On November 19, 2010, General Manager Hua Bing of Legal and Compliance Department of Industrial Bank went to Shanghai to attend the Sixth Annual Banking Compliance Symposium upon invitation and delivered the speech “Corporate Social Responsibilities and Management of Reputation Risks”.
This annual banking compliance symposium was held by the Shanghai Banking Association around the theme of “Compliance and Management of Reputation Risks”. Based on the in-depth discussions of both Chinese and foreign banks over topics of “Reputation Risks in the Overall Risk Management of Banks”, “Compliance and Management of Reputation Risks”, and “Corporate Social Responsibilities and Management of Reputation Risks”, the symposium aimed to further extend and enrich the meanings and functions of management of compliance risks in banks and effectively improve the effect of management of compliance risks in the banking industry.
Since the IB has carried out a number of explorations and made certain achievements in promoting banks to perform social responsibilities and facilitating the “harmonious interaction among the environment, economy, society and enterprises”, the Shanghai Banking Association chiefly invited the director of the IB’s compliance department as a guest to deliver a speech at the round table conference in this annual compliance symposium. At the conference, General Manager Hua Bing of the Legal and Compliance Department of the IB, starting with a bank case, introduced to the attendees the relationship between the social responsibilities of banks and reputation risks and the possibility it changing into other risks. Meanwhile, he also interpreted the social responsibilities of banks in the perspective of compliance, considering that social responsibilities of a bank had no longer been limited to the category of business ethics and commercial morality, but rather they have been upgraded as a type of compliance requirements. Improper performance of social responsibilities will also lead to reputation risks, so prevention is more imprtant than treatment. In prevention management, disclosure and communication are two avenues guaranteed for managing reputation risks, and a good management capability for social and environmental risks may enable the bank to explain its own behaviors to the media, NGO’s, etc., and resolve reputation risks when confronted with any negative impacts. By interpreting the case, General Manager Hua Bing shared with the attendess the IB’s understanding of social responsibilities and reputation risks. He asked the banking industry to stress sustainability and called all banks to explore this further.