Introduction
Large corporations may be only a small percentage of businesses in the
United States, but they make most of the money. They have a great impact on
society, and can use that impact to do good things for the world in which they
operate. This is one of the reasons why corporations integrate corporate
responsibility into their business models. Corporate responsibility is the deliberate
inclusion of public interest into corporate decision-making: companies want to
promote the public interest by developing the community and avoidance of
practices that harm the public, even if it is legal.
Social or corporate responsibility reports are a written statement of what a
company promises to do when it comes to their part of keeping this world a good
place to live. I chose to do my report on JPMorgan because recently there have been
many questions surrounding the morality and ethics of banks in the United States,
following the meltdown of several big banks, taking their customers with them. It
seems that these days banks should take special care when composing their social
responsibility reports, and I am curious to find out what the image is that a company
under more scrutiny is showing to the world.
JPMorgan Chase & Co.: some facts
JPMorgan Chase & Co. (JPMorgan) is a leading global financial services firm
that operates in more than 60 countries. The company is worth 2.2 trillion, and its
main operations are investment banking, financial services for consumers, small
business and commercial banking, financial transaction processing, asset
management and private equity. The company evolved from the merging of several
big companies over the years, but originated in 1799 in New York City as the
Manhattan Company. Today, more than 225.000 people are employed worldwide,
5000 branches serve customers in 23 states, and on average more than $10 billion
in taxes is pays a year to the U.S. government.
The Corporate Responsibility Report
Messages from the CEO and Head of Corporate Responsibility
The first part of the report consists of messages from the CEO and the Head
of Corporate Responsibility. The CEO starts off with a description of the company,
and continues about the way it has contributed to charities around the world. Then
he talks about the public service duty they feel towards their customers, in these
hard times. It Is not just about the service of shareholders, but also about helping
out customers when times are difficult.
After that, the Head of Corporate Responsibility talks about the report itself,
how it is a supplement to the more extensive report published last year, with
emphasis on the efforts that are taken to help customers in the financially hard
times.
Lending Responsibly
As this economic crisis is fuelled by a mortgage and credit crisis, a large bank
can be one of the major partners in trying to get the world out of this crisis.
JPMorgan Chase understands this, and has many ideas to do their part. First, the
company shows hoe big a player they are in the mortgage and credit market: it lists
the amount of dollars it lent to consumers, businesses and government
organizations. Then it mentions the public debate around lending, and how the
company thinks it is still lending in a safe and sound manner. Proper precautionary
measures have to be taken in order to avoid catastrophes that have brought
consumers, businesses and other lending institutions down. JPMorgan Chase
actually helped other banks out where it was requested by the government. Next to
this, they highlight how they work with and not against customers through financial
difficulty with their credit cards, mortgages, businesses, investments and
communities. For an example, the bank has increased contributions to programs
offering foreclosure prevention. It is estimated that more than 650.000 families will
be helped by the end of 2010, with initiatives like creating an independent review
process, adding mortgage advisors, reaching out to customers who are at risk of
falling behind, supporting the Obama administration in its efforts to provide
workable loan modifications and more. Next to this, charity money is given to
initiatives that prevent foreclosures.
Finally, the company is helping out the people that are hit hardest or at the
highest risk to be hit hard by financial difficulties due to borrowing and credit, by
commitment to community lending and investment, promoting financial literacy
(outreach and education), and encouraging volunteerism and philanthropy (in
volunteer grants as well as employee service).
Environmental Sustainability
The company’s goal is to make a positive contribution to sustainable
business practices by integrating environmental principles into the business model.
Clients are helped to address the challenge of climate change, and the company itself
is trying to increase energy efficiency and reduce greenhouse gas emissions.
Some highlights in the report are the joining of the Together campaign
(companies united to help consumers reduce waste, like paperless banking
solutions), investment in renewable energy projects, the acquisition of ClimateCare
(low-carbon technology), adoption of the Carbon Principles (they take care not to
finance any projects with a big carbon footprint, like coal-fired plants), and the
review of transactions to evaluate adverse environmental and social impacts (like
mining or forestry, the transactions are categorized in potential of adverse impact).
Furthermore, the company kept track of their own energy consumption, and
from the numbers it is clear that since 2005, the numbers have been decreasing.
CO2 emission, energy consumption, water consumption and waste generation all
went down by several percents.
Finally, the company increased recycling, continued to implement energy-
efficient data centers, engaged their employees and communities in environmental
friendly thinking through sponsorship and initiative of several projects and
participated in the Carbon Disclosure Project.
Support for People and Diversity
Approximately 225.000 people are employed at JPMorgan Chase in more
than 60 countries, and this diverse workforce has a variety of needs. The company
has programs available for workplace flexibility, wellness, child and elder care,
career development and more. It also supports employees and their family
members’ health by introducing CareAllies, which helps people with health
problems. Health care coverage is also provided. This way, the company wants to
make sure everyone stays healthy.
JPMorgan Chase believes in reflecting the worldwide customer basis, which
means employing people with different perspectives and backgrounds. Almost 40%
of its employees are classified as People of Color, and the company is making an
effort to recruit people with help of associations like the National Black MBA
Association and the Association of Latino Professionals in Finance and Accounting.
Specific programs for women were also launched, and a women’s networking group
(WIN) drew more than 1000 participants. All networking groups are helping lines of
business to reach their diversity goals.
In addition to this, JPMorgan Chase is a leader in supplier diversity.
Businesses that are owned by for example women, minority groups or people from
the LGBT (lesbian, gay, bisexual and transgender) group made up for a $1 billion
spending mark. Several organizations helped them to reach that goal; an example of
one of these organizations is the National Minority Supplier Development Counsil.
Awards and Recognition
At last, JPMorgan Chase lists its awards and recognitions. A couple of
examples are: The Worlds’ Most Influential Companies (BusinessWeek 2008),
Number 1 Company for Recruiting and Retention (DiversityInc Magazine 2008), Top
Companies for Multicultural Women (Working Mother magazine 2008), and Top 10
Companies for Best Places to Launch a Career (BusinessWeek 2008).
And finally, the company gives its contact information, for everyone who
wants to communicate about the Report or anything else with the directors or office
of Corporate Responsibility.
Conclusion
As companies are a very large part of society, and thus have a great impact on
society, they have the choice to have a positive impact. Individuals usually don’t
have much power to change things, and companies have the resources and
manpower to actually push the world in the right direction, when it comes to the
economy, social health and environmental health. JPMorgan Chase seems to do a lot
to make this world a better one, and at least seems to have the right mindset.
However, I do believe that people will be people, and they tend to choose the easier
and more profitable ways, which are not always the right ways. Guidelines are not
always followed, and I am quite sure this is also the case at JPMorgan Chase
sometimes. But it is good to at least have the guidelines, and be able to refer to it
when people get a little lost when doing business. It can serve as a reminder of how
to be responsible for a better world, as an individual within a company, and as a
company as a whole. Also, involvement in charitable projects shows a positive image
to the community, and this can be a great marketing tool. It can show a corporation’s
human, friendly face, and that can go a long way in public relations. And last but not
least, when a company treats its employees well, the employees will be more
productive, which is in the end better for the company.