Bank pays special attention to compliance with corporate governance principles building open and reliable communication with Bank’s customers, partners, employees, shareholders and other involved parties, as well as ensuring compliance with the Latvian and international laws and ethical standards.
Board – separation of powers
Bank implements its strategy with the help of layered organisational structure – Supervisory Board – Board – structural units and committees.
Rights and responsibilities of the members of Supervisory Board and Management Board are determined in the internal rules and regulations of the Bank. Each Member of the Supervisory Board and Management Board has specific responsibilities. Management Board is the executive institution managing the Bank. Chairperson of the Management Board participates in the meetings of the Supervisory Board. He can also participate in the work of committees and manage them.
Fair labor practices
Policy of the Bank is to encourage employees to be open and express their opinion how the Bank can improve its working conditions. Each year employee survey is organised, presenting results to the board to decide upon improvements. Also employees are informed about the survey results.
Bank cares for the work environment. Every year work environment risks are evaluated and team-building events take place. Once a year all employees are instructed about fire safety and occupation safety risks. There is a mandatory health check for every employee. Bank partially compensates purchase of optics for the office employees.
Employee evaluation system is introduced, – to stimulate employees, clarify their goals and real performance results forming a base for honest remuneration.
In 2017 and 2018, Bank was recognized for its sustainable and socially responsible activities – Bank acquired the Family friendly business status, being placed amongst 31 Latvian companies implementing family friendly entrepreneurship principles in its daily operations. We are proud that we are a good employer and sustainable partner for our clients!
Ethics code of conduct
Bank has adopted a JSC Baltic International Bank Corporate Ethics Code (Code) with the purpose to promote the corporate and employee’s conduct that are ethical according to the general ethics principles and directed towards achievement of the Bank’s short-term and long-term strategic goals. Code determines Bank’s corporate conduct principles and ethical norms of the behaviour of the employees of the Bank, including in the prevention of the conflict of interest and corruption.
Code defines the corporate values of the Bank, sets high professional conduct and ethical standards, in order employees could perform their responsibilities with the highest integrity, maintain objective approach in the fulfilment of their obligations and decision making, adhere to the compliance rules, regulations and standards, respect confidentiality and business secret of the transactions and customers, implement high ethical standards in their operations and behaviour.
Bank strictly adheres to the laws and tax policy of the Republic of Latvia. The Bank is acting responsibly in maintaining its obligations towards the state adhering both to the letter of the legislation and rule of law. The Bank is open for cooperation and maintains a constructive dialogue with state institutions. Bank strengthens mutual trust and facilitates long-term relationships.
Bank publishes its annual reports with the financial data. The experienced specialists who keep track of changes in the national tax policy implement the Bank’s tax policy.
Taxes paid by the Bank are published in the State Revenue Service (SRS) website. Bank does not have SRS administrated state social security and personal income tax debts. MF (Ministry of Finance) and SRS (State Revenue Service) have granted Golden status to the Bank, attesting the transparency of its operations and fulfilment of all tax liabilities in good faith.
Bank cooperates with external auditors to ensure independent control.
Board – transparent practices
Bank has a responsibility to submit the report about is activities and financial results each quarter and once per year (information is published in the website of the Bank). Reports include also information about decisions and new strategies of the management. Decisions of the Supervisory and Management Board are intended for implementation of the responsible employees. They are stored in the Bank’s internal Management Information System and available for authorized users.
Implementation of the ESG approach is the strategic commitment of the Bank. Action plan is developed every year and controlled every half-year for the implementation of ESG approach. Management pay is not yet formally attached to the achievement of ESG results. All employees of the Bank undergo ESG training and are encouraged to implement ESG principles both at work and in private life. A section is developed in the intranet of the Bank „Let’s Live Green” providing tips how to practically implement ESG principles in everyday life.
Supplier code of conduct
When making business decisions in the assessment of potential suppliers, the Bank evaluates them in the context of ESG risks. Bank has developed a survey for the cooperation partners. We assess the ESG risks in three categories – high, medium, low. Bank refrains from cooperation with partners having high ESG risk.
Disregarding the ESG performance evaluation, Bank selects supplier based on the evaluation of the product or service quality and price ratio, compliance with specification requirements, guarantee period, safety, payment provisions, as well as professional experience of the supplier, previous cooperation experience, loyalty etc.
Bribery – anticorruption act
Approach of the Bank towards corruption is declared in the Corporate Governance Policy. Bank pays special attention to the reputational risk, – bribery is one of its aspects. The Bank resolutely opposes corruption. In all its activities, Bank entirely excludes the possibility of promising, giving, requesting, receiving or accepting bribes.
The Bank does not allow situations where an employee who performs financial transactions or any other actions on behalf of the Bank, makes decisions within the framework of his or her duties or considers applications submitted to the Bank has any personal direct or indirect material or immaterial interest.
During the cooperation process with customers and partners situations can arise that are not cases of corruption or bribery but cases when an employee may accept or give gifts or other benefits to customers and business partners on behalf of the Bank. By defining clear principles and establishing action plans for employees, the Bank prevents situations in which employees, customers and business partners can be compromised.
This is the first sustainability report the Bank prepared in 2019.