Access Bank, Zenith, GTCO, Five Others’ Donations Up 1.10% To N24.85bn In 2021
Despite the ravaging effects of the Covid-19 pandemic on global businesses, eight commercial banks in Nigeria donated a total of N24.85 billion to the needy in 2021, giving back from their earnings to the communities that made them.
In a gesture that indicates a good corporate citizen, Zenith Bank Plc, Guaranty Trust Holding Company (GTCO) Plc, United Bank for Africa (UBA) Plc and Access Bank Plc better their 2020 performance by N230 million.
Altogether with Stanbic IBTC Holdings Plc, Wema Bank Plc, First City Monument Bank Plc and Fidelity Bank Plc, the eight banks improved on the 2020 donations by 1.10 per cent.
A total of N24.58 billion was donated in 2020 by the eight who increased their donations to N24.85 billion, representing an increase of N230 million or 1.10 per cent growth.
United Nations Industrial Development Organisation(UNIDO) described Corporate Social Responsibility(CSR) as a management concept whereby companies integrate social and environmental concerns in their business operations and interactions with their stakeholders.
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Checks into their books show the eight banks donated along the environmental, ethical, philanthropic and economic responsibilities highlighted in the CSR concept.
Seven are in the billions of Naira category while Wema, though still in the hundreds of million bracket, tripled its 2021 donations. The current harsh operating environment in the country is also reflected in two of the eight banks, Access Bank and UBA whose donations dropped in 2021
Breakdown of the figures sourced from the banks’ books revealed that although the donation by Access Bank Plc dropped in 2021, it still led the pack with the largest sum of CSR in the reviewed period.
The Herbert Wigwe-led financial institution gave out N8.201 billion in 2021, down by 6.6 per cent from N8.780 billion the bank disbursed in 2020.
The lender’s community projects include the Malaria to Zero, the “W” Initiative and the Access Bank Lagos Marathon- which drew between 80,000 to 100,000 athletes participating in the 42Km full marathon and the 10Km fun run.
Guaranty Trust Holding Company (GTCO) followed with N5.843 billion in a corporate donation in 2021 and above the N5.148 billion the bank donated in 2020. It represents a 13 .5 per cent surge in CSR for the year, while Zenith Bank plc also grew its social responsibility by 30. 3 per cent to stand at N4.450 billion in 2021, up from the N3.414 billion the previous year.
Under the period in review, another tier -1 Bank, United Bank for Africa (UBA) saw its CSR donation dip astronomically by 72.5 per cent, from N5.104 billion in 2020 to N1.405 billion in 2021 in contrast to Fidelity Bank Plc whose CSR donations leapt by 156.9 per cent year-on-year to N1. 377 billion in 2021 from N536 million in 2020
First City Monument Bank (FCMB) disbursed N1.5 billion in the twelve months of 2021, rising by 111.6 per cent from N709 million released the previous year, while Wema Bank Plc and Stanbic IBTC Holdings Plc recorded 217.1 per cent and 104.5 per cent CSR growth respectively in the year in review.
Wena Bank leapt from N228 million in 2020 to N723 million in 2021, while Stanbic IBTC CSR rose to N1.356 billion in 2021 from N663 million in 2020.
Speaking on its CSR initiatives, Access Bank Plc said it is committed to economic growth and prosperity through impact on economic growth and prosperity impacting the communities in which it operates.
“As one of Africa’s largest banks, we are doing our best to drive economic growth and prosperity within the communities in which we serve,” the bank stated.
“Each year, and as part of our strategic corporate responsibility objectives, we are committed to channelling noteworthy resources and funds into impacting people’s lives positively and responsibly. Indeed, our commitments have been largely focused on the United Nation’s Sustainable Development Goals (SDGs).
Over the years, Access Bank’s areas of focus in community investment have included education, health, gender equality, arts, and sports. Many of these efforts to invest in, and grow solid relationships with its communities have included the widening reach of its market presence, indirect economic impacts, grievance mechanisms, public policy, anti-corruption efforts, charitable donations and employee volunteering.
“These efforts are jointly secured, for ourselves and the people around us, a future of excellence.”
One of its longest-running community projects is the Access Bank /Lagos State Marathon- which brings together, between 80,000 and 100,000 athletes including local and international to participate in the 42Km full marathon and the 10Km fun run. Winners(male and female) in the elite category take home $30,000 prize money, $20,000 for runners up while third-place finishers will get $15,000. The event is currently in its seventh edition.
For Zenith bank, its community initiatives are driven in a structured and sustainable manner to lead to the greatest possible impact on its beneficiaries.
“As a responsible corporate citizen, giving back to the communities where we carry out business is an integral part of our overall strategy. Our aim is to ‘give back in a structured and sustainable manner that ensures the greatest possible impact on our beneficiaries,” Zenith Bank noted.
“To achieve this, we periodically carry out need-gap analysis in target communities to be able to accurately determine areas where our support is most needed. This enables us to deliver CSR projects that are relevant and impactful. In line with the principles of the United Nations Sustainable Development Goals.
The lender added, “Zenith Bank is committed to the improvement of the socio-economic condition of the communities where we do business. Our social initiatives are geared towards eradicating extreme poverty, encouraging skills development and capacity building, employment creation, and supporting government’s efforts at achieving inclusive growth and development.”
Lofty as these initiatives are, there are however complaints that banks’ donations and charitable gifts are not always justified, except during a disaster and events that are beyond human controls like the Covid-19 pandemic.
“If you check some of these bank’s donations and charitable gifts, it sometimes goes to friends and associates or some of the executives of the bank, according to a shareholder of one of the banks who wanted anonymity.
“The society, where these banks operate, are sometimes ignored while the interesting part is that these funds belong to shareholders who have no say in the disbursements”.
“We have raised these issues concerning banks’ ridiculous donations in the past, yet nothing has changed.”
He explains that this is why some banks no longer list out the names of the beneficiaries of the donations in their audited financial account as demanded by the International Financial Reporting Standards (IFRS) which all the banks have adopted.
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