management of relationships with stakeholders is crucial to resolving issues
facing organizations. (Kim Harrison, 2013). In this note, it is important to
identify which aspects in the satisfaction of stakeholder needs of Sampath bank
is at fault. As discussed
in appendix 01 Sampath bank falls short on meeting the needs of several
important stakeholders as summarized below.
Needs to improve the
social media interactions and customer complain handling mechanism
Needs improvement in
CSR projects for employees
assessment mechanism needs to be enhanced.
transparency and community engagement
importance of each stakeholder category (appendix 01), Sampath bank is seen to
be making several mistakes as depicted above in table 03, which needs to be
addressed with utmost importance.
behind the key issues in reputation management of Sampath bank both offline and
online can be identified as the lack of monitoring and identifying the external
and internal factors that impact on Sampath bank’s reputation. Further there are no proper measures taken to
actively manage the online reputation via social media where in fact, the
networks are not utilized at the optimum level to shape the image of Sampath
social media listening to improve the reputation management of Sampath bank.
In the intention of resolving the issues highlighted
in section 1.2.5 there are many
frameworks introduced, out of which , the most relevant to Sampath bank is
van Riel and Balmer (1997) explains the link
between corporate personality and reputation through the use of 4 elements
namely the culture, strategy, corporate identity and the environment, and
further explains how the reputation impact on the outcomes of the organization. In par with
the issues highlighted above, it is recommended that, investments are made on
social media listening. For this, investments might be needed for necessary
infrastructure data mining and data warehousing, and if needed, recruitment of
specialists’ services, or, this process can be outsourced as well. Sampath bank
can create a social media listening and command center benchmarking how
companies such as Dell and Cisco has implemented successfully. Thus, the
following content explains how a social media listening strategy should be
implemented through this model, in order to enhance the reputation management
of Sampath bank.
Social media listening
As evaluated in appendix 06, the traditional culture of Sampath bank will have
to be changed to increase the involvement in technology and be more
technology-driven. Although this may be difficult to be implemented in a bank,
the procedures of the HSBC bank can be taken as a benchmark.
2. Strategy- Integrate social listening
to be a part of the overall strategy. Include social media listening findings
and insights in strategy formulation and in setting the goals for encouraging
proper reputation management at every level of Sampath bank.
As evaluated in appendix 03, aspects of modernity and boldness of the
personality, will have to be further improved while aspects such as technocracy
has to be maintained and improved further. Control systems such as quality
systems should be used for the effective implementation of insights arrived at,
via social media listening while the bureaucratic nature will have to be
Referring figure 1 in section 1.2, it can be seen that Sampath bank’s
communication needs to be two-way and open. Incorporating a Social media
listening system into communication will allow Sampath bank to identify exactly
what the external parties are talking about, and to respond to them in the most
effective manner. Two-way communication will be established by responding to
customers in a timely manner and listening to their feedback and improving the
services to suit their needs. (Source: https://www.huffingtonpost.com/catriona-pollard/social-media-monitoring-i_1_b_6149786.html)
By gaining insights on what the customers have in mind as to how they wish
Sampath bank to be, symbols can be altered and introduced to deliver the exact
positive image that the customers prefer.
4. Environment- The influence of the
environment will have to be considered with regard to each of the elements.
With the proper integration of these
elements with social media listening, Sampath bank can pave its way to manage
the reputation in a very efficient manner, and influencing the outcomes such as
the financials, HRM etc. to end up with positive results.
Some of the
best practices to be paid attention to, in the social media listening process
as per Christina Newbery (2017) can be stated as follows.
what the people talk about, instead of just what they are saying.
engaging with customers actively, through social media.
from the competition.
Commercial bank’s and
HSBC’s practices can be set as benchmarks.
with customer service, content marketing and product development.
marketing campaigns to suit different segments in a unique manner.
the data and identifying insights.
and organizing the data and identifying the action needed to be taken for
effective management of reputation.
1.3.2 Managing the
of implementing social media listening within Sampath Bank will inevitably lead
to massive changes in many aspects of the organization. For instance, as
mentioned in appendix 02, the bank tends to be less technology oriented and the
culture within organization will act as a barrier for the proper implementation
of this change. Thus, the management is required to take necessary actions as
suggested below to manage the change that results from this investment.
the employees as to why this change of social media listening is important for
Sampath bank to enhance its reputation and encourage them to bring into effect,
this new concept with the maximum contribution.
a change team including a representative from each department of the bank to
cultivate the feeling of participation among the staff and thereby ensure the
support from the staff.
incentives and reward schemes related with activities related to managing
reputation through social media listening.
the training hours on technical matter related to social media listening and
monitoring, and being supportive towards the improvement of the staff.
1.3.3 Impact of social
media listening on Sampath bank’s reputation.
impact of social media listening in the reputation management of Sampath bank
is listed below.
Respond to customer complaints in a timely manner, avoiding
escalation of disputes
Enhance the online image and brand by showing responsiveness and
interested in your customers
Forward the conversations about Sampath bank’s brand to raise
awareness of the services
Listen to feedback to help develop services that accurately fit
the customers’ needs
is important to note that there may be issues in analyzing the data gathered
via social media where the customers may use sarcastic language to comment on
certain services. To filter these out, Natural Language Processing can be used.
video will discuss extensively on this matter. https://www.youtube.com/watch?v=29v-md_Coj0
In order to
cater for the gaps that exist inn Sampath bank’s reputation management, Social
media listening will have to be implemented undergoing various changes within
the organization. The investment will make a positive impact on the reputation
by allowing to understand what the customers and other external parties talk
about Sampath bank and identifying insights to bridge the gaps in delivering to
the expectations. 2.1
Critical evaluation of the role of CSR in strengthening the reputation of
the PwC 2016 Global CEO Survey, 64% of the CEOs say that CSR is core to their
business than a stand-alone program. This depicts the growing importance of CSR
to organizations. CSR activities are focused primarily on building a company’s
reputation with little real benefit to society (McKinsey, 2009). A Survey done
by the Corporate Responsibility Association states that nearly 50% of the
companies surveyed were targeted by activist citizen groups, and are now
engaging with non-governmental organizations to improve public perception. Given
these statements, the following content will analyze the role of CSR in strengthening
reputation of the organizations
Buchholtz (2000, cited in Jobber, 2007) discusses 4 main layers of CSR.
projects of “Build the change” and “Sustainable Materials Center” has earned
them the first place in the RepTrak rankings for CSR companies 2017
Google has dropped its RepTrack rank rankings for CSR companies
2017 due to issues such as countering comments about Muslims made by
President Donald Trump
and Gamble, Honda and Walmart donated millions of dollars in cash and
products to relief efforts and decided not to publicize their contributions
fluctuations in the reputation of various organizations with relevance to the
CSR activities they perform clearly reflect the strong link between the two.
company’s reputation reflects what stakeholders think and feel about the firm
(Fombrun, 1996). CSR activities performed by a company influences the
perception of the stakeholders regarding the company, thereby affecting the
reputation. This may vary in accordance with the type of CSR activities they
perform, how they publicize it etc. Social
responsiveness can have a significant role in constructing favorable
relationships with primary stakeholders upon whom the continuity of firm is
dependable (Clarkson, 1995).
can be examined from various aspects and CSR can be seen as one possible
dimension of it (Zyglidopoulos, 2001). As was discussed in table 1.1.1, it was
made clear with various statements made by authors, that reputation and the
image of a company are closely related. CSR, in this context, can be used to
make a great impact on the image, thereby influencing the management of
reputation in a both positive and a negative manner.
is a way in which a company can depict the values that they believe in, to the
public including the stakeholders. As per Chatman (1989), people are fascinated
to organizations they think have similar values and norms as they regard
important. This creates a direct link to how the CSR activities will be an
important factor in managing the reputation of a company, through the values
evaluation of the current CSR strategy of Sampath bank.
table will analyze how well Sampath bank carries out CSR and the strategy used
based on the ripple bottom line introduced by Elkington (1994).
The bank has been earning profits for the
past 5 consecutive year where the profit after tax for 2016 grew by 48.8%
The total investments on CSR for 2016 is
Rs.20.3Mn, which shows a growth of 33% compared to 2015
185 new employees were recruited while the
profit per employee records Rs.2.3Mn for 2016.
The stakeholder obligations are duly
fulfilled such as paying the taxes and reasonable wages etc.
More than 566,000 beneficiaries were reported
with 68 partners for 2016.
Providing education for development
Empowering the community
My book club, All-island
inter-school quiz competition, Island wide seminar series conducted, Hope for
a life (Assistance for national hospitals, reconstruction of Maduella
bridge),Helping hands disaster relief program, Developing leaders of tomorrow,
Sampath Saviya entrepreneurship development program.
Reducing paper waste
Environmental CSR activities
printing policy at branches which eliminate the wastage of printed mandates/
applications by 25%
“Six eco guidelines”, which all employees are requested to embed into their
initiative to restore the damaged coral reef along a 2 Km stretch of the
beach in Matara
to the NCRE (nonconventional renewable energy) sector
Fair and equitable procurement
Supplier risk management
procedure that creates a healthy level of competition where all applicants
are considered on an equal basis, the Bank has registered more than one
supplier or service provider in order to obtain services without interruption.
Customer privacy and data security
Customer health and safety
Establishing a Board approved Online
support the cheque clearing process, Signing up with GT Nexus, the world’s
largest cloud based business network
Training and development
Safety and wellness
Training Needs Analysis is conducted
annually. Library facilities, The Harvard Business School, USA, Scholarship
Program, Rewards for children
program, MyDoc platform medical consultation solution that gives corporate
employees online real-time access to medical specialists across the country
at zero cost
Table 8 Source: Annual report 2015/16
As Sampath bank meets the criteria that are set
by the Companies Act 2013, the CSR activities as per Schedule VII of Companies
Act 2013 can be used to evaluate the CSR strategy of Sampath as follows.
Fulfilled or not
Eradicating hunger, poverty, promoting sanitation
Promoting education including employment enhancing
Ensuring environmental sustainability
Promoting gender equality, empowering women and setting up
facilities for senior citizens
Funding technology incubators with academic institutions
Protecting national heritage
Training to promote sports
Measures for benefit of armed forces, veterans and
Contribution to specified funds
Source: Deloitte 2016
It can be seen that the overall CSR strategy of
Sampath bank is more biased towards social responsibility whereas environmental
and economic aspects are given less attention and focus compared to the former.
Also, it lacks a wholesome approach as per table 7 where some aspects are not
paid attention at all, in the strategy. More importantly, the lack of a set of
clearly specified objectives is highlighted as a key issue. No proper mechanism
is seen for setting objectives for the CSR strategy prior to the financial year
which would create a clear picture as to what should be accomplished within the
year. Further, the communication of CSR activities is another area in which
Sampath lacks in, where the public is not properly informed of the CSR
activities and programs carried out.
Improvements to the CSR strategy of Sampath bank to enhance the reputation
The following content the issues highlighted in section 2.2 will be addressed
by providing relevant recommendations.
1. Include a more
wholesome approach to the CSR strategy.
In focusing on the community, it is recommended that Sampath bank
initiate a program that focuses on in facilitating senior citizens such as
setting up old age homes and such other facilities for senior
citizens providing health facilities etc. so that the “People” aspect will
cover both the young and the elderly. Especially with the most important
customers of banks being children, owing to the importance to attract customers
from their younger ages itself, due to the high customer lifetime
value than other industries, the biasness of the CSR activities towards the
younger population will cause potential misjudgments and damage to the
reputation of the bank.
2. Dissect the focus
to profit and planet aspects more.
The biasness needs to be addressed by engaging in more environmental
activities such as environmental conservation awareness campaigns. Programs
like these can be connected with the educational programs done for the
community, which are carried out addressing the children and the youth as
mentioned in table 6 above. A balanced CSR strategy will communicate to the public,
the concern of Sampath bank, of every aspect of the society to improve the
society as a whole making a positive image for being responsible and reliable.
3. Improve the
communication of CSR activities.
The communication of the CSR activities carried out is seen to be at a
very low level and needs to be organized properly. A suitable form of media in
addressing the increasingly tech savvied society would be to use social media
which also will be beneficial for the bank in terms of costs compared to the
other options available. It is recommended that separate sustainability report
is prepared in detail for communication purposes. Sampath bank can take Dialog
Axiata PLC. As a benchmark with relevance to this. Thus, it is important that
Sampath bank take actions to communicate whatever CSR activity done, in the
proper way, using proper content and suitable media for the task in order to
improve the image of the bank.
4. Form a clearly
defined set of objectives
A demonstration of a clearly defined objectives with relevant
investments should be prepared for every financial year so as to give an idea
about which form Sampath bank’s CSR activities take, for the coming year.
This will aid the management in creating an impression in the stakeholders
regarding the clear view and strategy that the bank has towards sustainable practices.
Also, this will portray a positive image of Sampath bank with regard to the
clear understanding that the management has with relevance to the contributions
of the bank to the external society.
CSR plays a critical role in reputation management in that, the proper
management of it will directly influence the reputation of a company. Thus it
is very clear that the CSR strategy of Sampath bank should be executed in the
proper manner and be given much importance as suggested, in order to make a
favorable impact on the reputation.