To our stakeholders:

I am pleased to confirm that the RZB Group reaffirms its support of the Ten Principles of the United Nations Global Compact in the areas of Human Rights, Labour, Environment and Anti-Corruption.

In this annual Communication on Progress, we describe our actions to continually improve the integration of the Global Compact and its principles into our business strategy, culture and daily operations. We also commit to share this information with our stakeholders using our primary channels of communication.

Sincerely yours,

Johannes Schuster,
Member of RZB Managing Board,
Responsible for RZB Group Corporate Responsibility

The RZB Group is obliged to promote and respect human rights within its sphere of influence. The RZB Group Code of Conduct (CoC) defines the basic values of the bank and constitutes the foundation of a corporate culture that is in conformity with the law and that is orientated on ethic principles.

It will neither directly nor indirectly finance any transactions, projects or parties involving or involved in the use of forced labour (including bonded labour) or child labour, or

- violations of the European Convention on Human Rights;

- violations of the obligations under labour law and social law established by the respective country;

- violations of the applicable regulations issued by international organisations including without limitation the corresponding UN Conventions; or

- violations of the rights of the local population or the indigenous peoples.

The RZB Group constitutes several measures to raise awareness and train employees on Human Rights. The CoC is binding for all employees of the RZB Group, and it ensures that the highest standards are observed in our business and ethical behaviour.

Cultural diversity and a commitment to providing equal opportunities are core values of the RZB Group’s Human Resources policy. Multiculturalism is an integral component of the corporate culture, although the integration of employees from diverse cultural backgrounds is a major challenge. The RZB Group regularly stages events with internal (e.g. staff and shareholders) and external stakeholder groups to improve the measures.

The RZB Group does not tolerate any Human Rights violations. If employees obtain knowledge of material breaches of the CoC, they must report the matter to the line manager, the Local Compliance Office or the Chief Compliance Office without delay. Employees can also opt to report breaches to the Compliance Officer anonymously. All reports are treated as confidential. The bank ensures that nobody will suffer any career disadvantage on account of reports made in good faith.

The RZB Group respects the opinions of others as well as their personal dignity, privacy and personality rights. The bank does not tolerate any kind of discrimination and harassment, for example on account of a person‘s nationality, culture, religion, skin colour, sex, sexual orientation, age or physical handicap.

The Group offers all staff equal opportunities for identical levels of performance. This principle applies from the recruitment stage onwards, and appropriate selection procedures are used to ensure that all applicants are evaluated against the same benchmarks.

RZB Group has a works council that promotes employee interests in it’s dealings with the managing board. Representatives of the works council are also members of the supervisory board.

The works council represents employees in all matters of labour legislation and are committed to representing staff interests. They act as a link between the managing board and the employee representatives. Also, all legal requirements are followed. Healthcare services are provided by the RZB company medical officer. Support is also available for staff suffering from stress and symptoms of burnout syndrome.

The bank raises awareness of and heightens sensitivity to equal opportunities within the RZB Group. It also extends staff appraisal system: goal-setting and assessment interviews with 90 per cent of staff, and development interviews with 80 per cent of staff.

The RZB Group increases frequency of training and development modules for all staff and ensures broad levels of qualification to improve staff employability.

One of the Group’s main priorities is developing products and services that promote sustainable development.

The RZB Group complies with all of the local, national and international environmental regulations that apply to its business activities and services. It is environmentally aware and constantly strives to improve its environmental performance.

The Group offers a range of training and development programs in environmental protection and environmental management. This expertise enables staff to identify and minimise the potential environmental impacts of business activities.
The bank participates in pilot projects aimed at developing examples of best practice and designs reference projects for Group-wide knowledge transfer.

Based on the EU directive on the energy performance of buildings, the RZB Group also specifies minimum requirements as well as targets for overall energy efficiency of buildings and rental properties.

The financing of or any participation in any transactions and/or projects which put the environment at risk with lasting effect (for example: destruction of the rainforest or pollution of the environment and waters) are not in accordance with the business policy of RZB.

If unsure about the direct or indirect effects of a transaction on the goals the RZB Group wishes to achieve under its environmental policy, advice should be sought from the Compliance Officer.

Further, the RZB Group aims to introduce a research project to examine collection of environmental data across the life cycle “footprint” and develop appropriate initiatives.

The RZB Group does not tolerate any form of bribery and corruption, nor does it accept or grant any improper advantages (inducements) of any kind, irrespective of whether the person offering or demanding such advantage is working in the public or in the private sector.

The RZB Group strengthens the focus on prevention of corruption in staff training programmes and constantly evaluates and adapts the CoC and monitor compliance.

In 2009, together with the implementation of new anti-corruption regulations, an intensive training was conducted for top management. All board members in Austria and Central and Eastern Europe received training over four months. Since then training has taken place whenever there has been a change in management. All new employees have to undergo compliance training, which has included information on anti-corruption measures since 1 January 2010. Broad-based training programmes have taken place at all network banks, although the exact number of participants has been recorded locally and not at the head office.

The compliance department continually monitors the activities of all 15 network banks and their branches, via enquiries, assessments, updates and feedback. This ensures that the management of the RZB Group is always informed of steps that may need to be taken with regard to compliance in good time, and that effective measures can be implemented.

If employees obtain knowledge of material breaches of the CoC, they must report the matter to the line manager, the Local Compliance Office or the Chief Compliance Office without delay.
In addition, in June 2010 a whistleblower hotline was set up, which offers all RZB Group employees worldwide the possibility to anonymously report breaches of the CoC.