po box 3555, jeddah 21481 report 2013€¦ · po box 3555, jeddah 21481 kingdom of saudi arabia ....

Empowering our community

Verified by:

The National Commercial Bank

Corporate Responsibility Report 2013

The National Commercial BankPO Box 3555, Jeddah 21481

Kingdom of Saudi Arabia

www.alahli.com

Custodian of the Two Holy MosquesKing Abdullah Bin Abdulaziz Al Saud

HRH Prince Salman Bin Abdulaziz Al SaudCrown Prince, Deputy Premier and Minister of Defense

HRH Prince Muqrin Bin Abdulaziz Al SaudDeputy Crown Prince, Second Deputy Premier, Advisor and Special Envoy of the Custodian of the Two Holy Mosques

1 Highlights of 20132 A special position of trust4 NCB’s heritage of community service

6 AlAhli job opportunity programs14 AlAhli non-profit organizations program22 Employees

24 The environment26 NCB’s Corporate Responsibility

strategy for the future Designed and produced by Origin Communications Group

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AlAhli Employment Program – 7,250 young Saudis were hired at 125 companies.

AlAhli Entrepreneurs Program – 1,012 people were trained through 45 courses on How to Start Your Small Business. And 881 ladies were trained through 42 courses on How to Start Your Own Home Business.

AlAhli Productive Families Program – 2,408 women were trained through 112 courses.

AlAhli Charity Organizations Program – 456 charitable societies were supported across the Kingdom.

INJAZ-Saudi Arabia Support Program – More than 27,000 students were trained through 803 courses.

AlAhli Voluntary Work Program – 174 NCB employees contributed a total of 2,022 hours’ voluntary work.

Becoming the financial sector’s employer of choice is a key strategic goal for NCB. During 2013 we saw the early signs of a profound transformation in staff attitude, motivation, and performance.

Initiatives included branch energy audits; installing solar water heaters, sun-proof window film, air curtains, and LED lighting.

Promoting job creation

Supporting non-profit organizations

Developing our employees

Caring for the environment

For any organization to achieve lasting success, it is essential to understand and respond effectively to the priorities of all key stakeholders.

Historically, we have produced an Annual Report for shareholders, and since 2008 have also published a separate Sustainability Report. Our work in sustainability has evolved over the years and the focus is now more appropriately and precisely described as ‘Corporate Responsibility’, the title of this year’s report and our first to use this new definition.

Our work with each stakeholder group overlaps to a varying extent, and as a whole represents NCB’s commitment to taking a meaningful and multi-dimensional role in the Kingdom’s economy and society. This 2013 Corporate Responsibility Report details all our efforts in this respect during the past year.

NCB is Saudi Arabia’s largest financial institution. For the last 60 years, people have looked to us for leadership and innovation, considering NCB a trusted, ethical partner in their professional and personal lives. In many ways, our growth since 1953 has mirrored the development of modern Saudi Arabia. Today, with more than 3.5 million customers, our brand is one of the Middle East’s most trusted.

The pre-eminence and respect gained over the years is mainly due to our empathy and partnership with people across the Kingdom – a special position of trust where NCB is known simply as ‘Bank AlAhli’, the national bank.

Saeed Bin Mohammed Al-GhamdiChief Executive Officer

A special position of trust

2 Corporate Responsibility Report 2013

“NCB is Saudi Arabia’s largest financial institution. For the last 60 years, people have looked to us for leadership and innovation, considering NCB a trusted, ethical partner in their professional and personal lives.”

The National Commercial Bank 3

NCB’s heritage of community serviceSince its earliest beginnings, NCB has been an active participant in community service within Saudi society. As the nation’s bank, we are very much part of this society – not just in providing financial products and services, but in understanding the wider needs of our customers and the community that we share.

Our contributions, our commitment, and our involvement have always been based on this principle. As a result we have touched many lives, and still do: helping people to improve their circumstances and achieve the progress that they seek for themselves and their families.

Our dedication to community work led to the formation of the Corporate Social Responsibility (CSR) Department in 2004, which has since been the driving force behind NCB’s community support activities.

We always seek to identify the needs of society and find the best solutions. Over the years, we have developed many programs that have proved extremely worthwhile, from health and education programs to job creation and helping non-profit organizations to function more effectively.

In 2013, our approach was concentrated on comprehensive fulfillment of our enablement programs – and this will continue, providing access to knowledge and training, and also extending micro-finance and professional support so that participants have the resources and capability to generate sustainable income and secure financial independence.

Our community service vision

To be Saudi Arabia’s leading joint-stock company in corporate responsibility.

NCB’s community service programs have been structured to focus on two primary priorities:

• To create new job opportunities and help reduce unemployment

• To support non-profit organizations.


AlAhli Job Opportunity Programs

AlAhli Employment

Program

AlAhli Entrepreneurs

Program

AlAhli Productive

Families Program

These programs help create employment for young Saudis by empowering them with the knowledge and skills to set up and run small businesses. The programs also help low-income families to learn vocational crafts that enable them to secure a fixed source of income.


“From facing very difficult prospects of finding a job, I now have a career.”

Gender ratio of beneficiaries

Male 63%

Female 37%

AlAhli Employment ProgramThe AlAhli Employment Program is designed to help young people find private sector jobs, complementing the job opportunity programs and government efforts to stimulate job creation across the Kingdom.

This vital program is implemented by specialized bodies, which observe high standards in the selection and development of private sector jobs, and match them with unemployed young men and women.

These organizations mentor the recruited young nationals during the three months following their appointment. NCB’s contribution is to support youth employment without burdening them with financial costs.

Objectives:

• To create new job oppertunities for young men and women

• To help reduce unemployment through recruiting both genders.

Strategic partners

• Chambers of Commerce and Industry

• Employment agencies.

2013 achievements

During 2013, 7,250 young male and female nationals were hired at 125 companies in 39 towns and cities throughout the Kingdom.


When I was asked to rate the impact of the AlAhli Employment Program, there could be only one answer – it has changed my life. From facing very difficult prospects of finding a job, I now have a career – and the support and guidance that enable me to make the most of the opportunity.

I know I’m not alone in this assessment. Many thousands of young people like me throughout Saudi Arabia are now looking to a brighter future. We have found jobs that match our aptitudes and qualifications, and we are being shown the way to take our places in the business world.

Faisal Abdallah


Small and medium enterprises play a significant role in most national economies, but global studies show that lack of managerial skills is the biggest obstacle to the development of this sector.

NCB has undertaken to provide young Saudis with the knowledge required to start their own businesses. Two weeks of initial training are followed up over three months, with the Bank providing free advice and logistical support. Courses cover specific fields (eg, tourism), in addition to general business principles.

Objectives

• To instill an entrepreneurial spirit and develop business skills among young Saudis

• To qualify young people for investment in small enterprises

• To develop young people’s skills and enable them to be successful business owners

• To prepare an all-inclusive action plan for each enterprise so that trainees are able to secure financing

• To provide guidance and follow-up on proper implementation of the new enterprises.

Strategic partners


• Private universities and colleges.

2013 achievements

• 1,012 trainees (56 percent males and 44 percent females) were trained in 21 cities through 45 courses on How to Start Your Small Business

• 881 ladies were trained in 21 cities through 42 courses on How to Start Your Own Home Business.

“My business was recognized as a ‘Saudi Fast Growth 100 company’ in the SAGIA awards competition, which was sponsored by NCB.”

AlAhli Entrepreneurs Program


Waleed Al-Shahri, Tamooz General Contracting Company

I have never relied on others to achieve my career goals. After graduating with an academic certificate in engineering, I joined a private company for a short period, aiming to develop and enrich my experience. High income was never my concern – my main focus was the goals that I was determined to achieve.

During my work, I learned the principles of self-employment by taking the initiative to undertake projects and complete them on time and to the proper quality level. At that time, the market required innovative materials, but this involved extensive travel.


AlAhli Productive Families ProgramThis program assists ladies from needy families to engage in various vocational arts and crafts such as heritage products, cosmetics, sewing, and hospitality activities.

NCB has trained families to engage in vocational arts and crafts, afterwards, they are provided with all the necesary materials to begin production, enabling them to secure a fixed source of income and a decent living.

Objectives

• To create job opportunities for productive families

• To minimize the burden on charities by enabling families to become a productive segment of the community

• To develop local products in an innovative way, while being committed to revitalizing and maintaining traditional crafts.

Strategic partners

• Saudi charities


• Saudi Commission for Tourism and Antiquities.

2013 achievements

2,408 women were trained at 112 courses in 49 cities across the Kingdom.

“NCB gave me an opportunity to participate in exhibitions and bazaars, while I built the name and reputation of my enterprise. I was able to win the confidence of those with whom I dealt, and I was inspired to start creating my own designs.”


I believe that everything you dream of, believe in faithfully, and earnestly strive for will eventually be achieved. I had been uttering these words while viewing my mother sewing. My affection for sewing and handicrafts made me draw my own dream to make the future happen. So I joined NCB’s ‘Productive Families’ sewing and dressmaking course.

The Bank gave me a sewing machine as a grant. Praise be to Allah! From the beginning of my project, I was able to win the confidence of those with whom I dealt, and I was inspired to start creating my own designs.

Amal QassimAmal Collection


AlAhli Non-profit Organizations ProgramsNCB aims to fulfill a humanitarian role and achieve social cohesion, working to meet the needs of the various segments of society and supporting charities by helping them to provide their services most effectively. Three programs are designed to achieve these objectives and to foster a culture of voluntary work.

AlAhli Charity Organizations

Program

AlAhli Voluntary Work

Program

Saudi-INJAZ Program


AlAhli Charity Organizations ProgramThis project is a part of NCB’s on-going financial support for licensed charities.

Over the years, the activities of this program have maximized efficiency in the distribution of donations, from setting up donation rules to designing the decisions schedule, allocating the amounts, and developing donation criteria.

Objectives

• To continue and develop NCB’s support for charities

• To help charities carry out their role in serving the community, and to develop these services in line with community needs

• To provide financial aid by cooperating with charities to provide their services in the form of innovative products that meet community needs.

Strategic partners

• Ministry of Social Affairs

• Ministry of Islamic Affairs

2013 achievements

456 charitable societies and organizations were supported in 182 cities and villages across the Kingdom.

“We all have a religious and moral duty to help those less fortunate than ourselves, and fulfilling this obligation can be humbling yet very uplifting.”


The Disabled Children’s Association is highly appreciative of the time and effort devoted to the organization by NCB, which contributes so freely to benefit young people whose needs are so much greater. We all have a religious and moral duty to help those less fortunate than ourselves, and fulfilling this obligation can be humbling yet very uplifting.

Humbling in the sense that it makes us more appreciative of how blessed we are to have full use of our faculties, and uplifting in the inspiration that comes from the courage and positive attitude shown by children in coping with the difficulties imposed by their disabilities.

Disabled Children’s Association


Education is a key pillar on which nations develop and their people achieve distinction. A successful education system is characterized by its ability to bridge the gap between its output and the private sector’s requirements.

Through NCB’s partnership with INJAZ-Saudi Arabia, three work streams are provided: training, motivation, and voluntary work. Programs include:

• Entrepreneurship: Entrepreneur Master Class (secondary education)

• Preparedness to enter the labor market

- Leadership Program (intermediate education)

- Friends of the Earth (primary education)

• Financial culture: Personal Economics (intermediate education).

Objectives

• To continue NCB’s support for distinctive education initiatives

• To contribute to developing students’ knowledge through non-traditional, innovative curricula

• To give students the opportunity and motivate them to put INJAZ-Saudi Arabia programs into practice

• To create opportunity for students to experience the enjoyable outcome of collective work

• To train students in entrepreneurship, preparedness for the labor market, and financial culture.

Strategic partners

• INJAZ-Saudi Arabia

• Ministry of Education

• Ministry of Higher Education.

2013 achievements

More than 27,455 students were trained as a part of INJAZ-Saudi Arabia through 803 courses in 357 schools in 16 provinces around the Kingdom.

INJAZ-Saudi Arabia Support Program


Shahd Al-Sulaimani

Shahd is a secondary education student in the 27th school in Jeddah that participated in the Company Program. Under her management, the student-run ‘Catalyst’ company produced a beach bag that converts into a towel. “Now, I have a clear vision for the world of business and trade, as I turned from being a student into a business woman,” said Shahd.

The success of Catalyst illustrates NCB’s aspiration to create up to 1,000 student-run companies, enabling them to convert their ideas into creative projects and businesses that can help to advance economic development in the Kingdom.

“Now, I have a clear vision for the world of business and trade, as I turned from being a student into a businesswoman.”


This program aims to capitalize on NCB employees’ skills and capabilities by encouraging them to contribute to voluntary work.

Among the activities were:

• Visits to orphans providing Iftar meals and distributing gifts to the orphans at the Iftar tent organized by the bank

• Visits to patients at hospitals

• Renovate some public parks.

Objectives

• To encourage the concept of voluntary work in the community

• To foster the concept of citizenship and individuals’ contribution to sustainable development of the community

• To form a voluntary team from the Bank’s staff to be a model for other private sector employees

• To engage employees in community service.

Strategic partners

• Charitable sector and non-profit organizations

• INJAZ-Saudi Arabia.

2013 achievements

In 2013, 174 NCB employees joined the AlAhli Voluntary Work Program and contributed a total of 2,022 hours’ voluntary work.

AlAhli Voluntary Work Program

“This program gave me the opportunity to explore areas in my city that inspired me. It made me look at life from a different perspective.”


Bodour lbrahim

My participation in AlAhli Voluntary Work Program was among the most important tasks I have undertaken, using my experience and skills in a way that benefits the needy, the sick, and orphans.

It also gave me a sense of comfort by helping others and fulfilling my religious duty of doing good deeds and being rewarded by God for them, as well as playing a positive role within my community. In doing so, I now also have a better appreciation of the blessings that God Almighty gave me, and how to maintain these blessings and gifts.


Employees

Talent acquisition

The Bank adopts a scientific approach to recruitment, ensuring suitability for the position to be filled by assessing candidates on specific capabilities related to the vacancy such as skills sets, initiative, logical thinking, and personality.

Mandatory assessment has been implemented for all new hires, segmented according to job level, and using best-in-class psychometric tools. This ensures that we enhance the quality of our recruits, gain a good reputation in the employment market, and sustain our efforts to be an employer of choice. We have also completed new recruitment policy and procedures, and conducted up-skilling activities including targeted selection interviewing and assessor certification.

Policy and structural changes implemented in 2013, such as the moratorium on back-office hiring, have led to slower recruitment compared to last year, but provided focus on front-line hiring and other incremental development activities. Structural changes in the business have also resulted in re-allocation of recruiters’ responsibilities, with the On-boarding Unit transferred to the Employee Services Department.

Rowad AlAhli

Rowad AlAhli is a new program to prepare future leaders in the organization and has evolved from the Associates CAP/MAP/TAP programs. It targets college and MBA graduates aged 22 to 29 and is applied at corporate level rather than individual business units, aiming to produce professional bankers. Intensive training focuses on general banking know-how and technical knowledge, accompanied by comprehensive mentoring by senior managers.

Sophisticated assessment procedures, including business simulation exercises, determine selection and placement for the program, accurately evaluating participants’ capabilities, attitudes, behaviors, and aspirations, and helping to shape their development plans.

Talent management

NCB’s talent management program has created a central corporate pool of talented staff and is linked to succession planning, balancing the Bank’s needs with employee ambitions. It is also reducing the attrition rate, down from 20 percent to 9 percent, while creating a pipeline of proven ability that can be deployed to the most appropriate positions based on suitability and scientific assessment of performance and potential.

The Opportunity Program

This internal job-posting platform helps to facilitate the mobility of talent across the Bank and prioritize internal staff over external candidates in filling job requirements, while realizing other benefits such as lower recruitment cost, faster recruitment turnaround time, and higher levels of employee engagement. The program is implemented with a best-in-class IT solution, solid branding, and complete marketing and communication plans.

Listening to our people

People at all levels have contributed to the changes taking place at NCB. In mid-2013 the Bank-wide ‘My Voice’ employee survey – which achieved a 77 percent response rate – revealed eight main priorities. Underlining the importance that we assign to human capital as a prime strategic asset, we took immediate action on fairer incentive-based compensation, salary adjustments, and employee benefits. The remaining actions are being incorporated in 2014 plans, and have been assigned to the relevant areas of the Bank for implementation.

Another Bank-wide survey is planned for 2015 to validate the success of identifying priorities and implementing response.


Recognizing and rewarding achievement

NCB seeks to build a robust performance culture by effectively managing the cycle of goal setting, mid-year reviews, and year-end assessments. To drive the performance discipline, NCB ensures that the performance management system includes components such as a shared responsibility between manager and employee on setting clear annual performance objectives for each employee, and communicating these objectives throughout the performance cycle.

Largely as a result of the Bank-wide ‘My Voice’ employee survey, changes during 2013 included reducing employee loan charges to just 1 percent, with the maximum amount available increased to SR 3 million. Modifications also resulted in an automated monitoring process based on factors such as performance appraisal, potential, and comparison with the wider Saudi market. Special attention was paid to female employees, who received new benefits including a higher transport allowance, annual clothing allowances, and childcare allowances for those with pre-school children.

Supporting career development

NCB is currently revising training programs and tools to provide the right training for the right person at the right time, supporting employees to build their own lifetime career development. This principle aligns with NCB’s ‘employer of choice’ strategic pillar, and is being implemented through the creation of online training academies for each of the organization’s business lines.

Each academy will have learning and developmental resources, such as a training curriculum for every business function from junior level to advanced management, accreditation programs, annual training schedule, new training initiatives, e-learning courses, digital library, and motivational speeches by business seniors.

Talent Resourcing and Development Department is also using new training modules such as New Hire for Branches, Rowad AlAhli, E-Learning, Digital Library, and Leadership Skills. The new approach relies more on building internal training delivery capability. Fields include sales and service, leadership, and corporate credit.

Several development-related objectives were achieved during the year. These included training 12 in-house recruiters in targeted selection, and certifying 8 redeployment (Kafa’at) assessors, 11 selection assessors in abilities testing, and 10 in personality questionnaires.


The environment

NCB observes the ISO 14001 standard that specifies requirements for the Environment Management System (EMS) in the Head Office, Riyadh Regional Building, and Al Dana Building in Dammam. An assessment visit by the British Standards Institute in 2013 checked that the requirements of the management standard were being met. The findings demonstrated that the Bank is serious about its environmental responsibilities, illustrating how ISO 14001 gives NCB a methodology to meet its EMS and environmental policy commitments. By implementing the standard, the Bank also aligns its strategy with national priorities in managing and reducing energy demands, water conservation, and pollution prevention.

Branch energy audits – In 2013 a detailed branch energy audit covered 28 branches and two main buildings, identifying ways to enhance energy performance. As a result, we installed active energy efficiency solutions in two branches as a pilot scheme. Performance improvements will lead to lower energy and operational costs.

NCB emphasizes water and energy conservation by reducing emissions, minimizing waste, and adopting sustainable methods and materials in the design of new buildings.


Solar water heaters – during 2013, NCB installed 15 solar water heaters in branches in the Central, Northern, and Eastern regions, making them less dependent on mains electricity. By the end of 2015, when installation is completed, we estimate that each heater will result in average annual energy savings of 1,728 kWh. With four boilers in each branch, annual savings per branch could reach 6,912 kWh – equivalent to SR 1,797 per annum.

Sun-proof window film – sun-proof window film was installed in 20 branches during 2013, resulting in lower energy consumption, reduced UV rays, and extending the life of furniture.

Air curtains – air curtains were installed in 20 branches during 2013. This has reduced energy costs, enhanced indoor air quality, prevented insects entering, and helped to maintain branch temperature.

Power factor correction – NCB is one of the first Saudi banks to follow the government directive to rationalize the use of electricity by using power factor correction. Power factor correction is a measure between 0 and 99, where 99 means the most effective use of power. A low factor can be improved by having a power factor correction unit installed to improve the hidden running costs of motors and other inductive loads.

As a major energy user, NCB will benefit from the equipment, which should pay for itself by reducing energy costs.

LED lighting (light-emitting diodes) – replacing incandescent bulbs with LED protects the environment and saves money. LED lights last 10 times longer and use nearly 80 percent less energy than incandescent bulbs. They are extremely efficient and long lasting.

Improving environmental awareness among staff

Earth Hour and World Water Day

For the fourth successive year, NCB took part in Earth Hour, a global event that raises awareness of environmental issues. We joined people around the globe to express solidarity with the planet by switching off lights in three main buildings and five other facilities across the Kingdom for an hour.

We also took part for the second successive year in World Water Day, a particularly important event for the Kingdom, Our 2013 efforts centered on raising the awareness of NCB employees through tips on water conservation and facts on water consumption. We also distributed reusable shopping bags to all employees, encouraging them to reduce the consumption of plastic bags.

World Environment Day – Children’s Environment Day

World Environment Day, first held in 1973, stimulates awareness of the environment and enhances public action. Participating in such eco-friendly events raises awareness of environmental issues among our employees, customers, and the community.

We invited employees’ children (aged 5-14) to celebrate the event Be’aty Sadeqaty for the second year, in line with the World Environment Day Think.Eat.Save theme. Fun activities reconnected children to natural resources, the importance and benefits of recycling and reducing waste, and the magnitude of everyone’s role in preserving the environment.

Environmental procurement

A formal policy ensures that NCB’s procurement practices reflect environmental sensitivity. The Bank continues to update screening criteria to improve effectiveness in sourcing products and services from environmentally sustainable vendors. A new proposal form introduced in 2013 means that sustainability measures are evaluated for all suppliers.


NCB’s Corporate Responsibility strategy for the future

– Planned 2014 beneficiaries: 800 ladies

Handicraft training

– Training will focus on five handicrafts using the best training courses with high-quality curricula.

Micro loans

– Financing families to start their production lines.

Product marketing and point of sale

– Completing the productive families cycle by helping to market the families’ products and secure sales outlets.

– Planned 2014 beneficiaries: 350 youth

Entrepreneurs’ training

– Young people will be provided with high-quality training courses, enabling them to establish their own businesses. How to Start Your Small Business will benefit 200 young men and women, and How to Start your Home-Based Business will benefit 150 young women.

– Planned 2014 beneficiaries: 100 orphans

Healthcare support

– Medical insurance.

Education and skills development

– Educational card to help purchase stationery

– Building (Binaa) program (English language and computer courses and self development skills)

– Talent program (summer).

Monthly allowance

– Provide a fixed monthly allowance to cover personal needs.

‘Empowerment’ is the main theme and focus of NCB’s community activities in 2014, which will be implemented in three main areas:

Productive Families

Small Businesses

Orphans


Custodian of the Two Holy MosquesKing Abdullah Bin Abdulaziz Al Saud

HRH Prince Salman Bin Abdulaziz Al SaudCrown Prince, Deputy Premier and Minister of Defense

HRH Prince Muqrin Bin Abdulaziz Al SaudDeputy Crown Prince, Second Deputy Premier, Advisor and Special Envoy of the Custodian of the Two Holy Mosques

1 Highlights of 20132 A special position of trust4 NCB’s heritage of community service

6 AlAhli job opportunity programs14 AlAhli non-profit organizations program22 Employees

24 The environment26 NCB’s Corporate Responsibility

strategy for the future Designed and produced by Origin Communications Group

Empowering our community

Verified by:

The National Commercial Bank

Corporate Responsibility Report 2013

The National Commercial BankPO Box 3555, Jeddah 21481

Kingdom of Saudi Arabia

www.alahli.com

po box 3555, jeddah 21481 report 2013€¦ · po box 3555, jeddah 21481 kingdom of saudi arabia ....

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