UN GLOBAL COMPACT PROGRESS REPORT 2014.
1 About us: In 2014, Komercijalna Banka AD Beograd continued successful operations in the Republic of Serbia and the region. In addition to Komercijalna Banka AD Beograd, the bank group also includes Komercijalna Banka AD Budva (Montenegro) and Komercijalna Banka AD Banja Luka (Bosnia and Herzegovina). Komercijalna Banka offers a full range of banking products and services to individuals as well as companies. There are over 1.3 million active accounts and over 900,000 satisfied customers. Our vision: We are the leading bank in the country and the region, which contributes significantly to economic development, quality of life and overall prosperity of the people, the making and acceptance of progressive values in all fields of regular and creative work. Our mission: We are a strong and reliable financial institution, respected financial brand, with a leading position in key business segments. We offer our clients support through modern, innovative and tailormade banking products with the best quality service. We follow the highest international standards and values in providing financial products and services. We contribute to economic development and economic prosperity of the Republic of Serbia and the countries in which we operate.
2 Introductory statement by Ivica Smolić, President of the Executive Board of Komercijalna banka AD Beograd in the Global Compact Report for 2015 President of the Executive Board Ivica Smolić Since 2007, when it signed the UN Global Compact, Komercijalna Banka supports the principles of the Global Compact. We remain loyal and committed to the principles set out, so, in 2014, we continued to develop our activities in the field of human rights, labour, environment and anticorruption. We continued to promote and develop greater environmental responsibility and to participate in socially responsible projects in 2014, too. As in previous years, we have given special attention to the education of employees. We still advocate the position and perception that our clients, partners and all other stakeholders from the social milieu that we contact with, are the part of the same family, the family of Komercijalna Banka, and we still nurture all the values that are priorities in the system of values of socially responsible people and companies. Consequently, we decided to continue to foster, develop and promote all the principles of the UN Global Compact in 2014, believing that many other companies will begin to follow our example, and the example of other members of the Global Compact.
3 The ten principles of the Global Compact of the United Nations United Nations Global Compact seeks to promote the ten universally accepted principles in the areas of human rights, labour, environment and anti-corruption. The protection of human rights, where businesses should: Principle 1: support and respect the protection of internationally proclaimed human rights; and Principle 2: make sure that they are not complicit in human rights abuses. Protection of labour rights, where businesses should: Principle 3: uphold the freedom of association and the effective recognition of the right to collective bargaining, Principle 4: uphold the elimination of all forms of forced and compulsory labour; Principle 5: the effective abolition of child labour; and Principle 6: the elimination of discrimination in respect of employment and occupation. Protection of the environment, where businesses should: Principle 7: support a precautionary approach to environmental challenges, Principle 8: undertake initiatives to promote greater environmental responsibility; and Principle 9: encourage the development and diffusion of environmentally friendly technologies. The fight against corruption: Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery.
4 Protection of human rights Komercijalna Banka fully complies with the principle of human rights protection, i.e. supports and abides by the protection of the internationally recognized human rights to the letter (principle 1), and does not involve in any kind of human rights violation (principle 2 of the UN Global Compact) In addition to respecting and protecting human rights, in Komercijalna Banka the special attention is paid to the safety and health at work. The Committee on Safety and Health at Work continued with the implementation of staff training in the field of health and safety at work in 2014, according to the training program. Injuries inflicted at work and steps taken in connection with the injuries were properly recorded. We conducted the procurement of protective equipment for employees in accordance with the enactment on the risk assessment. In accordance with the protection of employees who spend most of their working hours working with computers, the Bank provided general and targeted eye examinations for those employees. For all questions of employees regarding the implementation and interpretation of the provisions of the Labour Law, the Law on Gender Equality, Law on Prevention of Discrimination and the Law on Prevention of Harassment at Work, the Law on Vocational Rehabilitation and Employment of Persons with Disabilities... as well as any complaints and objections, adequate responses were given from the Division of Legal Affairs - the Department of Legal and Labour Affairs and Department of Human Resources.
5 Protection of labour rights of employees Komercijalna Banka fully supports freedom of association and the effective right to collective negotiation (Principle 3), the elimination of all forms of forced labour (Principle 4), the prohibition of child labour (principle 5) and the elimination of discrimination in respect of employment and occupation (Principle 6). In enforcing the labour rights, Komercijalna Banka refers to the Labour Law of the Republic of Serbia. Labour law is consistent with the conventions and recommendations of the International Labour Organization, which were ratified by our country, and it contains all of the standards and norms that guarantee the rights, protection and working conditions of employees, defined by the conventions and recommendations. Also, the Labour Law incorporated the directive of the European Union, thereby creating the conditions in which employees can exercise their rights in accordance with international standards. The Bank supports freedom of association and the effective recognition of the right to collective negotiating through the work of independent trade union of Komercijalna Banka AD Beograd. Collective rights of employees refer to the right of association, the right to form trade unions, the right to negotiate collectively, the legal conclusion of a collective agreement, the right to information, the right to express their views on important issues related to labour, the right to consultation, the right to participation the right to peaceful resolution of collective and individual labour disputes and the right to collective action. The negotiations were carried out with the Independent Trade Union of Komercijalna in 2014 that resulted in the new draft of collective agreement, which shall come into effect early next year. Komercijalna Banka remains committed to the principle of 4, and does not apply to any form of forced or compulsory labour. The Bank has never been sued, accused or convicted of forced or slave labour. In accordance with the Law on the Prevention of Harassment at Work the Anti-Mobbing Law, it has been prohibited and punishable to exercise
6 abuse, sexual harassment and abuse of the right to protection from abuse. All employees are properly informed about their rights and obligations and responsibility of the Bank. All necessary information is always available on the website of the Bank, and every employee has also received the written notice thereof. At the same time, Komercijalna Banka fully supports the prohibition of all forms of child labour and does not employ persons under 18 years of age (although the Labour Law in certain cases allows employment to persons under 18 years of age), and it also does not cooperate with companies that employ workers under the age of 18. The age structure of employees of Komercijalna Banka in 2014: Overview of Komercijalna Banka employees by age Age range Up to 30 31-40 41-50 51-60 Over 60 Total 31.12.2014. 184 1131 723 817 51 2906 Komercijalna Banka is fighting against discrimination in respect of employment and occupation by acting in accordance with the provisions of the Labour Law, Law on Gender Equality and Anti-Discrimination Law. The structure of employees of Komercijalna Banka by gender in 2014: Overview of Komercijalna Banka employees by gender Gender 31.12.2014. Women 2.116 72.81% Men 790 27.19% Total 2.906 Training of employees The Bank continually invests in training and development of employees, considering them as its most important resource. Development activities
7 in 2014 indicate a continuation of qualitative and proactive approach to the implementation of training, based primarily on: Identification of the training needs and adapting the contents of trainings Design (adaptation of the contents) and realization of internal trainings Organisation of internal and external trainings Measuring the training quality Strengthening the relations with other organisational units of the Bank Improvement of the training quality and process During 2014, a total of 202 different trainings were organized, which were attended by 3,303 participants. Of the total number of employees of the Bank, 1,682 employees (58%) underwent trainings. There is a noticeable increase in the number of employees who underwent training compared to the last year, when the proportion was 56%. When implementing the trainings, the emphasis is placed on the qualitative improvement of the training content and implementation methods, in accordance with the objectives of certain business functions. In this regard, we directly cooperated with the competent employees / managers when designing a specific training (internal and external) in order to adapt the content; prepare concrete examples, aimed at having the "custom-made" realization of trainings. Also, the presence of managers from the business functions at specific trainings was of paramount importance to raise awareness about the importance of training, as well as building better relations. All realized trainings had a precisely defined organizational goal (what is the training objective?), associated with the strategic and business objectives of the Bank. Observed by training s theme, we held: Professional trainings aimed at acquiring the new knowledge and improvement of the existing knowledge of the employees in the field of work they are doing in their organizational unit -in 2014, such trainings were attended the largest number of
8 participants, 2,922, accounting for 89% of the total number of participants. The so called skills trainings that aim to improve certain skills required for successful work and attended by 279 employees (8% of the total number of participants). Technical trainings, aimed at improving the operational knowledge of employees, attended by 102 employees, which represents 3% of the total number of participants in training. 2397 525 140 77 139 al 25 Professional Skills al Technical ern Ext ern Int Number of participants in trainings according to lecturer and types of training Work Experience Internship in Komercijalna Banka In cooperation with colleges and schools throughout Serbia, the HR Department organised student internship in Komercijalna banka. In 2014, 238 students did the work experience internship in Belgrade, Niš, Novi Sad, Subotica, Kragujevac, Novi Pazar, Požarevac, Loznica, Čačak, Blace. Work Experience Internship Agreements were concluded with 8 colleges and 12 high schools. Internship lasted up to 10 days in smaller groups, and resulted in an excellent communication between the Bank's mentors and interns. Students finished their internship with positive experience, since practical work aims to improve their ability to successfully apply vocational knowledge and methods in given practical situations, and to contribute
9 to the more intensive connection between the theory and practice. Stimulus to master the profession and motivation to do similar jobs are expected as the retroactive effect of the contact with professional practice. Komercijalna Banka has also been active in the National Bank of Serbia Working Group for Social Responsibility in banking and finance, being involved in the project Banking Officer relative to the education of students and professors and the professional practice for the students of suitable high schools. Environment protection Komercijalna Banka seeks to responsibly support a precautionary approach to the environmental challenges (Principle 7), promote greater environmental responsibility (Principle 8) and encourages the use and development of the environment-friendly technologies (Principle 9). In order to stimulate the use and development of the environment-safe technologies, Komercijalna Banka specifically promoted the energy efficiency loans in 2014.
10 The project of printing optimization was finished internally in Komercijalna Banka in 2014. We introduced the new printers having the following key advantages: Double-sided printing, to reduce paper consumption; Recycling toners; Saving electricity. The printers were introduced in all commercial buildings, offices and branches, printing have been centralized, leading to significant savings in electricity and paper. The old printers, which were replaced through this optimization, as well as all used computer equipment in Komercijalna Banka, are donated to the institutions across the country after being repaired. Hundreds of our computers and printers can be found in a number of primary and secondary schools, health and humanitarian organizations, local administration... The recycling boxes were set up throughout the Bank, thus separating paper, plastic and glass. The boxes can vary in colour, and have the name and display of items that are recycled, as well as the universal symbol for recycling.
11 Fighting corruption Komercijalna Banka has been active and successful in combating all forms of corruption, i.e. it abides by the 10 UN Global Compact Principles. In fighting all forms of corruption (principle 10), Komercijalna Banka invokes the new Code of Conduct Code of Conduct and Professional Ethics, recommended by the EBRD (passed in 2010), which expressly prohibits corruption and fraud. In the fight against corruption, the Bank implements strict control of all processes, careful selection of employees, suppliers, partners and customers. The issue of corruption is also regulated by the Procedure on conduct in case of fraudulent acts, given that, as a form of fraud, it also regulates the conduct in case of giving or accepting bribes. In this way, we regulate the internal control of the Bank in terms of the detection and prosecution of fraudulent acts and the Procedure is being applied in all organizational units of the Bank and its subsidiaries, members of the banking group. There were no cases of corruption reported in 2014 either.
12 Komercijalna banka, UN global compact principles and corporative social responsability Komercijalna Banka persists in the implementation and compliance with the United Nations Global Compact Principles: In addition, Komercijalna Bank proved itself as a socially responsible company in 2014 as well: - It opened the doors of its gallery space, KOMBANK ART HOL, and made it possible for the students and post-graduates of the Applied Arts Faculty to organize their first exhibitions and show their works of art, - It donated over 22 million Dinars of the financial help to people affected by large spring floods during the first half of 2014, - It collected and donated equipment of almost 19 million dinars in value to the maternity hospitals throughout Serbia, as part of the humanitarian action Together for Babies, - It helped the national basketball team, Milica Mandić and Ivana Španović on the road to European and World medals, and - It supported numerous socially responsible project in the local environments where it does business, Thereby showing the responsibility, not only to the customers, employees and business partners, but also to the community it belongs.