Corporate Social Responsibility
and how it creates additional
value to a company reputation
Swati Patel
Head of Corporate Citizenship, EMEA
Citi
March 6, 2008
Citizenship

Also known as corporate social responsibility (CSR),
sustainability, corporate citizenship, triple bottom line

We’ve agreed to call it citizenship
“Citizenship is the positive impact that Citi has on society
and the environment through its core business activities, its
philanthropy, volunteerism and public policy engagement.”

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Requires a record of achievement in economic, social and
environmental areas
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Citizenship: A Multi-Stakeholder Process
The Complex Web of Key Stakeholders
Share Price
Performance and
SRI Investors
Employer of
choice
Community
Shareholders
Employees
Export
market
Regulators
Government
Company
Financiers
NGOS
Insurers
Conscious
Consumer
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Media
Clients
Brand and
Reputation
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There are Two Major Ways we Convey our Leadership
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Our business
practices
Our proactive
citizenship
Programmers
E.g.: Equator
Principles,
environmental
footprint
E.g.:the Citi
Foundation,
community
programmes ,
volunteerism
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Our Business Practices
Climate Change & Sustainability
$50bn commitment over the next 10 years

Citi was one of three companies to establish
these principles four years ago to create
higher standards in project finance
– Citi committed to 10 guiding principles,
for example, not to lend to projects
where the borrower cannot comply with
environmental and social policies
– Today there are 33 signatories who
represent 80% of all project financing
world-wide

Being a leader in this field, gives Citi a
competitive edge in assessing
environmental and social issues and
thereby winning client mandates

In Greece, Citi has launched an innovative
investment product which allows investors to invest
in renewable energy

Clinton Climate Initiative (CCI) to implement the
new Energy Efficiency Building Retrofit Programme
in partnership with large city Governments

Established Leadership in Energy and
Environmental Design (LEED) certification as a
target for all new operation centres and offices

Conduct equity research related to climate issues
that helps inform investors on risks and
opportunities associated with the issue. Citi
Investment Research issued 70+ climate related
notes in 2006
Carbon Principles
 Applicable to US utility companies finance for
fossil-fired generation – 200 MW
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Our Proactive Citizenship Programmes
Citi Foundation – 3 Pillars of Engagement
2006 Citi Foundation
giving totalled $91 million
•
•
•
•
•
Microfinance and Micro Entrepreneurship – helps individuals to become
economically self sufficient
Small and Growing businesses – leading to economic expansion and job
creation
Education – prepare young people for personal and professional success
Financial Education – helps individuals make informed financial decisions
Environment – focus on sustainable enterprises that generate jobs and stimulate
economic growth while preserving the environment
Community Programmes
Volunteerism
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EMEA: Citi Foundation Focus
Sweden
Russia
Nordics: focus on Job
Creation

Focus on youth
education for the
world of work
Stockholm School of
Economics
UK
Romania
Focus on employability
of youth

UK CAF, JA, BRAC
Cittadinanzattiva

Junior Achievement
Poland
Strong focus on
Financial Education

Junior Achievement
Focus on Microfinance
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
Hope Worldwide

LEAP Africa

Assoia Ovidu Rom

Helenic Children’s
Museum

Lambrakis
Foundation
Turkey
Focus on Fin Ed and
microfinance for
women

“ My Finances”
Nigeria
JA Romania
Greece
Focus on young people


Access to education for
individuals at risk
Italy

Regional Universities

South Africa
Black Economic
Empowerment
Index (BEE)
Tanzania
Focus on Basic
financial education

FINCA
Lebanon
FSWW/TEGV
Jordan
Middle East Focus on
Higher Education

Jordon River
Foundation
Access to university
education

SOS Children’s
Villages
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Community engagement in Russia
Focus Media / Citi Intern Programme

In partnership with Focus Media working with 3 universities and 30
Charities/NGO’s in: St Petersburg, Nizhniy Novgorod, Yekaterinburg

Project Goal : Provide an opportunity for 100 university students to understand how
a charity/NGO operates . At the same time enabling the students to develop skills
like:
leadership, budgeting, planning.

Out comes- Community:

30 Charities better equipped to support the needs of the local community

stakeholders like corporations and local and national government will better
understand the needs of the local community.

Which in turn will Increase the NGO’s capacity to work with young people

Outcome - Individual:

Developing their skills through active engagement in the Community

Prospect of a career in the NGO sector
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Financial Education
In 2004 Citi made a 10 year, $200 million global commitment to financial education.
To date Citi has invested nearly $85million in Financial Education Programmemes in 72 countries.
In 2006 Citi Foundation contributed $26million in Financial Education
Programmes in 70 countries
South Africa
Banking on our Future – 20 Citi employees trained to deliver the Operation Hope International Banking on our Future curriculum. The
employees will deliver Financial Education based on this curriculum to students in the area of Gauteng – These students come from the
most underserved community in South Africa and this initiative enables them to learn about managing their finances – and on the road to
economic empowerment.
Russia
Financial Services Volunteer Corps (FSVC) and the Citi Foundation announced the participation of 10 bankers from Russia and Ukraine in
the seventh annual Bank Management Internship and Training Programme (BMIT), a Programme that delivers technical and practical
understanding of effective credit and operational risk management.
Bahrain
Citi Foundation grant enables physically challenged youth of Bahrain to take part in the “Citibank Diploma in Banking for the physically
challenged,” a training Programme which offered students high quality, lifelong vocational and entrepreneurship training in Banking and
Finance to meet current and future employment requirements.
Turkey
“Learning-by-doing’ Programme that teaches students how business and enterprise works. 203 students from vocational and high schools
participated in the JA Company Programme . The purpose of the project was to create awareness of the importance and need of
economical literacy and entrepreneurship on behalf of the young generation.
Poland
Kronenberg Foundation at Citi Handlowy launched a nationwide Programme called "A Week For Saving Money". The initiative is carried
out under the patronage of the Commission of Financial Supervision.
The main objective of the Programme is to promote saving money and the effective use of financial resources. As many as 270 schools
from all over Poland entered the competition for the best Polish celebration of the World Savings Day. 135 thousand students took part in
the Programme. in nationwide and regional media as well as on the Internet.
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Microfinance and Micro Entrepreneurship
Currently 2.5 billion people (40% of global population) do not
have access to basic financial services
In 2006, the Citi Foundation made 1,172 grants to support organisations that
help build and strengthen communities in 56 countries
Integra
Project Goal : to reduce poverty and discrimination among “at risk” women through the creation of
economic empowerment through micro loans and business development plans.

Out comes- Community: Better working rights for women and helping to create a social economy in
the local community
Outcome - Individual: Developing their skills through active engagement in the Community.
Prospect of a career in the NGO sector.
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Citi Micro Entrepreneurship Awards
Year of Microcredit 2005: Citi Foundation in Partnership U.N.
implemented the Global Micro entrepreneurship Awards (GMA) Programme
in 30 countries. The Programme brought substantial global attention to
the role that microfinance plays as an effective poverty alleviation tool.
In the following 2 years Citi Foundation continued with the Citi Micro
Entrepreneurship Awards
In 2006 Citi support for CMA in 23 countries $1.3 mission
In 2007 Citi support for CMA in 27 countries $1.5million
More information on the Citi Micro Entrepreneurship Awards at
www.citimicroawards.com
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Volunteerism
The Power of Volunteering Employees Around the
Globe


the campaign is focused on increasing employee
engagement across the world

Citi is working in collaboration with a number of
corporates, including KPMG and Freshfields, to
create volunteering opportunities across cities in
Europe

Business case for employee engagement: building
skills, increasing moral, team building, retention
rates.
Global Community Day
58 000 Citi employees, friends and family
members in more than 450 cities in 100 countries
participated in Citi’s 2007 Global Community Day
Volunteer Day: Permanent employees can take one
Volunteer Day each calendar year to volunteer for
organisation of their choice

Citi leading “ENGAGE” campaign:
Volunteer Incentive Programme: Employees who
volunteer 50 or more hours in a 12-month period
for an eligible organisation will be recognised –
Citigroup will contribute US$500 to that
organisation
Employer of Choice survey: “Do employees really care about Corporate Social Responsibility?” 78% of employees
would rather work for an ethical and reputable company than receive a higher salary. In competing for employees
employers increasingly need to demonstrate their CSR commitment in order to attract and retain talent.
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Conclusions
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Citizenship/CSR policies are an integral part of a company’s
responsibilities to the community and environment. Equally, however,
CSR is a business opportunity that benefits not only the community
and environment, but also our key stakeholders e.g. shareholders,
employees and NGO’s.
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Multinationals, and financial institutions in particular, given their
influence on financial flows, have a critical role to play in promoting
social inclusion.
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Citi’s CSR approach is focused on responsibility to our community, our
people and our franchise; it is part of our DNA.
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Any Questions?