TERM PROJECT 201

4
Managing World Class
Operations
Citigroup Inc - Diersi!ed "inancials
Ter# $ III
%u&#itted to $ Dr' ('D
%ardana
Date $ 24)0*)2014
(roup $ 00+
Pro,ect $
Citigroup Inc -
Diersi!ed "inancials
%- .o' .a#e Roll .o'
1 /.01R %2/RM/ 1303-004
2 /5I./%2 P/TR/ 1303-01*
3 DI56/ 0/P1R 1303-014
4 ./5EET 7/-I 1303-028
* P1.EET T/.DO. 1303-03*
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+ 5 R/M01M/R 1303-048
Table of Contents
Acknowledgement....................................................................................................... 3
Introduction............................................................................................................... 4
1. Development of the company profile in brief...................................................................5
2. Economic dimension of the performance........................................................................8
3. Environmental dimension of the performance................................................................11
. !ocial dimension of the performance...........................................................................15
". Determinants of #roduct stewardship.......................................................................... 18
$. Analysis.............................................................................................................. 21
%eferences.............................................................................................................. 23
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Acknowledgement
We woud ke to thank Dr' ('D %ardana for hs patent gudance, advce
and encouragement n earnng of the sub|ect of Managing World Class
Operation. Throughout the term we had ncredbe ncrease n knowedge
n Managng word cass operatons. We are extremey thankfu to hm for
hs tremendous support whe n competng ths pro|ect.
We woud aso ke to extend our thanks to the brary of IMT Ghazabad
whch s an ocean of knowedge and nformaton.
And nay, competng ths work woud have been dmcut wthout the
support of our cassmates (PGDM Ex 2013-14, IMT Ghazabad) whose
suggestons and vews have heped n competng ths pro|ect.
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Introduction
Dow |ones Sustanabty Index (D|SI) s prmary based on the anayss of
varous factors ke corporate economc, corporate envronmenta and
soca performance. Corporate governance ssues. Issues reated to rsk
management, brandng, cmate change mtgaton, suppy chan
standards and abour practses. The man ob|ectve of exstence of ths
ndex s to re|ect the companes that do not operate n a sustanabe and
ethca manner.
The D|SI s actuay a part of the S&P Dow |ones Indces and t practces
the corporate sustanabty assessment estabshed by RobecoSAM.
RobecoSAM s an nvestment specast whch s focused entrey on the
sustanabty nvestng. The corporate sustanabty Assessment ohers an
n-depth breakdown of nancay matera economc, envronmenta and
the soca practces, such as nnovaton or suppy chan management,
cmate strategy, stakehoder engagements and paces a speca knd of
focus on the ndustry-specc rsks and the opportuntes. Accordng to the
Goba Industry Casscaton System (GICS), RobecoSAM annuay
recognses the top company n each of the 24 ndustry segments.
Ct has been pubcy reportng on ts corporate ctzenshp and
sustanabty ehorts snce 2000. Some of Ct's recent sustanabty
accompshments ncude
Ct s engaged n $44.4 bon t date towards the actvtes that
mtgate the cmate changes t s a part of hs Ten year, $50 bon
ntatves towards cmate changes announced n 2007.
Ct has so far reduced ts absoute greenhouse gases (GHG)
emssons up to 21.7 percent from the base year 2005.
Ct has been named the rst bank n the word who s havng more
than 200 recogntons n Leadershp n Energy & Envronmenta
Desgn (LEED) certed green budng pro|ects.
Ct has so far Provded Envronmenta and Soca Rsk Management
(ESRM) advce n ts 353 cent transactons n the year 2012 and
contnung the eadershp roe va ts Equator Prncpes.
Ct has been named as the word's greenest Bank by Boomberg
Markets magazne n 2013.
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Ct has sanctoned oan amount of $340.9 mon to 38
mcronance nsttutons n 21 countres as part of ts partnershp
wth the U.S (OPIC) aunched n the year 2006.
Invested $76.5 mon from the CtFoundaton n programs enabng
1.1 mon ves.
Source: http://www.ctgroup.com/ct/news/2013/130920d.htm
1. Development of the company profile in brief
Ctgroup s a eadng goba bank that provdes consumers, corporate and
government nsttutons wth a wde range of nanca servces and
products ncudng consumer bankng and credt, corporate and
nvestment bankng, securtes brokerage, transacton servces, and
weath management. It operates va two dvsons - Ctcorp and
Cthodngs. Ct has an unparaeed goba network that enabes t to
provde word cass nanca servces and products to ts consumers. They
have been abe to estabsh themseves as the eadng goba bank for
both nsttutons and ndvduas, by budng a unque goba network, n-
depth emergng markets expertse, strong and ong astng reatonshps
and product expertse.
GCB serves over 62 mon cents across four regons - Asa Pacc regon,
South Amerca, Europe regon, the Mdde East, Afrcan contnent and
North Amerca through ts ma|or busness nes ke the Reta Bankng,
Credt Cards segment, Mortgages and commerca Bankng servces.
It can strategcay focus on the markets and segments n over 36
countres wordwde as a resut of ts goba presence and network, brand
vaue and customer-centrc products and servces that provde them wth
a compettve advantage. The GCB ams at provdng an extraordnary
experence to ts consumers by provdng servces and products that ead
the ndustry, word cass dgta channes and next-generaton reta
formats.
Credit Cards
Ct has 142 mon accounts makng t the words argest credt card
ssuer. There are two types of cards namey Ct Branded cards and Ct
Reta Servces.
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Ct Branded Cards cater to consumers and sma busnesses provdng
them wth payment and credt soutons. Ct Credt Cards am at
enhancng goba vaue for cents. They have aunched a number of cards
that provde uxury and benets to ther cents across the gobe. Ct
utzes the power of ther goba network to dever vaue, benets and
convenence to ther users. Ct has partnered wth varous arnes and
hotes provdng wordwde accessbty and easy-to-use servces. Ct
ams at becomng the words eadng dgta and bank and made
numerous ehorts n 2013 n ther |ourney to do so by ntroducng
nnovatve mobe and dgta products. For e.g. In Inda t aowed 320
mon users pay ther mobe bs through debt/ credt cards by
ntroducng a fuy ntegrated mobe payment souton.
Ct-Reta Servces provdes credt card products to retaers and ther
cents across North Amerca. They hep retaers bud and deveop
reatonshps wth ther customers by deverng ndustry nsghts and
expertse through transacton data anaytcs and ntegrated marketng
oyaty programs. Ther accounts ncude Sears, Macys and She to name
a few. It s contnung to bud reatonshp, the atest beng wth Ross-
Smons/Sdney Thomas |eweers n 2013 and has ceebrated 10 years wth
The Home Depot and Sears. Durng the year 2013 the tota purchase saes
were $75 bon and oan portfoo $46 bon.
Retail 7an<ing
Ctbank has more than 4600 reta branches across the word out of whch
neary three fourths are n emergng markets. In 2013 Ctbank, Mexco
(BAnabex) was recognzed as the Best Bank and Best Consumer Internet
Bank. Snce most of the cents transactons took pace outsde the
branches, Ct has aunched a new dstrbuton mode n whch the branch
s |ust a snge touch pont n a network that aso ncudes the tradtona
branches, the agshps, mut-functona ATMs booths and dgta
networks. In South East Asa the Ctbank Express next-generaton ATM
aowed ts cents to access a servces avaabe at any tradtona
branch.
Mortgage 7usiness and Wealt: Manage#ent
The Ct Mortgage Busness provdes home oan soutons and nance
optons and ohers counseng to cents who are unabe to pay ther
mortgage. Ct God Weath Management provdes nanca advsory and
nvestment servces whch ncude retrement soutons, bonds, stock
optons, nsurance products and mutua funds. Wth ts unparaeed goba
reach Ct Commerca Bank heped companes expand ther cent base by
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reducng endng turnaround tmes and partnerng wth companes n order
to broaden ther reach across key areas around the gobe.
Institutional Client (roup
Cts Insttutona Cents group buds astng bonds wth ther cents n
over 160 countres by provdng an array of strategc advsory and
nancng products. Ther cents ncude MNCs, oca corporatons, prvate
busnesses, pubc and prvate sector undertakngs, and successfu
ndvduas and nuenta fames across the gobe.
Capital Mar<et Origination
Cts Capta Market Orgnaton dvson focuses on rasng capta n
accordance wth the cents needs. Cts unparaeed goba reach and
vared range of nanca products makes t the rst choce for cents
underwrtng needs. Ct s a word eader for debt underwrtng n the
equty capta markets due to ts structure and executon expertse.
Corporate and inest#ent &an<ing
Each team has two parts, one s the Strategc Coverage Omcers focusng
on equty nancng soutons and mergers and acqustons. The corporate
bankers dever nanca servces and corporate bankng to cents a over
the word. Due to ther strong goba footprnt they dever product,
country and sector expertse to ther cents wherever they chose to
nvest.
Citi=s Mar<et and %ecurities %erices
Ths dvson provdes word cass nanca servces and products spannng
a broad range of asset casses, currences, sectors and products to cents
wth dverse needs across 80 countres. Wth ts strong goba network and
rea tme nformaton t provdes ts cents wth unprecedented access to
ther capta markets ntegence and aows seamess and stabe foregn
exchange rate trades and post-trade anayss toos.
Cts Investor Servces and Drect Custody and Cearng busness provdes
custom-made soutons to ther cents wordwde n order to support ther
dverse nvestment needs. They hep cents dea wth the compettve
marketpace by ssung, managng and dstrbutng nanca products.
Priate 7an<ing
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The Ct Prvate Bank has ts presence n over 16 countres. Over 800
prvate bankers are trusted advsors of the most nuenta and successfu
fames and ndvduas. They am at deverng expertse and provdng
exceptona customzed servces ensurng growth and preservaton of ther
weath. Through ther recenty ntroduced dgta app they want to oher a
persona and engagng experence. They capture the changng needs and
expectatons of ther cents by beng more transparent, open and
cooperatve.
Treasur> and Trade solutions
Ths busness vertca of Ct provdes ts cents wth trade nance servces
and ntegrated cash management to MNCs, PSUs and nanca nsttutons
across the gobe. It s a eader n provdng a personazed and nnovatve
mode of soutons to ts exstng cents through ts ncusve group of
dgta and mobe-enabed patforms, toos and anaytcs. It contnues to
expand ts ndustry-eadng eectronc toos n over 85 countres. By
aowng users to vew Cts nterna rsk ratng, avaabe credt factes
and cent transacton data t gave them an avenue to use ncrementa
trade nance and workng capta opportuntes to ther advantage.
Through ts recenty aunch app for IPad t aows access to mportant
transactona and nanca nformaton easng the decson makng and
busness management process for executves.
2. conomic dimension of the performance
Citi (roups econo#ic per?or#ance @ Decline or (roAt:B
The economc performance woud be measured on the bass of the
foowng:
/nnual Pro!t
Prot earned n FY13 s $13.7 Bon, 80% ncrease as compared to
prevous sca year.
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"inancial In?or#ation
Anayss of Companys nanca statements depcts that deposts,
stockhoders equty, book vaue per share and market captazaton
shows an ncrease and a stabe growth for comng years. Loan portfoo
growth n Ctcorp by 6%.It s observed that assets of the companes have
grown sgncanty n comparson to the prevous year. Base III Ter I
common rato, a measure of strength of a banks capta, was found to be
10.3%, far above 6% (mnmum mt set by Federa Bank). One can nfer
that Ct group has decent qudty.
"inancial Inclusion Co##it#ent
Ct has ent $9.1 Bon n FY13 to a cumuatve tota of $26.6 Bon to
enabe the sma busnesses to start and expand ther operatons, addng
|obs and turnng ther passons nto the progress. The actua gure of
$26.6 bon s actuay exceeded the panned amount of $24 bon, t s a
commtment made n the year 2011. The company pocy of nanca
ncuson ams at provdng quaty educaton to youth; educate consumers
wth nanca knowedge so that they master management technques.
Moreover, the pocy ncudes nancng of nfrastructure and housng
pro|ects eadng to a stabe nanca setup n the country.
(lo&al Consu#er 7an<ing
Ct has words best credt card portfoos whch s vaued to a whoe of
more than $7 bon n ts recevabes.Ctgroup partnered wth Ross-
Smons whch resuted n a oan portfoo of around $46 bon. Ma|orty of
revenue came from outsde US market such as Asa and Latn Amerca.
Decne n US revenue was sub|ected reatvey chaenged economc
condtons of the country. Consumer oans ncreased by 2%, card purchase
saes grew 3% and average deposts ncreased by 2%.
Mortgage 7usiness
Ths ooks after the home oans and renance actvtes. The company
ohered new oans n US of $58 bon worth n sca year 2013.The
mortgage busness of the company banks on the quaty customer
reatonshps by provdng word cass reta bankng factes n
metropotan ctes. The company ohered a supportng hand to mtary
servce members and veterans by hostng a Recovery assstance event n
Arngton, Vrgna as a part of the Ct Sautes program. The company
hosted 30 homeowner assstance events n US to educate and counse
ther cents n dmcutes and doubts regardng mortgage payments etc.
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Institutional Clients
FY 2013 marked some sgncant mestones for the company. It
successfuy executed n capta rasng requrements of ts nsttutona
cents. It heped Brtsh Arways to acqure new Arbus and Boeng
arcrafts va debt nancng .Ctgroup managed and hosted ther cent ING
US Inc. IPO (Inta Pubc Oherng) of $1.46B and secondary equty oherng
of $974M.
Corporate and Inest#ent 7an<ing
FY13 proved to be a fantastc year for the company n ths ne of
busness. It executed mutpe transformatona transactons n the
nanca markets. They managed Sprnt Nexte - Softbank Corporaton
merger. It acted as a successfu advsory n argest cross border
acquston of Nexen by CNOOC amountng to $18B.
Innoatie %trateg> I#ple#entation
Performance of the top management of the company was evauated by
tougher scorecards, whch ed to overa ncrease of return on assets,
return on tangbe common equty and operatng emcency. The company
has pre-decared strategc targets of these three parameters to be met n
FY15 .FY13 resuts are encouragng and are n ne wth set pre-decared
targets.
Ot:er Innoations
Ct has stepped n severa noovatons n dgta word. Some of them are
ke Money2 for heath, Ctbank for I pad and many more.
E#plo>ee Con!dence
A compete tranng program s conducted to enhance the nsttutona
vaues of the company and to provde ts empoyee the best cass of
workng condtons. It strengthens ther responsbe nanca atttude
towards eadng to progress of company. The company ams at hrng the
best taent avaabe at the respectve geography.
Ot:er 2ig:lig:ts
The company has utzed ts $2.4 bon of deferred tax assets n the year
2013.Ths w reduce Cts tax burden n the comng years and t w
eventuay turn nto sharehoders weath maxmzaton. Companys cost
of credt sgncanty mproved due to mprovement n net credt osses.
No ob|ecton receved from Federa Reserve Bank (centra bank of USA) for
FY13 capta pan. Some sgncant mortgage tgatons were resoved n
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FY13 whch accounts to progress n economc performance of the
company.
The return on tangbe common equty ncrease by 3% on YOY bass.
Ma,or /Aards Earned in "613$
1. Best Dervatves House, Best Credt Dervatves House by
Internatona Fnancng Revew
2. Best Goba Emergng Market Bank, Best Goba Emergng Market
Equty House by Euro moneys Awards for Exceence
.egaties
FY13 net ncome ad|usted by $235 mon ($13.9B to $13.7B) due to
fased nvoces. Attempts are n pace to dentfy these frauduent and n
case found, trgger recovery ASAP. Revenues had a negatve growth when
compared to FY12 and fe by 1% n FY13.
Pro,ections and (uidance to "614 and "61*
The company s condent of achevng a the estmated and pro|ected
targets of FY14 & FY15. It ams to resove more egacy ssues n comng
year. The company woud contnue nvestng n Treasury and trade
soutons.
Conclusion
Anayss of the above mentoned facts depcts that economc performance
of the company s on a growth orented tra|ectory. It recorded argest
prot snce the nanca crss. Despte, many emergng markets
economes sowed down from ther respectve hghs, they were abe to
earn handsome nancas, a attrbuted to ther quaty stah and busness
code of conduct. The nancas of the company s stabe and the set
targets for FY14&FY15 ooks promsng. The credt and mortgage busness
of the company s heathy and many quaty customers are added n the
FY13. Ctgroup provded exceent servces to ts nsttutona cents and
payed a ma|or roe n words bggest nanca deas of a tmes .Anayss
of Ctgroups actvtes such as - customer commtment, concern for
empoyed stah, new nnovatve products and servces, transparency of
conduct, concern for stakehoders and sharehoders etc. t coud be safey
concuded that the economc dmenson of the company for FY13 has a
postve mpact n comparson to sca prevous years.
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!. nvironmental dimension of the performance
For every banks sustanabty envronmenta dmenson pays an
mportant roe. Every bank wants to mnmze ther actvtes whch
negatvey mpact the envronment or there s no mpact. By refusng to
end, these banks extend ther sustanabty poces to those whose
acton cause negatve mpact to the envronment. Ct bank beeve that
workng to promote sustanabty for both as a rm and cents s a good
busness practce. Ct bank envronmenta pocy s apped gobay n
over 100 countres where they operate ther busness. Ther goa s to
agn the busness and to drve nnovatve soutons to envronmenta
chaenges.
CITI=s eniron#ental sustaina&ilit> strateg> ?ocuses on t:ree
categories'
1. Operatona Eco Emcency
2. Envronmenta Rsk Management
3. Opportuntes
Ct bank envronmenta pocy revew commttee consttute the senor
managers from across Ct SBUs, who provdes gudance on how to
sustan the envronmenta ssues. Cts dvdes the responsbty for other
key envronmenta ssues and the groups are
1. Cts Corporate sustanabty team: Responsbe for overa strategy
by engagng both nternay and externay
2. Corporate Reaty servces: Ths unt manages the overa
envronmenta footprnt of Cts goba operatons and responsbe to
meet operatona envronmenta goas.
3. Ct Procurement servces group: Manages a suppy chan
sustanabty ntatves
4. Envronmenta and Soca Rsk Management unt: sets ESRM poces,
procedures, and works cosey wth bankers to suggest cents to
meet nternatona best practce.
Operational Eco ECcienc>
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By strvng contnues operatona emcency and green budng, Ct
reduces the drect mpacts and footprnts n ther operatons. Ct measure,
anayse and optmzes the operatona envronmenta footprnt by carbon
doxde emssons, energy usage, water consumpton and waste
management. Ths ncudes 12000 goba factes, reta branches, data
centres and ATM kosks.
Ct made a tremendous progress n reducng envronmenta foot prnt.
They wanted to reduce ther greenhouse gas emssons through ncreased
emcency.
1. Investng n LED ghtng for more emcency
2. To mprove the performance of exstng equpment through a
systematc approach that dentes and addresses the nemcences.
3. Intatves to reduce emssons ke onste eectrcty generaton.
Ct made a remarkabe progress by achevng ther goa of 25% reducton
n greenhouse gas emsson n two years (2011-2013). Ct reduced ts
emssons by 294,759 metrc tons from base year 2005, whch s an
absoute 25% reducton. Now they are settng a new goa .e. further
reducton n GHC emssons by 25% by 2015.
(2C E#issions &> region Aise
(eograp:> (2(
E#issions
D#tE
Total Energ>
Consu#ptionD
(W:E
Total Aater
consu#ption
D#3E
Total
Aaste
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.ort:
/#erica
4+49004 190*3 39+409404 2898*0
-atin
/#erica
1*19*14 344 19*429043 139+F2
/sia
paci!c
2349804 38+ 42+9F43 49224
Europe9
Middle
east and
/?rica
13F9*10 30F +029+2F 893+1
-EED
Cts desgns new operatng stes whch reduces the mpact on the
envronment. Ct bank s one of the rst companes to partcpate n LEED
voume bud portfoo program. By 2015, Cts goa s to have 15% of
LEED certed goba stes. As of now, ts 11% stes are certed .e. 215
LEED certed pro|ects across 24 countres.
LEED Certcaton by Regon
Geography Tota Certed
Pro|ects
Tota Certed
Square Footage
(SF)
Operatng SF as
of 12/31/13
North Amerca 159 4,506,303 26,612,789
Latn Amerca 3 36,029 17,986,127
Asa pacc 37 1,759,821 12,262,757
Europe, Mdde
East and Afrca
16 502,273 7,195,807
Tota 215 6,804,426 64,057,480
Water
Wth more emcent technooges, Ct have reduced water consumpton.
Ct have adopted varous nnovatons ke ranwater harvestng, water
emcent appances and renovate ther wash rooms, ktchens n ther stes.
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Keepng 2005 as base eve, Ct had cut down the water use by 9% .e.
679,507 cubc metrcs.
Waste
Through varous ntatves to mnmze waste, Ct surpassed ther 2015
goa by 40%. Ct acted aong wth e-cyce to repurpose and recyce
empoyees od mobes from varous stes across US. Coected more than
7000 mobes, resod t, and donated the money to mutpe chartes. At
Cts ocaton n London & Ireand, where t dverted 2700 metrc tons of
waste from and by mprovng the recycng system by 70%. By
partnerng wth refashonNYC for cothng donaton pro|ect and Ct has
donated 12000 pounds of cothng to homeess HIV/AIDS patents.
Data centres
Ct focus to reduce the amount of energy t requred to coo the hardware
requrements by reducng the physca data centre and ncreasng more
vrtua servers. Snce 2008, Ct bank has emnated 50 data centre
factes and ncreased vrtua servers to 40000. They repaced 3850 od
server wth 3400 energy emcent servers and ths reduces energy
consumpton by 325 KW.
%ustaina&le tec:nolog>
In 2013, Ct ntated desktop standardzaton, whch reduces 2/3 of
empoyees computers to vrtua ones. By dong ths t enabes Ct to
consume ess energy and thus t contrbutes envronmenta sustanabty
ob|ectves.
Engaging E#plo>ees
In achevng envronmenta sustanabty, Ct bank engages empoyees
across varous regons wth more than 2400 members. In Earth week
2013, Ct conducted more than 230 events n 37 countres and 78 ctes
around the word. Empoyees of Ct took range of ntatves ke
1. In Tampa, Forda, Ct empoyees aunched an ntatve program to
recyce cohee grounds
2. In Coumba, aunched a recycng program n assocaton wth
Kmbery Cark
3. In Phppnes, Ct partnered wth vrane foundaton, and heped the
dsadvantaged fames and chdrens.
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4. Ct empoyees have vounteered more than 2642 hours where they
panted more than 6600 trees and ceanng park, beach and forest
of more than 50 acres.
%ustaina&ilit> in %uppl> C:ain
Cts Suppy Chan sustanabty program s whe achevng
envronmenta ob|ectves how to create mutua benet between suppers
who devers cost compettve products and servces. Ct desgned
Corporate Responsbty Ouestonnare whch assesses how current
suppers are handng envronmenta sustanabty n ther busness. In
2013, Ct executed CRO n Coumba and now ts been used n three
countres.
Apart from ths, Ct uses varous advanced toos to check ther
sustanabty n suppy chan.
1. Envronmentay preferabe purchasng tookt
2. Sustanabe paper gudance
3. Sustanabe dversty & sustanabty rsk and contro
4. Envronmenta, soca & governance ndcator to metrc workbook
Citi=s 2013 oer all eniron#ental sustaina&ilit> per?or#ance
anal>sis
". #ocial dimension of the performance
For an organsaton soca dmenson pays an mportant roe.
Sustanabty towards varous aspects of busness s ndeed an mportant
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determnant of growth. Cts soca dmenson focuses on the foowng
areas:
1. Fnanca Incuson
2. Taent Attracton & Retenton
3. Labour practce ndcators and human rghts
4. Controversa ssues, demmas n endng/Fnancng
"inancial Inclusion
They work wth varous oca markets products that Ct mcronance has
ntated; the focus has been the expanson of nanca ncuson. They
work wth corporate partners, cents, banks, nvestors, non -
governmenta organzatons. The Ct foundaton has aways mproved ts
economc progress by ookng for the best n the aed partners that
actuay hep them drve a cacuabe economc opportuntes for the ow
ncome group n the socety aong wth the promotn n eadershp that
actuay heps them n scang ther deas. It s an extremey cruca factor
for the mprovement of the humanty. More than 2.5 Bon peope nd t
dmcut to open the bank account or get capta for ther busness for
further expanson. Ct has fostered growth n ths arena by workng wth
varous stake hoders to promote & expand the nanca ncuson gobay.
When peope make progress t s better for the economy as the spendng
power ncreases whch n turn heps the GDP growth of the country and t
s mpossbe wth nancng educaton and other nnovaton reated
actvtes.
Main O&,ecties
1. Empower consumer to bud ther nanca capabty
2. Fnance ahordabe housng & support for mcro entrepreneurs
3. Provde young peope opportunty to gan sk
4. Change tradtona approaches and brng new deas
Talent /ttraction G Retention
Taent s an asset that organsaton possesses and they become the
compettve advantage for the company n the ong run. Ct has aways
beeved n the mportance of taent at ther organsaton and beow are
the ponts whch w enumerate that how they do t:
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They have aways nvested n ther peope to hep them grow that w
enhance ther standard of vng and w hep the communty to grow as
we.
Diersit> at Wor< Place
They have a pretty ong and proud hstory of havng a dversed
workforce. Wth operatons n more than 160 countres they have aways
focussed on the vaues that the dversed workforce brngs on the tabe.
It s both the busness ob|ectve and the management mperatve. There
poces & procedures ncucates the vaues n the dversed workforce.
Baancng wth varous oca customs s a chaenge and they have
estabshed councs and commttees at varous eves to hande ths ssue.
The dversed work force heps them ncrease ther customer base and
heps cents and communtes make progress. They have aso partnered
wth varous coeges to hep them get the rght taent poo.
Inesting in Wo#en
Investng n women s aso one of ther motto, the current workforce has a
women popuaton of 53% n whch 45% are professonas. Over the ast
coupe of years hgh achevers programs have been ntroduced to
empower the women advancement and ther retenton at Ct. Some of the
programmes that they have ntated are Women eadershp deveopment,
Women eadng Ct and the coachng programmes. In 2013 the network
grew from 74% to 92% representng some 14028 members across n 35
countres.
Engage#ent G -earning
Investng n empoyees has heped them serve ther customers n a much
rened manner. They have aways beeved n the work cass tranng
programmes for ther empoyees. The empoyees at Ct earn through the
on the |ob, manager feedback & day feedback. Senor eadershp
sessons are undertaken by about 70 Leaders across that hep the mdde
eve managers to gan the experence, earnng & nsght that heps them
progress ther growth. The earnng at the eadershp forums heps them
ncucate the same n ther day |obs.
Co#pensation
They have aways recognsed that compettve compensaton, reguar
feedback and promotona prospects keep ther empoyees engaged and
oya. Apart from the reguar compensaton, performance based ncentves
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aong wth varous heath and weness, retrement pans, fe & dsabty
optons are made avaabe to empoyees. They have nvested n tness
and medca centres at varous ocatons that the bank operates. Other
ntatves ke vng we at Ct and promotng good heath has aso been
undertaken to hep empoyees to keep that sprt gong.
-a&our Practice Indicators and 2u#an Rig:ts
Ct has around 200 mn customer accounts, more than 296,000
empoyees and has busness presence n more than 160 countres. The
fortcaton of human rghts across the gobe s guded by the basc
fundamenta prncpes of the human rghts. Ct treat a ts empoyees
wth a dgnty and respect. They aso pay speca attenton to the aws of
the country where they operate. Ct s guded by prncpes that are n the
ILO Core Conventons regardng chd abour and enforced abour, freedom
of assocaton for ts empoyees and the rght to organze and bargan
together, and an equa pay structure and non-dscrmnaton n ts
workforce. Ct strugges to support ts human rghts through ts suppy
chan by promsng actons that are reabe and fus the ob|ectves of
Ct Statement on Human Rghts, and by usng deaers whose corporate
vaues are Sync wth us. Ct aways prefers to do busness wth cents
who share ther vaues regardng human rghts. They exercse approprate
etheca practses wth ts cents to protect ther franchse and to ensure
that Ct mantans hgh ethca standards. Through ther cent
reatonshps they have an abty to share best practces, whch we hope
w further enhance the promoton of human rghts around the Gobe.
Controersial Issues9 Dile##as in -ending ) "inancing
Snce the bank s operatng n more than 160 countres there are hgh
chances that the bank w be drawn n some controversy but what s
mportant s how they tacke the aftermath of such ssues. We have
hghghted some of the ssues:
1. In 2012: FINRA has ned $600,000 for chargng excessve markups
& markdowns on bond transactons to Ct. $2 mon has been
charged for supervsory voaton. A sum of $3.5 for naccurate
performance data. $ 888,000 for pay obbyst usng muncpa
bonds.
2. CFTC has ned $ 525,000 for takng a specuatve poston n wheat
futures.
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3. |an 2013: was one of the ten ma|or enders who agreed to pay $ 8.5
bon to resove abuses on cams forecosure.
4. Mar 2013: Ct pad $730 mn for awsuts by nsttutona nvestors
for mseadng through there bank regardng rsk on oherng of
stocks. Between 2006 and 2008.
5. Federa Reserve enforcement acton aganst Ct foe not controng
money aunderng.
6. |uy 2013: Ct pad $968 mn to Fanne Mae n one settement on
msrepresentaton of quaty assocated wth home oans.
7. Oct 2013: Announcement from Fredde Mac that Ct woud
repurchase $395 mn home oans.
8. Dec 2013: Ct was ned wth nvovements n manpuaton of LIBOR
nterest rates by European commsson a sum of $ 95 mon.
$. Determinants of %roduct stewardship
Product %teAards:ip
Product stewardshp n any ndustry s responsbe to deveop product
whch can dever more than ts generc utty/concept to socety. The
contrbuton coud be towards envronment, heath or safety mbbed n
product fe cyce. The companes many n manufacturng, desgn the
poces and product n such a way that mnma harm s done to socety or
envronment. Usuay, ater phases of product fe cyce when product
dsposa coud become a threat to envronment. The product s tsef
desgned wth re-usabe matera, promotng envronment concern of the
company.
Wth growng awareness, not ony manufacturng but servce too has
started product stewardshp as ntatve for corporate sustanabty. The
product stewardshp of any servce company (bankng) requres the
company to devote ts commerca actvty for the benet for not ony
sharehoder (stah, stakehoders) but aso socety and overa envronment.
The product or servce aunched by the company at every eve has
accountabty to contrbute to socety and natura envronment.
Companes are now usng the phosophy of product stewardshp for both
ganng sustanabty and compettve advantage n the market.
Product stewardshp n Ctbank has utmate goa to promote sustanabe
bankng through Cts products and servces. The Ctbank has been
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known to use technoogy to drve the nnovaton n provdng the bankng
soutons. The Ctbank has been provdng souton to ease the customer
experence n transacton bankng. Automaton and technoogy drven
souton make both customer and empoyees fe easy by gettng the
transactona data from the source.
Innoation
Ctbank has been recenty awarded the best nnovatve bank of year
2013. Ctbank has tred to brng the bankng over handheds and makng
t secure at same tme.
Mobe payment souton - Ctbank has aunched mobe enabes product
whch aows 300 mon pus users to make payments through debt and
credt card. The product aows users to access the promotons and servce
through mobe phone wthout any regon or tme constrants. The app has
been awarded and accamed wordwde. Observng the success, Ctgroup
has aunched the app n another 6 markets.
Money2 heath - The nnovatve and consumer centrc patent payment
souton whch smpfy the payments for patents and ther provders. The
Appcaton aows mut provder to make payments aganst patent
payment. The product exempes the concept of mxng nnovatve dea
wth technoogy.
Vsa PayWave - The credt card payment technoogy aunched n
Phppnes, whch aow contactess transacton of money through RFID.
The Vsa PayWave s a perfect exampe of adoptng new technoogy for
betterment of customers. The system aows 2-3 tmes faster payments
through credt cards.
Ct E- Brokerage - The product enabes to traders to trade drecty wthout
any broker. Removng broker from the tradng s makng the system more
transparent. The product revoutonzes the usua process of tradng.
Expandng Internet bankng - Internet bankng or mobe bankng has dua
ehect both on customer and empoyees. Internet bankng aows customer
to bank or transact from any pace at any tme. The bank does not have to
empoy the empoyees to sgn oh the transactons. The transactons done
over net are recorded whch agan cut the empoyee abour. Ctbank has
been expandng ts reach n Internet bankng.
Ct Fu care card - The nnovatve dea (patent pendng) that aow
empoyers to pay ony when they are admnstered wth u vaccne. The
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card provdes nformaton on other cheaper channes for vaccnaton. The
pre bookng charges and other vaccnaton charges are saved f not done
at doctors omce. The product once aunched w gve the rst mover
advantage to Ctbank and w gve cost savng of approx. 65% to
empoyers. The servce once aunched w surey be empoyees wth
other companes to provde cost savng abty to both ther empoyers and
customers.
New ntatves - Ctbank s pannng to aunch products n dgta sef-
servce envronment, where user does not requre nteractng wth any
person for bankng servce and soutons.
"leHi&ilit>
Ctbank has evoved the bankng nto dstrbuted mode, makng branch
|ust one of the transacton node. Varous servces has been automated
and dstrbuted n sef - handed kosks, ATMS, and other dgta channes.
Ctbank has aunched servce for export houses, whch enabes them to
montor and access accounts on end to end bass. These knds of soutons
make the fe easer and promote transparency, aowng trade to oursh
wthn countres. Intercompany endng management s a web based
treasury management patform, whch gves centrazed actvty patform
for fundng actvtes on gobay shared onne system. The toos
streamne the nanca ows and aow the centra reportng of
transactons.
Ris< #anage#ent and delier>
Ct Treasury Anaytcs - Contrbutes to transparent nvestments and gve
decsons makng abtes to both empoyers and customers. The too data
gve assurance and condence n nvestments. One pace to observe the
whoe portfoo wth reevant nformaton whch saves user tme. The too
does hep n quck reportng and anayss of probem n hand for
nsttutona managers. The churned or smped data does hep
empoyers of Ctbank to assst the customer emcenty and abe to save
both empoyers and customer tme. The system n pace does hep bg
organsaton to mantan the devery commtments to both nterna and
externa stake hoders.
Conclusion
The product stewardshp s one souton to attan corporate sustanabty
for servce companes. Ctbank tres to gan compettve advantage n the
market by nvestng n Innovaton, whch n turn touches many
determnants of sustanabe bankng such as quaty, resource utzaton,
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exbty and stakehoder satsfacton. A the facets such as nnovaton,
rsk mtgaton and devery and exbty denes the product stewardshp
of Ctbank. The cuture of brngng a products whose fe cyce and
product tsef adds to socety and envronment has made Ctbank attan
exceence n sustanabty. Companes appearng for Dow |ones
sustanabe ndex (D|SI) measures the sustanabe ndex across varous
abes. Ctbank has shown predomnance n product deveopment and
stewardshp by gettng compettve advantage n market by use of
technoogy and nnovatve deas. The bank has ntegrated technoogy to
gan prots for stake hoder and same tme ganng good measures n
corporate sustanabty. The D|SI recognses companes who can show the
prowess of ther product for ther utty and contrbuton towards the
socety.
&. Analysis
Ct has around 142 mon accounts and that makes t the words
argest credt card ssuer. The cards am at enhancng goba vaues
to ts customer. Its credt card dvson has ted up wth varous
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partners to provde vaue to ts customer. The credt cards have an
ntegrated reatonshp program wth the retaers and ts cents
whch gves a mutua benet to both makng t a wn-wn stuaton
for both. Durng the year 2013 the tota purchase saes were $75
bon and oan portfoo $46 bon.
Ct has around 4600 reta branches wth around three fourth n the
emergng market and they are optng a new dstrbuton mode. The
branches are |ust a snge pont n network and they ncude the
characterstcs of the tradtona banks, agshps, mut-functona
ATMs and the dgta channe system makes t one of the most
nnovatve and trusted bank across the word.
Ct has been named as been named as an ahordabe housng eader
n the US for three consecutve years shows the credbty of the
bank towards ts oya customer base. Aso t shows the thought
process of the bank whch s n ne wth the thought process of
prevous US government whch promsed to provde house for every
Amercan.
The busness vertca of Ct provdes ts cents wth trade nance
servces and ntegrated cash management to MNCs, PSUs and
nanca nsttutons across the gobe. It has shown the
characterstcs of a true eader n provdng personazed and
nnovatve soutons to ts cents through ts comprehensve sute of
dgta and mobe-enabed patforms, toos and anaytcs.
Ct bank has recorded argest prot snce the goba nanca crss.
There has been ups and downs n the emergng markets but Ct has
evoved as the undsputed market eader and has fetched record
prots n ast three years. A credts to the busness code foowed
by the company and the enthusastc workforce.
Ct bank has an excusve corporate sustanabty team responsbe
for ts overa strateges. It has taken ntatves n the ed of ESRM
poces, procedures, and works cosey wth bankers to suggest
cents to meet nternatona best practce.
An Organzaton becomes truy word cass and sustanabe f the
consumpton of the non-renewabe resources becomes sgncanty
ow. Ct has shown ts commtment towards the socety by the
usages of LED ghtngs across a ts omces. It has aso reduced the
emsson due to eectrcty usage. There s a cut n the greenhouse
gas usage by amost 25% from 2005 and further 25% by 2015. It
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shows the compatbty of the rm and the acceptabty towards
beng an Eco soca rm.
Ct pans by 2015 to have 15% of LEED certed goba stes. As of
now, ts 11% stes are certed .e. 215 LEED certed pro|ects
across 24 countres. There has been a cut n the usage of the water
by 9% .e. 679,506 cubc metrcs snce 2005. It has a sgncant
presence n the ed of waste management where t dverted 2700
metrc tons of waste from and by mprovng the recycng system
by 70%. Actng towards the best nterest of the company Ct has
donated 12000 pounds of cothng to homeess HIV/AIDS patents.
In achevng envronmenta sustanabty, Ct bank engages
empoyees across varous regons wth more than 2400 members. In
Earth week 2013, Ct conducted more than 230 events n 37
countres and 78 ctes around the word. There has been a deep
nvovement by the empoyee n achevng these numbers for Ct.
T date Ct has reduced 25% of the absoute CHG emsson. A 40%
reducton n waste stream n and. 20% reducton n water
consumpton. 15% of goba rea estate s LEED certed. 20%
mprovement n portfoo energy emcency. These are the
characterstcs of a true goba eader whch s settng an exampe of
growth through sustanabty.
Wth More than 2.5 Bon peope nd t dmcut to open the bank
account or get capta for ther busness for further expanson. Ct
has fostered growth n ths arena by workng wth varous stake
hoders to promote & expand the nanca ncuson gobay. Wth an
ob|ectve of empowerng customers, Ahordabe housng support,
Tranng enhancement sks for young peope, Idea generaton.
Women empowerment s aso an mportant factor whch s beng
consdered by Ct. Of ts tota workforce 53% workforce are women.
They have ntated programs ke Women eadershp deveopment,
Women eadng Ct whch soves there msson to a great extent.
Ct has pad a speca attenton to the aws of the country where
they operate. They are guded by prncpes such as those n the ILO
Core Conventons regardng chd abour and forced abour, freedom
of assocaton for our empoyees and the rght to organze and
bargan coectvey, and equa pay and non-dscrmnaton n our
workforce. It shows a cuture of unty n dversty n the organzaton.
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Wth a motvated stah workng around the cock wth one thought
process n ther mnd that "Ct Never Seeps".
Ct has evoved as a eader n the area of product stewardshp wth
nnovatons n varous segments ke mobe money soutons,
money2heath, vsa PayWave. Ct EBroker servce has been seen as
a breakthrough n the market where tradng s beng done n the
absence of the broker provdng more carty to the tradng process.
'eferences
1. http://www.corp-research.org/ctgroup
2. http://www.ctgroup.com/ct/ctzen/humanrghts/
3. http://www.sustanabty-ndces.com/mages/130912-d|s-revew-2013-en-
vdef.pdf
4. http://www.ct.com/ct/about/data/corp_ctzenshp/goba_2012_engsh.p
df
5. http://www.ctgroup.com/ct/news/2013/130920d.htm
6. http://www.ctgroup.com/ct/press/2009/090914a.htm
7. http://www.ctgroup.com/ct/ctzen/data/cr08_ch15.pdf
8. http://www.ctgroup.com/ct/news/2013/130920d.htm
9. https://www.googe.com/nance?q=NYSE
%3AC&e=5u2AU7|bE9HTkgXk04D4DO
10.http://www.ctgroup.com/ct/nvestor/overvew.htm
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