Transcript Role of corporate social responsibility practices in banks.

ROLE OF CORPORATE SOCIAL RESPONSIBILITY
PRACTICES IN BANKS.
Presented by Mr. Lukman Patel. & Dr. Sanjay Kaptan
At "National Conference on Corporate Social ResponsibilityIssues & Challenges“
At MM’s Babasaheb Gawde Institute of Management Studies.





The changes in the economy often change the structure system and
practices of the business. This is witnessed in every economy and in every
business segment.
The acceptance of market driven economy by Indian planners has changed
the very approach of Indian businesses the socialist state controlled
economic structure was slowly replaced by a competitive market
mechanism. This has brought in competitive spirit, efficiency and
productivity oriented practices as well as many customer friendly reforms in
the business.
Banks are commercial institution that work for generation of profit by
offering right type of financial services to customers every bank as a
business institution must care for its customers and should develop a
customer friendly approach.
IT is the primary social ethical and managerial responsibility of the bank to
have a customer focussed approach and develop a more customer friendly
philosophy
CONCEPT OF CSR

Corporate Social responsibility (CSR) is an expression used to
describe what some sees as a company’s obligation to be sensitive
to the needs of the stakeholders in its business operations.

CSR is closely linked with the principles of “Sustainable
Development” in proposing that enterprises should be obliged to
make decisions based not only on the financial/economic factors but
also on the social and environmental consequences of their
activities.

Corporate executives and employees in turn have strong incentives to
internalize the corporation’s statutory obligations to maximize profits,
sometimes to the extent that they abdicate their individual moral and
ethical obligations as human beings.
NEED FOR CSR

Banks needs to be more socially responsible as for the service sector
organisation business with the society has to be predominantly in the
highest denomination of social responsibility, and more importantly
banks are special and high leveraged business.

They have a large number of creditors and failure of one bank can
lead to the failure of many other banks as the customers use faith.

Banks do not exist in a vacuum. They make a large contribution to
the country’s GDP growth, meet the demand for the growing middle
class contribute to infrastructure spending and reach out to the semi
urban and rural areas.
NECESSITY OF CSR IN BANKS.

Banks are financial institution were customer money and finds are
being managed by banks with a assurance of enhanced benefits
quality service and security, if customers are to retain their faith in
the bank the banks should provide them with quality service. This is
a most important major social obligation toward customers.

Failure to provide quality service is nothing but breach of basic social
and legal responsibilities as rightly said by Mahatma Gandhi

“A customer is the most important visitor on our premises; he
is not dependent on us. We are dependent on him. He is not an
interruption in our work. He is the purpose of it. He is not an
outsider in our business. He is part of it. We are not doing him
a favour by serving him. He is doing us a favour by giving us
an opportunity to do so.”
OBJECTIVES OF THE RESEARCH

To find out the potential for implementing a customer
friendly practices in banks

To identify the areas where IT can help to improve the
service quality and work culture.

To identify what are the ways and means to install IT
based services to enhance CRM practices.

To assess an overall impact of IT on development of a
customer friendly culture.
HYPOTHESIS

Fulfilling CRM obligation and enhancing
customer satisfaction is the social
responsibility of the banks

IT plays a important role in development of
healthy CRM practices
POTENTIALS FOR IMPLEMENTING CUSTOMER
FRIENDLY PRACTICES

To offer right advice regarding customers requirement
regarding various banking services.

Fulfilment of KYC norms to inform, awaken and develop a
sense of being right citizens among customers.

To inform the customers as to what are their duties as a
disciplined bank customer.

To publish the customer charter of rights and duties and
awake them as to how they can avail the bank services in
the efficient manner.
IT IS AN INSTRUMENT OF SYSTEM CHANGE.

Development of Information Kiosk to provide right and timely
information.

Promotion of customer friendly and web enabled services.

Development of a paperless work system.

Touch screen single windows to settle doubts and queries of
customers.

Offering a web based dispute settlement mechanism.
WAYS AND MEANS TO INSTALL IT BASED SERVICES TO
ENHANCE CRM BASED PRACTICES
The areas where web enabled and IT based services can be provided to the
customer,
i.
mobile banking for prompt connectivity, information and deliverance
ii.
Rapid expansion of ATM network in the rural area
iii.
Providing financial literacy program through computer and web based
services.
iv.
Providing market intelligence and market information to specific segment
in relation to banking and financial sectors.
v.
Development of depositors, Interest protection program.
vi.
Dissemination of banking and financial information
vii.
Grievance redressal system.
viii.
Deposit insurance and deposit safety
ix.
Development of credit and loan information system
x.
Designing customised product and services.
JUSTIFICATION OF HYPOTHESIS

In the present discussion the researcher has
provided with a variety of area where customer
service and customer care happens to be a most
important aspect of bankers business.

Survival is the key responsibility of every business
as every business is a social custodian of
economic resources therefore the true and
primary social responsibility of bank lies toward
customer which justifies the presumption of the
current paper.
CONCLUSION OF THE STUDY

The above areas are related with the protection of customer interest. There
are various issues where bank as a service provider must come forward and
provide suitable guidance and information to protect investors and
depositors interest.

If a bank offers a right kind of services to the potential and existing
customer that it definitely leads to higher customer satisfaction. Unless and
until banks work for customer development and customer care, expansion
of business is usually not possible. .

One should always keep in mind that it takes month to acquire a customer
but minutes to lose it. Therefore the primary social responsibility of banks in
order to retain their existing business and expand their future business.

Therefore the prime social responsibility is towards customer.