Corporate Social Responsibility Activities 

As a financial institution operating under the Statement of Good Corporate Governance Principles and Corporate Social Responsibility (CSR) Principles, KASIKORNBANK has embraced Corporate Social Responsibility (CSR) as part of our efforts toward achieving sustainable development. The CSR policies and activities are based on the following criteria:

• To strictly adhere to our Statement of Business Conduct, and to participate in social development and environmental protection
• To encourage officers at all levels to strictly abide by the Code of Conduct and CSR Principles
• To launch CSR activities for the benefit of all stakeholders
• To arrange workplaces by placing considerable emphasis on safety, occupational health, environmental concern and facilitation for officers and customers
• To promote environmental preservation and contribute to society under a legal framework
• To avoid grants of credit for any projects in contravention of the laws.

            The Bank recognizes our part in society toward support of public service projects and programs to assist community development and improving the environment in ways that promote a better quality of life for all. We continue to place great importance on environmental conservation.

            In 2008, the Bank formulated a CSR plan via different departments and set aside budget for CSR activities at 1-1.5 percent of its annual net profit (or around Baht 150-250 million). CSR activities under the prescriptive guidelines set by the Stock Exchange of Thailand can be summarized in six categories, i.e.,

1. Corporate Philanthropy&
2. Community Volunteering
3. Cause Promotion
4. Cause-Related Marketing
5. Corporate Social Marketing
6. Socially Responsible Business Practices

Our CSR activities and program can be categorized into four areas, i.e., society, environment, customers and employees. In detail:

Society

            The Bank has cooperated with both public and private agencies in initiating and organizing activities for social contributions. These include provision of support for education, arts and culture, sports, religion, public health, disaster relief and development of community, youth and the underprivileged of society. These activities included:

Seminar on “Holistic Approaches to Harmonious Living”

          Her Royal Highness Princess Maha Chakri Sirindhorn graciously presided over the 5^th Sino-Thai seminar on “Holistic Approaches to Harmonious Living” to promote development of better health among the general population, especially in food, exercise and prevention of disease. The event attracted around 500 participants, including Thai and Chinese academics and interested members of the public.

KBank Donations to Chinese Earthquake Victims

Mr. Banthoon Lamsam, Chief Executive Officer, KASIKORNBANK, donated a sum of Baht 1,000,000 and 1,000 relief kits to Sichuan earthquake victims, at the reception room of the Embassy of the People’s Republic of China in the Kingdom of Thailand.

KBank Scholarships

          The Bank has always placed significance on education. As part of the Bank’s efforts to promote education, the Bank provides scholarships to support education and student thesis writing at several universities every year. They are, for instance, six scholarships for graduate study at Chulalongkorn University at Baht 15,000 each, totaling Baht 90,000; one scholarship worth Baht 223,000 for graduate study at the Faculty of Economics, Thammasat University; and two scholarships worth a total of Baht 1,000,000 for undergraduate students of the Faculty of Communication Arts at Huachiew Chalermprakiet University. In 2008, the Bank donated a sum of Baht 2,400,000 to support the Chinese and Japanese Language Training Project of the Faculty of Arts, Chulalongkorn University.

KBank’s Support for Art Exhibitions

The Bank sponsored the arrangement of a contemporary art exhibition at King Mongkut’s Institute of Technology Ladkrabang, an art thesis exhibition at the Faculty of Liberal Arts, Prince of Songkla University, Pattani Campus, as well as a young artist contest and art exhibition showcasing artistic works of lecturers at the Faculty of Painting, Sculpture and Graphic Arts, Silpakorn University.

Royal Kathin Robe Presentation Ceremony for 2008

          As part of our effort to support Buddhism, the Bank organizes a Royal Kathin Robe Presentation Ceremony every year. In 2008, KASIKORNBANKGROUP held a Royal Kathin Robe Presentation Ceremony at Wat Yansangvararam Voramahavihara, Bang Lamung District, Chon Buri, which was presided over by Her Royal Highness Princess Maha Chakri Sirindhorn. Aside from presenting Kathin robes, four necessities for Buddhist monks and other private monk utensils, the Bank set aside a sum of Baht 18,000,000 in donations from KBank’s Board of Directors, KGroup employees, customers and the general public all over the country for the temple’s maintenance and renovation. Another portion of donations, totaling Baht 2,800,000 was allocated for charitable activities via 19 foundations and organizations. 

Disabled Athletes Joined Trip to Beijing 2008 Olympic Games    

           KBank organized a trip to the Beijing 2008 Olympic Games for 30 disabled athletes and their coaches, as part of the KBank Olympic Experience Program, so as to provide moral support to dedicated disabled athletes, encouraging them to reach for the stars in the international arena.

KBank Encourages Thais to Learn Treasured History from Documentary entitled “Centennial Celebration of Klai Ban” (‘Far Away from Home’)

           The Bank took great pride in its role in the production of the documentary entitled “Centennial Celebration of Klai Ban”, made by Thai PBS TV station. The quality documentary is part of a tribute to King Rama V on the occasion of the centennial anniversary of his last journey to Europe, in the Year of the Goat, Rattanakosin Era 126 (beginning with the founding of Bangkok as the nation’s capital in 1782).

           In addition, the documentary is now presented in a DVD set for collectors as part of the Bank’s effort, in cooperation with the documentary’s producers, to publicize King Rama V’s talent in literary works. All sales proceeds will be donated to Chulalongkorn University’s education development program to follow in his footsteps in supporting education, as evidenced from the seed capital given by His Majesty for the establishment of Chulalongkorn University 100 years ago.   

2008 New Year’s Celebration for Underprivileged Youth

           The Bank holds a New Year’s celebration for underprivileged children at KBank Club every year. In 2008, 421 underprivileged and disabled youth from Pakkred Home for Boys, Foundation for The Better Life of Children, Pakkred Home for Children with Disabilities, Rajvithi Home for Girls and Ban Kru Noi were taken to see a movie, played games and joined quizzes in the morning before taking part in a celebration including a football match, entertainment program, book and gift-giving.

Seaside Tour Project and National Children’s Day 2008 Celebrations

           KBank has always recognized the importance of activities for underprivileged children. Every year, the Bank takes more than 400 underprivileged youth from different communities and youth shelters to the seaside to join recreational activities at the Bank’s resort facility in Suk Samakkhi Village, Hua Hin, Prachuap Khiri Khan. As part of the Bank’s effort to promote child development that will contribute greatly to the nation, the Bank gave 20,000 sets of stationery supplies via more than 60 foundations, temples, educational institutes, youth centers, youth shelters and communities, for celebrations of the National Children’s Day in 2008.

‘Mettadham’ Project

           The Bank launched the ‘Mettadham’ project in 2006 to promote donations among KGroup and P Companies’ employees for a better life among less-fortunate children, the aged and the disabled.  Items donated through the ‘Mettadham’ website are clothes, bedding, bags, shoes, books, toys, electrical appliances, i.e., rice cookers, electric hot water pots, radios, TV sets, refrigerators, sports equipment, musical instruments, walkers  and eyeglasses, etc.  In 2008, the ’Mettadham‘ project received 7,559 donated items from 2,252 donors across the country for distribution to the needy via 92 organizations/foundations.

Exemplary Organization

           The Bank has been renowned for our exemplary success in organizational management. In 2008, more than 40 public and private organizations, plus domestic and foreign educational institutes, paid visits to the Bank for presentations on organizational management. Selected presentation topics included human resources management, economic situation, banking services and good corporate governance. This was to obtain first-hand knowledge and learn from our experience of more than 60 years for development of their organizations and society at large. 

KBank Club’s Sports, Art and Music Camp for Underprivileged Youth Program

            The Bank cares for and gives significance to underprivileged children living at youth shelters. Every year, we organize activities related to sports, music and arts to give these children the opportunity to join activities which are beneficial to their health and other skills for living.  In 2008, the Bank organized the Sports, Art and Music Camp for Underprivileged Youth Program to encourage youth to spend their free time wisely. Training classes for football, basketball, volleyball, chorus singing, art and painting were organized and taught by well-known instructors. These useful activities have been organized for 15 years now, with details of program participants as shown below:

Support for Project on Volunteer Camps for Rural Development 

            The Bank has a policy of encouraging students to voluntarily take part in rural development activities to help them learn by experience, providing them with a broader perspective on the Thai rural society.  The activities include projects for local development in cooperation with villagers, and community development. This is aimed at enhancing students’ knowledge, experience and skill to make contributions to the nation after graduation. The Bank set aside budget to support projects related to student volunteer camps for rural development of various educational institutions.

Thai Farmers Bank FoundationProvided Rainwater Containers — the Water for Life Project

Thai Farmers Bank Foundationprovided a sum of Baht 2.6 million to the Population and Community Development Association for the purchase of 81 water containers for public use in rural villages nationwide, as part of the Bank’s Water for Life project to relieve drought for rural people in the dry season.

KBank Donates Computers to Schools in Remote Areas

           Technology is an important factor for the country’s development. However, it is evident that many schools do not have sufficient computers for educational purposes. Realizing this need, especially among schools located in remote areas, the Bank has made it customary to donate used computers and related IT equipment which is still in good condition to schools, temples and youth centers. In 2008, KBank donated a total of 329 computers to 38 schools nationwide.

Environment

Occupational Health and Safety

The Bank takes due care to ensure that our buildings are safe, hygienically clean and have pleasant environments for efficient work, as well as being convenient for customers and persons doing business with the Bank.

            The Head Office building and other high-rise buildings of the Bank are designed and equipped with standard fire protection systems meeting US NFPA (National Fire Protection Association) standards, which are well-accepted worldwide. Important systems within the buildings include an automatic fire alarm system, fire extinguishing system, smoke ventilation system, compressed air systems for each floor, fire exits and an automated building control system. Moreover, the Bank has built a helicopter-landing pad on the rooftop of the car parking garage building for emergency evacuation.

            The Emergency Master Fire Plan for the Bank was drafted by experts and is updated continually. The Bank regularly arranges fire drills, at least once a year, so that staff who are responsible for fire fighting administration have the required knowledge and expertise to assist in building evacuation according to these plans.

            The sanitation systems installed in the buildings are there for the health and safety of personnel working in these buildings, and include such systems as a two-stage air filtration system plus air conditioning for clean air, free from outside air pollution; lighting systems with standardized lighting values for comfort to eyesight; and ozone-treatment drinking water purification systems, etc. In addition, high-quality electrical appliances are used within the buildings for energy savings.

            The environment in society and in communities is always a point of concern for the Bank. The Head Office Compound is a pleasant space with landscaped gardens, shade-giving trees, fountains, sculpture and a recreational ground etc. Emergency electricity generators are installed with exhaust systems that filter out smoke and smells, and have noise abatement devices to prevent disturbing nearby communities. The highly efficient waste water system provides treated water to the gardens and for use within the cooling system. Therefore, apart from helping to preserve the environment, the system also helps the Bank to significantly reduce water utility costs.

In addition, the Bank has a policy of promoting environmental conservation and safety within the Head Office building and other high-rise buildings of the Bank. The Bank’s policy on building construction and improvement is consistent with environmental standards established by the Leadership in Energy and Environmental Design (LEED) Green Building Rating System, developed by the US Green Building Council (USGBC). These environmental standards have been applied to the improvements of KBank’s Chaeng Watthana Building, which is scheduled for inauguration in February 2009. The Chaeng Watthana Building is aiming to achieve a LEED Gold Rating. The Bank is planning to upgrade the Rat Burana and Phahon Yothin buildings to meet the LEED certification standards, as well.

KBank Introduces Carbon Credit Program to Prevent Global Warming

Greenhouse gas emissions are precipitating global warming, causing severe climatic changes in many countries. To help address this problem, the Bank has introduced the “Energy Efficiency to Cope with Global Warming by K SME Care” project, aimed at assisting small and medium enterprises (SMEs) in implementing efficient, energy-saving projects. This program is being offered in cooperation with the Thailand Greenhouse Gas Management Organization (TGO), which will help SMEs implement greenhouse gas reduction programs and sell carbon credits in overseas markets.

Green Calendar        

            Reflecting our environmental concern to help preserve planet Earth and solve the pollution problem, KASIKORNBANKGROUP has set these ideas as the main theme for producing our “Green” calendar, shifting this year from the use of virgin natural resources to more environment-friendly materials, through the use of recycled paper. We have also trimmed the calendar pages and used soy ink in printing with a simpler, two-color printing process, which is a part of KGroup’s effort to help create a greener world. 

Customers

KBank strives for the support of sustainable growth for SMEs and recognizes the importance of upgrading the competitive potential of entrepreneurs. Small-to-medium enterprises with sound business practices, in particular, have thus been promoted to ensure their healthy growth and effective contribution to the country’s economic development.

To this end, entrepreneurs have been provided with business-related knowledge to give them a better understanding of how to effectively operate their businesses, tackling problems so as to improve their businesses.  This will eventually lead to more sustainable growth in their business operations.

            Training courses and seminars have thus been staged by KASIKORNBANK to provide the Bank’s customers and entrepreneurs business-related knowledge that can be applied effectively and in a timely manner. These programs, through which customers’ competitive potential is bolstered, help broaden their perspectives in doing business. The Bank acts as an intermediary to convey to the customers and entrepreneurs our business concepts, philosophy, operating practices and ideology that comply with the government’s policies and vision to promote SME businesses. In 2008, the Bank launched learning-themed programs and seminars including:

Project to Promote Sustainable Management for SMEs

The Bank, in cooperation with its business allies such as the Thailand Productivity Institute, Institute for Small and Medium Enterprises Development and Tax Research Center, organized management training for SME customers to provide them with relevant knowledge, in addition to complete financial products.   

The survey of entrepreneurs’ demands identified important factors for achieving sustainable growth for SMEs, such as up-to-date news and information, and business consultants. In 2008, KBank organized training entitled “Sustainable Management Enhancement Project for SME Entrepreneurs”, for SME entrepreneur classes 4-7, of which 2,000 participants completed the training program.

            The Bank also organized seminars for Large Corporate Business (CB) customers via many venues: K Connect Economic Outlook, which provided knowledge about the overall economy; K Connect Business Forum, providing additional economy-related hot issues; K Connect Industrial Focus, providing knowledge and exchanging points of view on the economy, focusing on each industry; Family Business, for exchanging views and providing knowledge on business succession; and Management Technique, designed especially for high-ranking executives.

Concern and Care Project from KASIKORNBANK

           As part of the Bank’s efforts to give something in return to customers, KBank provided 2,500,000 bottles of K Excellence drinking water, 500,000 refreshment napkins, 500,000 condoms and 3,000,000 pieces of candy to customers free-of-charge at more than 600 KBank branches. These complimentary gifts for clients have been offered continuously since last year.

KBank Distributes Handbooks on 'Alternatives for Depositors’

            KASIKORNBANK launched a depositor handbook on 'Alternatives for Depositors when the Deposit Guarantee is Gradually Reduced', the first of its kind, featuring the details of the Deposit Protection Agency Act, B.E. 2551, which came into effect on August 11, 2008, including knowledge about the gradually reduced deposit coverage limits, its impacts, and alternatives for depositors to manage their savings for attractive returns under an appropriate risk appetite. In addition to seminars organized for our customers via other media, 200,000 copies of the handbook were published for free distribution at all KBank branches.

KBank Olympic Experience Program 2008

           KBank held a KBank Olympic Experience Program for Multi-Corporate Business (MB), Large Corporate Business (CB) and Signature customers to gain firsthand experience of the 29th Olympic Games, the greatest sports competition of mankind, in Beijing. The program aimed to strengthen good relations with our valued customers and express our thanks to them.  Mr. Banthoon Lamsam, Chief Executive Officer, Dr. Prasarn Trairatvorakul, President, and KBank executives welcomed the customers and provided them with meticulous care during the entire event.  

Employees

KBank places considerable emphasis on personnel development. Thus, various learning courses have been organized for our employees to enhance their knowledge, ability and skills to be consistent with KGroup’s strategic and business plans, so as to achieve optimum customer satisfaction. Among the programs launched for KGroup employees in 2008 were:

• A program for career development was laid out so that all employees could apply it as a guideline for self-development and competency enhancement as per the expectations of each position. In addition, a career counseling program was developed in order to educate the supervisors (the first vice presidents and higher-ranking officials) regarding personnel development skills.
• A Management Development Program (MDP) was continuously offered. In 2008, the human resource management and leadership programs were improved to match the changing circumstances. In addition, many courses were continuously provided for the Bank’s executives.
• E-learning courses were developed to suit the current situation, and the Bank has adopted knowledge management for the purpose of exchanging, compiling and sharing knowledge within the organization.
• Recognizing good health for all employees, KBank organizes the annual medical checkups for them every year.

• The number of learning courses and employees attending in 2008 was as listed below:

Remarks:

       -     Each employee was allowed to attend several learning courses during the year.

       -     E-learning is a self-study program, so the number of classes cannot be counted.

Plans for CSR Activities in the Future

KBank continues to strive to be an organization that upholds the CSR Principles, takes part in social development, and operates under the Statement of Good Corporate Governance Principles. The Bank will continue to avoid supporting any activities or projects that are harmful to the environment, while supporting activities for further development of youth and promotion of education, so as to achieve our business growth along with the nation’s stable and sustainable development.