The evaluation of the use of CSR strategy in the tunisian banking sector: STB as a case study

University Of Kairouan HIGH INSTITUTE OF APPLIED STUDIES IN HUMANITIES SBEITLA

Topic: The Evaluation of the Use of CSR strategy in the Tunisian
Banking sector: STB as a Case Study

Supervised by: Mrs. Nadia Abid Submitted by: Sonia Rawefi

A memoire submitted in partial fulfillment of the requirements of
a «licence appliquée» in Business English

Academic year: 2010- 2011

Acknowledgement

This research project would not have been possible without the support of many people.

I would like to express my gratitude to my supervisor Miss. Nadia Abid, who offered me invaluable assistance, support and guidance.

My love and gratitude to my beloved family, my dear husband and friends; for their understanding and endless love through the duration of my studies.

Executive summary

This research aims at evaluating Corporate Social Responsibility in the banking sector in Tunisia and took La Société Tunisienne de Banque (STB) as a case study. This evaluation was carried out by means of a questionnaire distributed to twenty agents working in two STB branches.

What is visible through the findings is that CSR sphere receives a regular attention from STB, especially the social dimension. But remarkably, only a few employees seem to have participated in CSR environmental projects or seminars, this would either suggest a lack of employees' knowledge or a lack of CSR principles implementation.

Table of Contents

Introduction 1

I-Chapter I- Literature Review

1.1CSR: Definitions	3
1.2CSR as a business strategy	.4
1.3 CSR basic principles	.5

1.3.1 Theoretically

1.3.2 Practically

1.4 The objectives of CSR .7

1.5. CSR in Banking 7
1.5.1. Economic responsibility

1.5.2. Social responsibility

1.5.3. Environmental Responsibility

1.6. Impacts of CSR strategy on banking 11

1.6.1. Economic effects

1.6.2. Social effects

1.6.3. Environmental effects

1.7. Banking and financial system in Tunisia 14

1.8. Banking supervision 15

1.8.1 Legal supervision 1.8.2 Internal supervision

1.9. La société Tunisienne de Banque (STB) 17

1.9.1 Definition

1.9.2Services

1.9.3 STB Strategy towards its clients locally and internationally

1.9.4 STB Employees

Chapter II: Methodology 22

2.1 Subjects

2.2 Data collection instrument

2.3 Procedure

Chapter III Results and discussion 23

Conclusion 29

The questionnaire .30

References

Appendices

List of Acronyms

Introduction

In recent years, the number of natural catastrophes affecting human lives worldwide has continuously grown. In the mean time, fighting for human rights and global welfare is arising as often as ever. Corporate social responsibility (CSR) has risen internationally as one of the key elements of defining Conscientious business practices.

While the subject of CSR has been widely studied for decades, no single definition can be found. Corporate Social Responsibility is considered as the building of positive measures on the basis of the three dimensions, social, economic and environmental responsibility, aiming towards achieving equilibrium between economic, environmental and social welfare to obtain a sustainable bank development.

Historically, banks have often been the object of dissatisfaction, distress and critique, especially by customers through economic challenging circumstances. Today, however, banks have risen to be advocated for environmental and social responsible practices. In addition to funding ethical causes, banks have begun to carry responsibility in denying funding for doubtful projects. Through rejecting some contracts, banks can obtain more business from highly regarded customers who are conscious of the gained good reputation.

An increasing amount of customers are choosing their banking institutions according to which actions the banks do not participate in. So, CSR strategy is used fundamentally as a synonym for sustainable economic, social and environmental responsibility.

Through the comparison between the CSR main bases and principles and the Tunisian banking and financial laws and after our brief study of the STB and its strategies, we deduce that Corporate Social Responsibility is feasible and profitable for this bank, its shareholders

and clients. Furthermore, according to the Tunisian Financial and banking law, this strategy is applicable and we didn't find any law that bans any Tunisian bank to adopt it.

My research aims to shed the light on CSR as a newly- adopted strategy and its effects on the banking sector as a new procedure that can achieve the success of any financial institution and enhance the attractiveness of a larger number of customers and clients achieving their satisfaction. In addition, my project aims to focus on the ethical and environmental role that CSR tries to make a principle in the managerial process.

I've divided my research into three major parts. The first part focuses on four main categories; CSR, CSR in banking and its impacts, banking and financial system in Tunisia and the evaluation of CSR on STB. The second part is the research methodology in which there is a description of the subject, the data collection, and the procedure. Then, comes the last part which is the results and discussion in order to find a foundation for the study.

Chapter 1: Literature Review

1.1 CSR: Definitions

It is generally known that the concept of a company or corporation and even business

itself cannot be separated from society. Corporate Social Responsibility (CSR) is also called, corporate citizenship, social performance or sustainable responsible business. It is a management process which has no precise definition, but it generally aims to improve the quality of management and help the company to be socially responsible and committed by

incorporating social and environmental concerns in business and its operations. The nature and implementation of CSR depend on countries, societies and companies.

The following are some definitions of CSR:

* Wikipedia (September, 2007) defined corporate social responsibility (CSR) as «a concept whereby organizations consider the interests of society by taking responsibility for the impact of their activities on customers, employees, shareholders, communities, and the environment in all aspects of their operations. This obligation is seen to extend beyond the statutory obligation to comply with legislation and sees organizations voluntarily taking further steps to improve the quality of life of employees and their families as well as of the local community and society at large.»

* "The corporate act of giving back to the immediate and wider community in which organizations carry out their business in a manner that is meaningful and valuable and relevant to that community» (Ajala, 2009) .

*CSR is a way for the companies to reach out to their host communities by positively impacting on their environment» (Ogungbayi, 2009).

*CSR is a way of saying `thank you' to the environment in which they operae and a way of also showing a sense of belonging to the society at large» (Akinloye, 2009).

*The World Business Council For Sustained Development says: «CSR is the continuing commitment to business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large».

1.2 CSR as a business strategy

It is about supporting the state industrial and environmental protection policies. CSR protects and improves the natural ecological environment and supports the sustainable development of society.

CSR is defined as the economic, legal and ethical responsibility that financial institutions assume in their dealing with shareholders, employees, consumers, business partners, government and the wider community to improve the quality of management. As globalization accelerates and large corporations are serving as global providers, CSR programs have been progressively recognized through the benefits they provide in various locations. CSR functions as a built-in self-regulating mechanism whereby business monitors and ensures its active compliance with the spirit of the law, ethical standards and international norms.

In short, Implementing CSR in a company refers to linking itself with ethical values, transparency, employees' relations, compliance with legal requirements and overall respect for communities in which they operate. So, because of the importance of business ethics in the modern economy, it is absolutely necessary for managers and stakeholders to understand CSR and implement it correctly.

Furthermore, CSR is a concept which supports organizations to look at society's interests by being responsible for the impacts of the organization activities on customers, employees, shareholders, communities and all environmental aspects.

This management process has both inward and outward dimensions:

· The inward dimension refers to the human resources management, health and safety at work, adaptation to change, management of environmental impacts and natural resources.

· The outward targets are local communities, business partners, suppliers, consumers, human rights and global environmental concerns.

1.3. CSR basic principles

CSR as a new strategy adopted by financial institutions aims to preserve several bases and principles economically, socially and environmentally.

1.3.1 Theoretically

· Respect for human rights: a company should make sure that operations are conducted in accordance with basic human rights standards.

· Contributing to sustainability: to ensure that business practices contribute to a longterm economic and social development. Companies should work with government and civil society to define roles and responsibilities for social development.

· Diversity: company should pay attention to the rights, requirements and cultural integrity of indigenous people affected by its operations.

· Dialogue: A responsible of a company should open a dialogue with stakeholders to make sure that their activities are properly adapted to meet local conditions and guarantee benefits for both the company and the community.

· Integrity: a company should have a fair and honest dealings

1.3.2 Practically

· Reporting: the company should report on important aspects of the social impacts of their business.

· Anticipating issues: stakeholders should be identified and consulted before any major commitments are made or significant resources are allocated to ensure that the company acts in accordance with CSR principles.

· Social impact assessment: the company should evaluate whether and to what extent social impact assessments should be conducted as a basis for making business decisions.

· Community investments: opportunities for implementation through partnerships with government and civil society organization should be actively explored.

· Partly owned companies and other business relationships: contributing to improve supplier standard, adequate procedures for monitoring, evaluation ad or selection of suppliers reflecting the companies' social responsibility principles should be developed.

1.4 The objectives of CSR

The following are some of the goals the CSR aims to reach:

First, it aims to minimize the negative effects operating in conflict (disagreement sphere) while maximizing positive contributions to these areas. The key is to develop strategies that can address company goals to maximize and maintain sustainable profits and investments. So, it is necessary for the company to consider how they can increase both transparency and accountability in their operations to avoid negative social, political and economic effects. Secondly, CSR intends to promote health and safety. Finally, it highly takes into consideration the protection of the environment.

Those goals could be reached by

· Extinguishing practices that harm the public sphere, for example: child labor, hazardous substances, resources usage...

· Being committed to the internationally-agreed conventions which aim to protect the environment and provide basic social services like Non Governmental Organization (NGO) ,) The Organization Co-Operation and Development (OECD).

· Integrating public interest into corporate decision is making to serve the triple bottom

line: people, planet, profit and to help advance social and economic well being and enable people around the world to realize their full potential.

1.5. CSR in Banking

Banks are generally large companies that have powerful impacts on the economic sector. Their profession leads them to play a key role in managing the social and environmental impacts of their activities on the companies that benefit from their financing. For the past fifteen years, this unique responsibility has been gradually integrated into the bank practices, particularly at the request of civil society and donors. In addition CSR in banking is about organizing economic, social and environmental efforts of the bank, based on persisting stakeholder engagement and aimed at supporting business strategies and minimizing risks. Therefore, it should be guided by those transparency, dialogue, reliability and flexibility. CSR commitments in banking are divided into three major areas:

1.5.1. Economic responsibility

A bank should firstly respect corporate governance by respecting the laws. Secondly it develops a fair safe and stable competitive industry and creates continuously economic values through operations, shareholders, employees, clients and general public. Finally, it also guarantees stakeholders' and employees' rights by giving equal pay for equal work and by creating a comprehensive employee development program and a good scheme. Finally, it guarantees consumers' right by giving a correct and a clear information providing a protection system and warn them of potential risks. In other words, CSR is an important business strategy because wherever possible, consumers want to buy products form companies they trust, suppliers want to form business partnership with companies they can rely on, employees want to work for companies they respect and satisfy its stakeholder groups.

The bank's strategy should involve

· Promoting responsible lending and afford activities to advance the growth of responsible lending through a simple and demanding vision like encouraging the access to credit for all kinds of people and at the same time defeating over indebtedness.

· Helping customers to put their plans into action and securing their future and campaigning for the responsible distribution of credit and clear consumer information.

· Boosting the customer's confidence: a bank should combat over indebtedness by making sure that individual plans are realistic, clients have sufficient resources to repay their borrowings, settling monthly payments, matching with household budgets, encouraging access to credit for as many people as possible through a diverse and personalized range of services and products, and by offering flexible support to each customer and listening carefully to his needs.

The bank should develop a responsible product by giving the customer the opportunity to secure their loans with effective insurance like permanent disability, and unemployment, and ensure clear information by providing the consumer the information and services they need. The company should also be committed to obtain the possible rating like the percentage of accounts with clear payment records and finally making its convictions by explaining its business, its commitments and its support for responsible lending to the staff and the public.

1.5.2. Social responsibility

It is about protecting the public interest of consumers, employees and community guided by the corporate vision. It is also about actively participating in public welfare activities, cultivating social harmony and promoting social development.

The company's core should be based on integrity, respect, excellence and accountability. To make a positive social impact by creating jobs and providing a healthy and

dynamic work place is among its priorities. Furthermore it should conform to all laws and regulations provide clear disclosure of financial results and adopt fair and progressive human resources practices. It also protects the health and welfare with the support of the initiatives to assist environmental sustainability and invest in communities through donations, sponsorship and in kind contributions of products and services.

All those goals could be achieved by:

· Developing a responsible credit system to help raising the public awareness about the credit and sharing information with the industry.

· Being responsible for employees by emphasizing their health and safety.

· Providing human resources management and an effective employee training and creating a professional working environment.

· Supporting the social development of the community by providing convenient financial services.

· Initiating campaigns for financial education and participating in charity donations and voluntary activities.

Finally to be socially committed and responsible, a bank should inform and advice its clients by teaching them how to manage money budgeting, how to read bank statements and be able to evaluate their own financial situation by affording money management and education programs in their services. This is an important skill to avoid risks.

1.5.3. Environmental Responsibility

Environmental responsibilities should be integrated in banks protection program which is like the establishment of a system to optimize allocation of resources in accordance with the state's environmental policies and the international treaties global practices. The company should formulate plans for conserving resources and environmental protection, set up a special division to manage environmental policy, train employees regarding

environmental protection and actively participate in public environmental campaigns. It also aims to help and protect the planet by building a global approach, encouraging the funding of environmentally responsible consumption through «green» product and services usages: which are those less damaging to human health and environment than competing products or services that serve the same purpose.

1.6. Impacts of CSR strategy on banking

1.6.1. Economic effects

Corporate social responsibility (CSR) is increasingly a core component of corporate strategy in the global economy. In recent years its importance has become even greater, primarily because of the financial scandals, investors' losses, and reputational damage to listed companies.

Thanks to its strategy, companies, investors, consumers... can attain a variety of gains and benefits:

· Maximizing the efficiency and productivity of company's resources.

· Ensuring good corporate governance.

· Enhancing product responsibility.

· Developing the infrastructure.

· Reputation enhancement

· Ability to charge a premium price for company's output.

· Recruiting and retaining high skills workers.

· Bridging the trust gap between government, stakeholders, employees, investors and suppliers.

· Enhancing growth of investors' confidence in the company shares.

1.6.2. Social effects

CSR is defined socially as, legal, ethical and charitable responsibility that institutions assume in their dealing with shareholders, employees, consumers, business partners, government and the wider community. The following are some of the variety of benefits CSR affords to the community:

· To actively protect the public interest of consumers, employees and the community

· To advocate charitable responsibility

· To actively participate in public welfare activities,

· To cultivate social harmony and promote social development.

· To protect safety and quality

· To ensure more understanding and good relationships between organizations and society.

· To minimize unethical practices.

· To improve employment conditions

· Charitable contribution

· Employee volunteer programs.

· Corporate involvement in community education.

· Corporate involvement in community education and homelessness program.

· Product safety and quality.

· To reduce poverty

· To provide health care To ensure workers' rights

1.6.3. Environmental effects

Most environmental CSR activities involve changes to a firm's production process.

Its main goals are to support State industrial policies and environmental protection policies and the following are the main benefits of this strategy:

> To conserve energy,

> To protect and improve the natural ecological environment and support sustainable development of the society.

> To integrate environmental management tools into business plans.

> To recycle materials to protect environment from litters and thrown garbage. > To use resources.

> Greater material recyclability.

> Better product durability and functionality.

> Greater use of renewable resources.

> Integration of environment management tools into business plans.

1.7 Banking and financial system in Tunisia

As it is the case in every government, financial and banking sector is controlled by a set of laws and regulations. In Tunisia, all the banks are supervised by the Central Bank which, in its turn organizes all operations between Tunisian banks either public or private. These banks, though they differ in type or structure, must respect the financial laws which govern and control the banking sector. As an example, they have to guarantee the bank secrecy, protect the system of payment on line (with the assistance of the Electronic National Agency of Certification ANCE, and respect strict application of international ratios and standards....

The Banking sector has to follow and respect all international norms regulating all financial and banking operations including labor laws and rights:

+ Minimum wage of a worker: about 180 € (all charges included)

+ Possibility of recruiting young apprentices (from 25 € / month)

+ Encouraging recruitment of young graduates through incentives and exemptions

+ Engineers, technicians, skilled workers available in the market

+ Staff mostly among trilingual: Arabic / English / French / Italian / German

+ Sectoral vocational training centers available throughout Tunisia.

+ No union in the company below 40 permanent workers

+ Possibility of recruiting full-time or part-time, fixed term or indefinite

+ Possibility of outsourcing the workforce with specialized firms

Labor Code clearly specifies the rights and obligations of the employer and employee.

Banks are divided into departments to facilitate serving their clients on the one hand and to well manage its budget on the other hand. Human Resource Management as a department has to follow some laws and protocols like: the preparation of pay slips, the annual return of withholding, the preparation of employment contracts etc.

1.8 Banking supervision

1.8.1 Legal supervision

Loan establishments must provide the Central Bank with all documents, information, explanations and justifications necessary to the control of their situation and proving their compliance with the regulation governing loan and exchange control and the control of loan establishments.

· Control on documents

· This audit is carried out on the basis of financial and accounting documents and statistics conveyed periodically by the loan establishment.

· On site Control : Onsite control is carried out by missions of overall supervision in

keeping with an annual program set up by the Central Bank of Tunisia

1.8.2 Internal supervision

Loan establishments and non-resident banks must institute an internal audit committee in charge notably of:

· Seeing to the setting of appropriate mechanism of internal control by the establishment.

· Reviewing and giving its opinion about the annual report including the financial statement of the establishment before their transmission to social bodies for approval;

· Reviewing any statement of the establishment before its submission to supervising authorities.

· Examining any investment or operation which is likely to be harmful to the financial situation of the establishment and conveyed to it by chartered auditors or external auditors.

· The loan establishments and non-resident banks must set up an appropriate system of internal supervision which guarantees ongoing assessment of internal procedures, the determination, the follow up and control of risks related to loan establishments' activity.

1.9 La société Tunisienne de Banque (STB)

1.9.1. Definition

Societe Tunisienne de Banque (STB) is a Tunisian commercial bank. It offers a range

of financial products and services for individuals and business clients, including current accounts, credit cards and other credit facilities, investment services, deposit accounts, money transfers and foreign exchange services, as well as real estate solutions. The bank operates a number of subsidiaries and affiliate companies in tourism, industry, financial and property development sectors. Examples of these are the STB Invest, STB Manager, STB Capitalis, L'Immobilière de l'avenue, Skanes Palace International..STB has a network of 118 branches and 126 ATMs (Automated Teller Machine).

1.9.2. Services

Société Tunisienne de Banque, for its traditions and history, offers its clients a variety

of services eiher for persons or for enterprises and investors. v' Daily services

They include current accounts, accounts on line, STB SMS, STB net, STB speed recharge, savings/ deposits and investments, special saving account, account deposit privileges, home savings plan «Beit», Comfort savings plan, Education savings plan »optijeunes».

v' Credits

STB offers for its clients a variety of credits like Direct Credit and Personal Loans

(real estate loans, cars loans...)

v' Cards

STB offers for its clients a variety of cards like the ,Master card gold, Visa card, Visa electron card, CIB card ..

International Operations

In addition to local activities and financial operation, STB has a variety of services

abroad and outside the country to facilitate money transfer like a special account in foreign currency or convertible dinars, Money-gram , transfer to foreign countries ..

v' Enterprises

The services of STB involve not only persons but also it comprises companies and

enterprises affording a set of services like the current account, professional account currencies, international trade account, special accounts in dinars,E-commerce ..

v' Investment: (financing services)

For investors STB has a series of credit financing like the credit medium term

investment, credit of property development, long term credit investment tourism.. v' International trade

The service of this bank bypasses persons, enterprises and their financing credits and operations to have a set of services useful internationally like the discount shopping on the

mobilization and foreign debt abroad, documentary credits, discounts documentaries, international bank guarantees, coverage of currency risk ..

1.9.3. STB Strategy towards its clients locally and internationally

STB has always followed a strategy aiming to develop its offers and services focusing on their quality. Since 1993, the evolution of the quality of its services, STB followed a twophase-strategy, the first one operates a lot of ATMs and in the second of ATMs electronic payment terminals while adopting an electronic banning server technology considered as an evolution in the financial system in Tunisia.

Having the largest network of offices and exchanges boxes that satisfy its customers' various socio-professional needs, STB continues to innovate, particularly in the areas of direct banking and those associated with the use of new information technologies and communication.

Being updated with new adaptations and reforms of the national economy, STB is deeply engaged to its traditions and experience to build customer loyalty, increases profitability and diversity of its products, creates the fund investor, which a bound fund, called the investor SICAV. Furthermore, STB founded in 2001 the first SICAV in Tunisia. The Tunisian Bank has become a key partner in international relations and co-operations.

STB paved the way for international cooperation fully integrating into the international financial system through its wide and extensive network of contacts, partners and relationships on the outdoor spaces.

La Société Tunisienne de Banque (STB) has evaluated its relationships with France and the Western Europe countries which are traditionally partners of Tunisia. STB has also

played a leading role in Africa by helping to finance many African Banks and providing technical assistance. The experience of international bank allowed STB to adapt to different geo-economic and its network of correspondents, which extends around the world, has led to a substantial volume of exports, imports and remittances. Société Tunisienne de Banque (STB) was the first financial institution to create its Tunisian foreign exchange trading room in 1992,a modern structure unique to Tunisia. Technological innovation at the level of equipment, work procedures applied by the staff sorted among Bank staff mastering the techniques of international finance, foreign languages and trading can provide greater speed and efficiency in the execution of operations.

STB is the real sample of banks' modernization. It has since the nineties a whole restructuring allowing it to play a leading role at the level of financing the national economy and to engage fully in the process of upgrading the national industrial companies started by the governmental authorities to cope with the demands of the globalization of trade.

In 2000, STB was engaged into a fusion with two banks; the Bank of Economic Development in Tunisia and the National Bank of Tourist Development. The structure that emerged, namely the Société Tunisienne de Banque (STB), is a new version which has a more substantial competitive strength through better efficiency and greater synergy of resources and skills. It is ranked among the top banks in the Maghreb and the African Continent.

1.9.4. STB Employees

Currently STB directly employs 2350 employees and thousands more indirectly in terms of its subsidiaries.

The Bank has always adopted a strategy that balances economic and social dimensions, which is an important development. Particular attention is, thus, given to efforts aimed at strengthening the social harmony and reaching a culture of solidarity. Furthermore, the Bank is constantly trying to achieve its human-level objectives. Training and

specialization of staff are a constant concern; the Central bank direction provides comprehensive training each year as well as several actions directed towards the development of technical and professional staff.

With its assets and operating in an environment increasingly competitive oriented customer, the Tunisian Bank has implemented the necessary means for the consolidation of its business, the diversification of its products, the optimization of its commercial base, the upgrading of the network operation and openness to new trades.

CHAPTER II: Methodology

2.1. Subjects

CSR is a new strategy covering various fields either economically, socially and

Like many banks abroad , CSR contributes to the success of many banks in Tunisia such as l'Union Bancaire pour le Commerce et l'industrie (UBCI)

First I have met the chief of STB credit department Mr, Fawzi Aloui who answered my questionnaire comprehensively. Then, I have continued conducting my questionnaire with twenty STB agents in two branches in Tunis and Kasserine.

2.2. Data collection instrument

In order to accomplish my research about CSR in the Tunisian banking sector.

I chose a questionnaire to know whether this strategy is implemented in STB as an example of Tunisian banks. The questionnaire comprises fifteen questions asking about the use of CSR (CSR's economic, social and environmental concerns) in STB.

2.3 Procedure

In order to do my questionnaire, I went to two branches of STB bank (Tunis and

Kasserine) and I met twenty agents with whom I conducted my questionnaire. They were really understanding and helpful while answering my questions. Some of them politely refused to answer due to their ignorance of CSR basics and use.

Chapter III :Results and discussion

3.1 Agents' awareness of CSR in STB

Table 1: Respondents knowledge of CSR

Very well	Poorly		Not at all	20,33%
38,33%	38,33%

Table 2: Respondents knowledge of social, environmental and economic projects their industry is involved in

yes		No	65%
35%

Of all the respondents, 20,33% know about CSR strategy. However,38,33% admitted that they don't know much about it . The remaining 38,33% answered they do not know about it at all. In spite of this, 65% reported to know of economic, environmental or social CSR related projects. Respectively, 35% did not.

In the case of STB bank, the questionnaire shows an average level of understanding of CSR strategy. While employees knew of the existence of the CSR functions, not much knowledge of its deeper contents seems to have spread. They indicate a top level awareness of the existence of economic, environmental and social efforts, while the view of what CSR means is not clear.

3.2. Agents' awareness of CSR's social and economic dimensions in STB Table 3 Employees' participation in CSR seminars

yes		15% No
85%

Table 4: Respondents' training participation

weekly	Monthly	Yearly		not at all	5%
30%	65%	0%

Only 15% reported to have attended a CSR project or seminar given by their employers, the other 85% did not and 5% of STB agents attend training weekly, 30% monthly,65% yearly and only 0% not at all.

These results have shown that CSR seminars are not extended in STB bank while in table 15 results shows that training sessions for STB stuff is a constant concern and they do attend it mostly every year. We can conclude that CSR is applied in this particular area.

Table 5: Employees' perceived wages

Average industry level	Below industry level		Above industry level	60%
10%	30%

Table 6: employees' perception of the value of their work

yes		100% No
0%

Concerning employees' satisfaction, 60% of the respondents regarded their wages to be of average industry level. 10% evaluated their wages below industry level, whereas 30% above, but 100% of the respondents felt that their work was valued.

Through the above results we deduce that STB bank is always seeking to satisfy its agents by providing salaries matches with their efforts and their job positions. STB is always taking care of its employees by involving them in programs and training sessions to enhance and grow their work potentials and this might be one of many reasons why all STB workers feel that their work is important.

Table 7: Employees opinion towards their health and safety plan

Suitable

80%

Unsuitable		20%

Table 8: Respondents' knowledge about their bank protection strategy

Yes	No		I don't know	20%
0%	80%

80% perceived that their health and safety plan is suitable. 20% answered that their health and safety plan is unsuitable. Radiations and other harmful substances were recommended by 20% to be kept to minimum. An overwhelming 80% again answered «I don't know».

According to the results, the majority of respondents are satisfied with their health and safety plan offered by their bank. We conclude that STB provides its agents with a reliable protection system. While STB is engaged to build customer loyalty and increases profitability and diversity of its products, it is essential for this bank to consider radiations and harmful substances in its operations and table eight shows that most of STB agents have no idea if their bank consider it or not.

Table 9: Respondents' knowledge about following human rights provisions

yes	No		I don't know	60%
0%	40%

Table 10: Respondents' knowledge of removing child labor projects which their bank participate in

yes	No		I don't know	20%
10%	70%

60% answered that their employer acknowledges and follows human rights provisions and the other 40% did not know. 20% answered that their employer engages in projects to remove child or forced labor, whereas 10% answered that they do not. Again an overwhelming 70% answered that they did not know.

Responses have shown that STB aims to strengthen social agreements, and it is constantly trying to achieve its human-level objectives.

Table 11: Respondents' knowledge of monetary support their bank is engaged in

yes	No		I don't know	60,65%
10%	10,35%

Table 5 showed that STB bank 60,65% of employees know about charity or other monetary support that their bank offers; the remaining 10% did not know. 10% reported other types of monetary support defined as scholarships, sports and youth work. 10,35% did not know whether these types of support existed.

Results have shown that STB helps and supports other institutions fiscally and technically.

Table 12: Employees knowledge of bank engagement in local development and cooperation projects

Yes	No		I don't know	70%
0%	30%

70% of the employees reported that they know about their employer's engagement in the local development and cooperation projects, while the remaining 30% did not know of such engagements.

Results have shown that STB is engaged in both local development and cooperation projects.

Through its wide associates, partners and relationships with France and Western Europe countries, STB is totally integrated into the international financial system, and it is engaged with both local banks (Bank of Economic Development in Tunisia and the National Bank of Tourist Development).

3.3 Awareness of CSR's environmental dimension

Table 13: Respondents' knowledge of bank engagement in operating methods that preserve natural resources

Yes	No		I don't know	30%
35%	35%

Table14: Respondents' knowledge about engagements in projects to preserve the environment

Yes	No		I don't know	20%
0%	80%

Table 15: Respondents' knowledge about received warnings concerning noncompliance with environmental policies

Yes	No		I don't know	0%
50%	50%

30% of the respondents reported to be aware of their employer's efforts in trying to preserve natural resources. The remaining 35% did not know. 35% answered that there is no preservation for natural resources. Only 20% knew of projects to preserve the environment or biodiversity and 80% did not know such projects. 50% reported that no environmental sanction has ever been given to their employer, whereas the other 50% did not know.

The above results have shown that, either STB is rarely trying to clarify to its agents its environmental concerns or environmental issues are not considered in this bank.

Conclusion

To conclude, this research is a mere attempt to deal with CSR principles and practices as newly adopted strategy in the financial and banking sector. I aimed to evaluate the implementation of CSR (social, economic and environmental dimensions) in STB bank.

I divided my research into three major parts; the first one is an attempt to define CSR strategy, its principles, its objectives and impacts on banking sector. It also comprises a brief

study for the legal environment in Tunisia precisely the financial and banking sector. The second part is the research methodology in which there is a description of the subject, the data collection, and the procedure, and the last part is the results and discussion. After collecting the data from a questionnaire which is positively and comprehensively answered by the bank agents, it seems to be agreed that the basic provisions of CSR consists of considering society, and ethics as key factors in STB bank strategy. Social and economic practices are considered essential in STB, while environmental practices are unobserved.

While CSR principles are not made within specific thesis, the bank's reports may show what is believed and what is pursued, so the possibility of implementing CSR principles to improve and develop economic, social and environmental practices should start at the bank core. Therefore, there is no concrete proof of CSR principles affecting actions more than good business practices normally would.

Making sure of what the bank reporting guidelines aim to, might clarify the reasons why CSR practices were implemented. No plan can fully evaluate the measure to which CSR is performing responsible business practices rather than marketing.

But CSR for marketing purposes deserves less attention than CSR for responsibility purposes. This dilemma offers another possibility for future study.

Questionnaire: CSR in the Banking Sector

My name is Sonia Rawefi; I'm third year Business English student in High Institute of Applied Studies in Humanities in Sbeitla (university of Kairouan). My aim through this questionnaire is to finish my PFE in order to obtain my Business English diploma. My research deals with CSR strategy in banking sector, in other words how economic, environmental and social questions and concerns are handled by banks internally.

Otherwise, whether this strategy is feasible and applicable in Tunisian banks.

Please choose the most suitable answer for each of the question. (Tick only one box per question).

Thank you for your time and cooperation.

Q1: How well do you know the CSR strategy?

· - Very well

· - Poorly

- Not at all

Q2: Do you know of economic, environmental or social projects the bank you work in is engaged in?

· -Yes

· - No

Q3: Have you ever participated in a CSR project or seminar (for example community cooperation projects or environmental education) conducted by your bank?

· - Yes

· - No

Economic responsibility

Q4: How do you perceive your wages?

· - Average industry level - Below industry level

· - Above industry level

Q5: Does this bank engage in charity or other monetary support for ethical causes (such as

environmental preservation or social development)?

· - Yes

· - No

· -I don't know

Environmental responsibility

Q6: Does this bank engage in operating methods that preserve natural resources?

· - Yes

· - No

· - I don't know

Q7: Does your bank engage in projects to preserve the environment?

· -Yes

· -No

· - I don't know

Q8: Does the bank strategy consider radiation and other environmentally harmful substances in its operations, including transportation?

· - Yes

· - No

· - I don't know

Q9: Has this establishment ever received a warning for noncompliance with environmental

policies?

· - Yes - No

· - I don't know Social responsibility

Q10: Do you feel your work is valued?

· - Yes

· - No

Q11: Does this bank acknowledge and follow human rights provisions?

· - Yes

· - No

· -I don't know

Q12: Does your bank engage in projects attempting to remove child or forced labor?

· - Yes - No

· - I don't know

Q13: Does your employer engage in local development or cooperation projects?

· - Yes

· - No

- I don't know

Q14: How do you perceive your health and safety plan?

· Suitable

· Unsuitable

Q15: Do you attend training given by your employer? How often?

· - Weekly - Monthly

· - Yearly

· - Not at all

Thank you for your collaboration.

List of Appendices

Questionnaire

List of Tables

1' Table 1: Respondents knowledge of CSR .23

1' Table2: Respondents knowledge of social, environmental and economic

projects their industry is involved in 23

1' Table 3: Employees' participation in CSR seminars 24

1' Table 4: Respondents' training participation 24

v' Table 5: Employees' perceived wages 24

1' Table 6: employees' perception of the value of their work 25

1' Table 7: Employees opinion towards their health and safety plan .25

1' Table 8: Respondents' knowledge about their bank protection strategy 25

1' Table 9: Respondents' knowledge about following human rights provisions..26 1' Table10: Respondents' knowledge of removing child labor projects which their

bank participate in 26

1' Table 11:Respondents' knowledge of monetary support their bank is engaged

in 27
1' Table 12: Employees knowledge of bank engagement in local development or

cooperation projects .27
1' Table 13: Respondents' knowledge of bank engagement in operating methods

that preserve natural resources .28
1' Table14: Respondents' knowledge about engagements in projects to preserve

the environment 28

List of Acronyms

· CSR :Corporate Social Responsibilit_y

· STB : La Société Tunisienne de Ban_que

· NGO :Non Governmental Or_ganization

· OECD : The Or_ganization Co-Operation and Development

· ANCE :Electronic National A_genc_y of Certification

· ATMs :Automated Teller Machine

· SICAV: Société d'Investissement a Capital Variable

· UBCI : l'UNION BANCAIRE POUR LE COMMERCE ET L'INDUSTRIE

References

> www.stb.net.tn

> Tunisian financial code > STB agency in Kasserine > STB agency in Tunis

> www.wikipedia.com