1. BANCO real: Banking on Sustainability

2. Brazil and Finance Service Industry Brazils most admired company Vast natural resources Slow down in Brazilian economy in 1980s President Lula & GDP grew by 5.2% in 2004less than $2 a day and 13 % less than $1 Environmental Deficiencies: waste water, 40 % solid waste, poor transportation Homicide rate 50 per 100,000 residents and Drug gangs 3. Banking Sector Federally-owned, state-owned, private Brazilian controlled andforeign controlled banks Dependent on Float Revenues Two periods of inflation Plano real a program to control the exchange rate as an anchor Came in response to international financial crises, local interest rates increased, many international banks entered into brazil 4. Focus on the clients focusCommitted and qualified staffCompetitive tollsCorporate valuesTotally Satisfied Client Shareholder sCommunity Employees 5. Customer and Markets: Actions at the core of the Business Focus- Customer, Stressing Relationships Rather than Transactions Focus Goal include- Decision making, Reviewing Communications with customers Shift in Segmentation- ( Business, Standard, Special, Premium) to (Lawyers, Retired Persons, Dentists, Military Personnel, University Students, Teachers, Professors & Doctors) Breaking Relationship Amazon, Providing Support-Harvesting operation (With oceanographer) Raising the stakes- Training program Credit risk analysis- not only analyzing results but attitudes of clients ( prone to take action ) character, capacity, capital, collateral, conditions Questionnaire- based on accidents, toxic treatment, cross check Eucalyptus - 40% area, ( solves driving out of birds, animals), helps 20-25000 people benefit 6. Contd. Screening Process- Tobacco, Firearms, Alcoholic Beverages Special funds Conversion of gasoline to natural gas cars World Bank step- Granting US $ 51 M to socio-environmental andcorporate governance improvements Micro-Finance- for very poor to raise std of living Influencing suppliers- multiplying ideas and practices ( shocked with meeting better practices Vs commercial relationships) stress on CSR Idea was not a black book but a white book to stimulate good practices regarding HRM 7. Shaping the culture inside the Bank 3 Rs Campaign Impacts onwater,energy,and paper Role of top Management? Environment week in June 2002 Recycling paper and its Impacts? Measures to save water and energy Employees diversity in the Organization 8. Results and Challenges The continuous progress helped them to held 4th largest privatelyowned bank in Brazil and 3rd major market for parent company. 78% of current client were completely satisfied and 21% of people interviewed had 1st preference for BANCO if they chose to leave current bank. Employee satisfaction was high up to 95% in 2003. Also was 2nd in banking list on Carta capital magazine. Continuous need for innovation was the key to lead also long term conscience than a short term orientation. Customer centric approach was crucial along with openness and transparency for better position. Vision of BANCO Real and parent company need to be aligned so that disagreement would not exist. 9. Balanced approach between banks capacity to avoid any financialrisk and for sustainable wing. To analyze the various activities going hand in hand and the impact on the business progress.