations Implementing and managing the ‘Social and Environmental Management System’ (SEMS) at the Bank Implementing anti-money laundering practices Whistle-Blowing Mechanism Basel II implementation New accounting standards Future plans of the Bank Liquidity and funding strategy	Commercial Bank believes that high motivation and satisfaction levels of employees are of fundamental importance in ensuring sustainable business performance. Target driven culture of the Bank which rewards employees based on the degree of achievement of the pre-set targets for both the Bank and the individuals assure the accomplishment of the objectives of both, efficiently and effectively. In addition, the Bank organises training and awareness sessions and sends circular instructions with a view to increase awareness of our employees on various sustainability issues embedded in the SEMS.
The Sri Lanka Banks’ Association (Guarantee) Ltd.
Formal and informal interactions with the Sri Lanka Banks’ Association Industry-specific communications	Impact of new accounting standards and other regulatory requirements Discussions with policymakers on industry-specific tax matters	The Bank as a key customer of the Sri Lanka Banks’ Association, actively engages with this body with a view to bringing the matters of importance to the Banking sector before the regulators and other relevant parties. Engagement with the Association in the process of preparing for the adaptation of new and revised accounting standards from 2012 is one of the key involvements that the Bank encompassed during the year under review. Further, the Bank regularly provides feedback to this Association on matters of interest to the Banking Industry.
Suppliers
Supplier relationship management On-site visits and meetings	Procurement opportunities offered by the Bank Engagement and registration on preferred supplier database Contractual performance	The Bank maintains a list of registered suppliers with whom it engages in the ordinary course of business. Reliability and mutual trust place a vital role in building relationship with suppliers. Further, information transfer through continuous dialogue with them too ensures a high level of satisfaction to both the Bank and to the suppliers.
Communities and Youth
Widespread network of delivery channels Corporate website: www.combank.net/ www.combank.lk Conferences Press release Scholarships Sponsorships Public events Call Centre	Corporate social responsibility initiatives Cost-effectiveness of CSR initiatives Scholarships for university students Youth-targeted sponsorships International profiling of the brand through sports and the arts	The Bank contributes to local economic development through our widespread Branch, Minicom and, ATM network scattered all over the country. Being transparent in all of its activities, the Bank keeps the public informed of its sustainable performance and new developments on an ongoing basis. By supporting needy niches of the society sponsorships and activities of its CSR Trust including scholarships offered to underprivileged students the Bank aspires to reach local communities.
Legislators and Regulatory Bodies**
Stakeholder meetings Directives and circulars Filing of returns Consultations In areas of socio-economic sensitivity, engagement is dictated by the issues raised On-site surveillances by the regulator Corporate website: www.combank.net/ www.combank.lk Press releases	Central Bank of Sri Lanka regulations pertaining to the Licensed Commercial Banks Other Government regulations including taxes Compliance with Codes of Best Practice issued by The Institute of Chartered Accountants of Sri Lanka and the Securities Exchange Commission of Sri Lanka, the Colombo Stock Exchange and the Central Bank of Sri Lanka Banking license fees The role of business in society International financial developments SMEs’ access to finance Implementation of SEMS in line with IFC guidelines Various issues that affect the well-being of Bank employees	We take utmost care in complying with all applicable laws and regulations to ensure the safety of the customers’ investments. The Bank maintains regular dialogue with regulators with a view to assuring regulatory compliance and strengthening the relationship with other public and professional institutions.
Media and General Public
Press conferences Media briefings Press releases Informal briefings and communication	Interim and annual results Recognition for excellence by various external parties New products, services and outlets Micro-financing and SME development CSR initiatives Staff recruitments Communications to the General Public	The media acts as a most important tool which facilitate in building regular communication with our stakeholders. Having realised the value of continuous dialogue with the media, we take every endeavour to inform the media timely and accurately with our press releases and share opinions with opinion leaders at press conferences.

* There were multiple ways of addressing concerns raised depending upon the nature of the issues and the urgency of the resolution solicited as detailed. The frequency of the resolution ranges from pre-determined deadlines including annual, quarterly, monthly, etc. to ad-hoc.

** Legislators and Regulatory Bodies include the Central Bank of Sri Lanka, the Department of Inland Revenue, Finance Ministry, Registrar of Companies, Colombo Stock Exchange, Securities and Exchange Commission of Sri Lanka, other Government organisations, Ceylon Chamber of Commerce, Donor Agencies, External Auditors, Sri Lanka Accounting and Auditing Standards Monitoring Board, Professional Organisations including The Institute of Chartered Accountants of Sri Lanka, International Finance Corporation, Financial Ombudsman, etc.

Furthermore, any shareholder is free to communicate through the Investor Feedback Form annexed to the Annual Report and via the Bank’s e-mail address, email@combank.net.