Social Report 2014
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This is a translation from the Hebrew and has been prepared for convenience only. In case of any discrepancy the Hebrew will prevail. 4 Greetings from the Chairman and 67 DISCOUNT'S CUSTOMERS the President & CEO 68 General policy 6 A Corporate Responsibility Report - what is it? 69 Retail Customers - household segment 7 Challenges and opportunities in the field of social 78 Customers of the small responsibility business segment 9 Discount's fourth Corporate 80 Private Banking customers Responsibility Report 83 Service to corporate 10 The process of identification of customers the material Aspects 85 Customers of middle market 14 Aspects defined as material banking segment 15 Reporting to the Global Compact 86 Additional services 17 Control over the appropriateness 90 Social networks - The of reporting - Discount Bank Discount Group 23 BANK'S PROFILE, 91 Financial education CORPORATE GOVERNANCE, 93 Business continuity VISION AND VALUES 94 Accessibility to handicapped 24 The Discount Group - general persons overview and structure of the 96 Proper disclosure - Group information regarding 29 Issues regarding corporate products and services governance 97 Communication with customers 46 Principal control functions - improvement of service 48 The Discount code of ethics 106 Appendix: Suppliers THE DISCOUNTERS שגיאה! Corporate Governance Code for the 49 הסימניה Discount Group אינה Prevention of bribery, fraud and 50 מוגדרת. embezzlement 52 Additional Ethical Aspects 111 Human Resources Policy 55 Vision and Values 120 Employment terms and remuneration 57 Financial and economic profile 130 Labor relations of the 64 Membership of organizations and principal subsidiaries external Initiatives 131 Legislative and regulatory 179 GREEN DISCOUNT - FOR THE restrictions and their ENVIRONMENT arrangement 180 Policy 133 Characteristics of Bank employees 181 The consumption of resources 134 Retirement and dismissal 183 Emission of greenhouse gas 136 Employee turnover 186 Paperless Bank 139 Vacation and absence data 187 Use of recycled materials 140 Human resources planning and development 188 Additional activities 146 Organizational culture 189 Management of environmental risks 148 Employee welfare 190 Credit Policy regarding Environmental Risks 152 Safety in the workplace and work environment 194 EPILOGUE 155 Preventing sexual harassment 194 Thank you's! 157 DISCOUNTERS FOR THE 194 Reaction to the Report COMMUNITY 195 GRI content index combined with 158 Community Activity Policy UNGC 159 Volume of activity 160 "Discount Sprint for the Future" - Discount Bank's flagship project 164 Voluntary Activities 167 Various projects 169 "Herzelilinblum" - Banking and Tel Aviv Nostalgia Museum 172 Arts 174 Sponsorships 176 Involvement in and contribution to the community by the principal subsidiaries 177 Social responsibility ratings Greetings from the Chairman and the President & CEO We are honored to present the Corporate Responsibility Report of Discount Bank for 2014. The publication of the Corporate Responsibility Report reflects Discount Bank's deep commitment to the subject of social and environmental responsibility, including in matters of corporate governance. The report is being published proximate after the end of 2015, the year in which the Bank has celebrated eighty years since its establishment. Over the years of its existence, Discount Bank has been a leader in social action. This is the fourth Corporate Responsibility Report published by Discount Bank. The report has been prepared for the first time in accordance with the GRI G4 (Global Reporting Initiative) Standard. The transition to the new standard involved the definition of Aspects viewed by the Bank as material reporting Aspects, within the framework of discussions held by the Management and the Board of Directors. In 2010, the Bank joined the United Nations Global Compact initiative. This report constitutes also an annual update of this initiative in respect of 2014. In this respect we reiterate the Bank's commitment to the Global Compact initiative and to its ten principles. Publication of the Social Responsibility Report was made alongside additional reporting frameworks: to the Maala Organization, to the EIRIS research body and to the reporting and recording center of the Israel Ministry of Environmental Protection. This reporting structure reflects the Bank's commitment for transparency and for extending its activity in social responsibility areas. The Corporate Responsibility Report presented below is not only a report or summary of activities, but is also, and mainly, a promise to continue the activities of the Bank and its employees in servicing its customers, continuing to work opposite those involved with the Bank and for the community alongside we work. Within the scope of its social involvement and commitment, the Bank will continue to take action to advance weak populations and encourage its employees to participate in activities for the community, thereby strengthening its social contribution as an organization and as individuals. Furthermore, the Bank has and will take action to integrate environmental considerations as part of its business strategy and credit policy. On behalf of ourselves and the members of the Board of Directors and Management, we support all the volunteers being employees of the Discount Bank Group, and all stakeholders in the social activities and projects led by the Bank. Dr. Yossi Bachar Lilach Asher-Topilsky Chairman of the Board of Directors President & CEO January 31, 2016 A Corporate Responsibility Report - what is it? Corporate responsibility reporting rests on the approach that a corporation must be accountable to the society and the environment in which it operates, and not only to its shareholders. The adoption of this approach leads to a broadening of the scope of reporting, while addressing a wide variety of subjects, aspiring to deal with the full range of social, environmental and economic issues that occupy all the stakeholders of the reporting corporation. A "stakeholder" is anyone that Discount Bank influences or is influenced by: customers, employers, suppliers, shareholders, the community and the environment (it should be noted that as a financial corporation, in its main field of activity - financial brokerage - the Bank's vendors are essentially its customers, which their activity as depositors serves the Bank in providing financial resources. Another significant party is contracted workers, who are discussed in the chapter dealing with employees)1. The dialogue with the stakeholders is being conducted in various channels and is detailed in the different chapters below. The Corporate Responsibility Report complements the corporation's financial statements. Whereas one presents the corporation's financial performance, the second presents the manner in which things are done, the degree of importance that the corporation attributes to the aspirations of its stakeholders, and its efforts to promote areas requiring improvement. The Corporate Responsibility Report is not just a reporting framework, but a platform for ongoing dialogue between the corporation and its stakeholders. The Bank was the first banking corporation to issue a Corporate Responsibility Report in Israel in 2005 (for the years 2003-2004). The second Social Responsibility Report was published in 2009 (for the years 2007-2008). The Bank's Third Social Responsibility Report (for the years 2012-2013) was published in 2014. The publication of the Fourth Social Responsibility Report forms an expression of the Bank's commitment for social responsibility issues and for their importance as part of the Bank's organizational culture. 1 G4-24; G4-25 Corporate responsibility report - Directives of the Supervisor of Banks in Israel On the background of developments regarding the issue of corporate responsibility reporting, and in view of the importance that the Supervisor of Banks attributes to the activity of banking corporations in this respect, the banking groups, in accordance with the Reporting to the Public Directive, are required to publish reports for a period of up to two years concerning corporate responsibility. In accordance with the instructions, the corporate responsibility report may refer to matters such as commitment for involvement in the community, environmental topics, cultivating the staff and work environment, fairness to customers and business ethics. The instructions does not determine the reporting contents, though it is recommended to include therein disclosure regarding relevant quantitative indices as well as relevant standards according to which the banking corporation operates in this field. This report is the second report presented in accordance with the new instructions. It is the Bank's intention to publish a social responsibility report every year. Challenges and opportunities in the field of social responsibility Social responsibility and sustainability is an approach that provides the Bank with a methodological opportunity to make an operative connection between various topics and challenges. Discount Bank has been connected with the community since its establishment. Throughout the years, the Bank has seen itself as a bank that operates within the community, as a bank that operates in the best interests of the customer and his family and as a bank that acts responsibly toward all the stakeholders who influence, or are influenced by, its activities. The Bank is focusing on the challenges facing it in the social responsibility field, on