a case study of zenith bank

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Case study: How Zenith Bank takes action on its PRB targets: climate action and food security

Founded in May 1990 and based in Lagos, Nigeria, Zenith Bank Plc, the largest bank in Nigeria in terms of tier-1 capital, operates 393 branches and business offices and ranks among the top financial institutions in Africa. Zenith Bank is a signatory of the Principles for Responsible Banking and has, accordingly, set and published two targets which address two different areas of most significant impact that Zenith Bank identified in its impact analysis.     Tweet This!

This case study is based on the 2023 Principles for Responsible Banking Reporting and Self-Assessment by Zenith Bank, prepared in relation to its implementation of the PRB, that can be found at this link . Through all case studies we aim to demonstrate what ESG/ sustainability reporting done responsibly means. Essentially, it means: a) identifying a company’s most important impacts on the environment, economy and society, and b) measuring, managing and changing.

Which Principles for Responsible Banking have been addressed?

The Principles for Responsible Banking (PRB) addressed in this case are:

• 2.2 Target Setting
• 2.3 Target implementation and monitoring
• 4.1 Stakeholder identification and consultation

Zenith Bank has set targets for climate action and food security. In order to show that it has implemented the actions it defined to meet the set targets, Zenith Bank took action on:

• SMART Target 1: Climate action
• SMART Target 2: Food security

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• Which are the PRB targets Zenith Bank has set and published;
• How Zenith Bank proceeded with stakeholder identification and consultation , and
• What actions were taken by Zenith Bank on its PRB targets

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Stakeholder identification and consultation

Please describe which stakeholders (or groups/ types of stakeholders) you have identified, consulted, engaged, collaborated or partnered with for the purpose of implementing the Principles and improving your bank’s impacts. This should include a high-level overview of how your bank has identified relevant stakeholders, what issues were addressed/results achieved and how they fed into the action planning process .

Zenith Bank’s stakeholders encompass groups or individuals with an interest in the Bank and affected by its activities, products, or services. They comprise investors, employees, customers, suppliers, communities, industry peers, local and national government agencies, media, non-governmental organizations (NGOs), and international institutions. Through its robust stakeholder engagement and management process, Zenith Bank considers all these stakeholder categories in its responsible business decisions.

Some concerns raised by Zenith Bank’s stakeholder groups include:

Employees: health and safety, compensation and benefits, training and development, work-life balance, and employee volunteering.

Investors: financial performance, return on investments, investor relations, sustainable finance, and communication.

Customers: awareness of information security, processing time for electronic transactions, handling of claims and disputes, transaction fees and charges, updates/offers of products and services, incentives, and access to cash.

Suppliers: policy reviews, payment cycle, adherence to signed service level agreements (SLAs), complaint resolution, consideration of environmental and social risks and adherence to COVID-19 protocols while maintaining excellent service delivery, awareness of information security and privacy, monitoring and evaluation.

Government: foreign exchange rate practices, regulatory compliance, banking reforms, effective risk management and prevention of systemic risks, lending to the real sector, especially small and medium-sized enterprises (SMEs), anti-corruption measures, money laundering, and financial inclusion.

NGOs: collaboration on Sustainable Development Goals (SDGs), communication and initiatives related to corporate social responsibility (CSR).

Media: products and services, effective feedback mechanisms, social media presence.

In its 2023 Principles for Responsible Banking Reporting and Self-Assessment Zenith Bank reports that it took the following actions on its PRB targets, climate action and food security:

• Zenith Bank has released its Climate-related Risk Management Policy, outlining the Bank’s framework for managing climate-related risks. This includes governance structure, investment management approach, risk management measures, and the corresponding required disclosures to be made available to clients and investors. Zenith Bank is currently developing a reporting template for the Bank’s Climate Risk Management, which will be monitored and reported to the Executive Committee and Board on a quarterly basis.
• The bank-led initiative undergoes renewal every 100 days (quarterly), with a fresh set of companies chosen for financing under the initiative. Monitoring of the Bank’s 100 for 100 initiative is conducted by the Agricultural Credit unit, in cooperation with the Treasury Operations Department, Treasury Department, and the Financial Control & Strategic Planning Department. Projects funded under the initiative undergo verification and monitoring throughout the loan period by the CBN and PFI. Reports on the process and execution of this initiative are forwarded to the Central Bank of Nigeria quarterly.

UN Principles for Responsible Banking: Accelerating a positive global transition for people and the planet

With over 300 signatory banks representing almost half of the global banking industry, the Principles for Responsible Banking are the world’s foremost sustainable banking framework. Through these Principles, the banking community takes action to align core strategies, decision-making, lending and investment with the UN Sustainable Development Goals and international agreements such as the Paris Climate Agreement.

FBRH Principles for Responsible Banking (PRB) Assurance :

First class PRB assurance services: The result of solid, hands-on ESG/ Sustainability experience

• FBRH is a GRI Certified Training Partner (Global), IEMA Training Centre and a member of CPD.
• FBRH builds trust. Over  200 reviews from top professionals  from around the world demonstrate our ability to build strong, trusting business relationships.
• FBRH possesses a unique skill set that combines ESG/sustainability certified training, experience in advisory services and report preparation, and ESG/sustainability report assurance.

The combination of all the above empowers FBRH to provide first class Principles for Responsible Banking (PRB) assurance services.

References:

This case study is based on published information by Zenith Bank, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original please revert to the following link:

https://www.zenithbank.com/media/3110/Zenith-PRB-Report-2023.pdf

Note to Zenith Bank: With each case study we send out an email requesting a comment on this case study. If you have not received such an email please contact us .

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An Investigation into the Impact of Leadership Styles on Employee Retention: Identifying which Leadership Style best encourages Employee Retention in the Nigerian Banking Sector: A Case study of Zenith Bank Plc., Nigeria

Adekanbi, Adedamola (2016) An Investigation into the Impact of Leadership Styles on Employee Retention: Identifying which Leadership Style best encourages Employee Retention in the Nigerian Banking Sector: A Case study of Zenith Bank Plc., Nigeria. Masters thesis, Dublin, National College of Ireland.

Employee retention is a major concern of the Nigerian banking sector today because of increased employee turnover. This can be said to be as a result of the series of banking reforms, mergers and acquisition of banks, loss of job commitment and low employee morale. The Nigerian banking sector is a strategic sector in the economy of the nation which drives the country’s economy; however, the challenges being faced in the banking sector will not only affect the banks but can have an adverse effect on the economy of Nigeria if employee retention strategies are not put in place. This study was therefore designed to investigate the impact of leadership style on employee retention in the Nigerian banking sector. More so, it was aimed at identifying the leadership style that best encourages employee retention in the Nigerian bank, with particular emphasis on the transformational and the transactional leadership styles. The primary data for this study was collected through questionnaires and analysed using the Statistical Package for Social sciences (SPSS). Data was collected through both open ended and close ended questions with a five point Likert scale. The study used the purposive, snowball and convenience sampling technique in order to get response from the respondents.

The study revealed that leadership style has a moderate significance on employee retention and that the transactional leadership style best encourages employee retention in the Nigerian Banking sector. The study recommends that leaders and managers should properly implement the exchange process of the transactional leadership style to mitigate employee turnover in the Nigerian banking sector

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Employees Job Performance and Pursuit of Corporate Social Responsibility in the Banking Industry a Case Study of Zenith Bank Plc & First Bank Plc Jalingo

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The Impact of Income Diversification on Bank Performance: A Case Study of Zenith Bank, Cal Bank and Unibank

• Jacob Amediku
• Published 8 February 2012
• Business, Economics

7 Citations

Factors influencing non-interest income in commercial banks in kenya.

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DETERMINANTS OF FINANCIAL PERFORMANCE OF COMMERCIAL BANKS LISTED AT NSE IN KENYA

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Causes of Cyber Fraud in Commercial Banks in Nigeria: A Case Study of Zenith Banks in Abuja

• Conference paper
• First Online: 11 March 2024
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• Ekong Eyo Unwana 12 &
• Rajesh Prasad 13  

Part of the book series: Lecture Notes in Networks and Systems ((LNNS,volume 896))

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Cyber fraud has arisen as a critical danger to the financial business, and monetary establishments like Zenith Bank are not insusceptible. This theoretical gives an outline of the causes and kinds of digital misrepresentation explicitly applicable to Zenith Bank. Understanding these variables is urgent for the bank to carry out powerful safety efforts and safeguard its clients’ monetary resources. The reasons for digital extortion in Zenith Bank originate from different sources. Mechanical progressions have presented weaknesses, making obsolete frameworks and unpatched programming practical objectives for cybercriminals. Human weaknesses, including guilelessness and powerlessness to social designing strategies, likewise add to the outcome of false exercises. Furthermore, insider dangers represent a critical gamble, as believed workers might abuse their entrance honors or compromise delicate data. The globalization and interconnectivity of the financial business further worsen the difficulties in fighting digital misrepresentation, as cross-line exchanges and jurisdictional intricacies make requirement troublesome. With respect to sorts of digital misrepresentation saw in Zenith Bank, a few normal examples arise. Phishing and ridiculing procedures exploit clients’ trust by fooling them into revealing individual data or login qualifications through false messages or sites. Fraud, a predominant cybercrime, includes the obtaining and abuse of people's very own data for fake purposes. Malware and ransomware assaults present critical dangers, with vindictive programming compromising PC frameworks and coercing casualties for monetary benefit. Business Email Split the difference (BEC) tricks exploit the power of high-positioning chiefs or confided in accomplices to delude representatives into starting unapproved exchanges. Card misrepresentation, venture tricks, and monetary plans focusing on clients’ monetary resources are additionally predominant. To actually battle digital extortion, Zenith Bank ought to zero in on tending to the causes and executing proactive safety efforts. This remembers effective money management for vigorous mechanical framework, preparing workers to perceive and answer digital dangers, carrying out multifaceted verification, and ceaselessly checking and refreshing security conventions. By remaining cautious and proactive, Zenith Bank can safeguard its clients from the negative effects of digital extortion and keep a protected financial climate.

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Unwana, E.E., Prasad, R. (2024). Causes of Cyber Fraud in Commercial Banks in Nigeria: A Case Study of Zenith Banks in Abuja. In: Roy, N.R., Tanwar, S., Batra, U. (eds) Cyber Security and Digital Forensics. REDCYSEC 2023. Lecture Notes in Networks and Systems, vol 896. Springer, Singapore. https://doi.org/10.1007/978-981-99-9811-1_28

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The Study of Credit Risk in the Banking Sector and its Effect on Financial Performance Case Study of the Zenith Bank Sierra Leone

19 Pages Posted: 23 Apr 2024

Dr. Abu Kai Kamara

University of Sierra Leone - Fourah Bay College

Date Written: March 31, 2024

Credit risk refers to the probability of financial loss resulting from a borrower’s failure to repay a loan. Essentially, it encompasses the risk that a lender may not receive the owed principal and interest, leading to disrupted cash flows and increased collection costs. Lenders can mitigate credit risk by analyzing factors related to a borrower’s creditworthiness, such as their current debt load and income. In the last decade or so many banks have started to make use of models to assess the risks for the credit that they lend. The credit risk models are very complex and include algorithm-based methods of assessing credit risk. Such a model aims to help banks quantify, aggregate, and manage credit risk. Despite the method, the focus of credit risk assessment stays on credit quality and risk exposure. Strategies to reduce losses and manage risks are pertinent in credit risk management, however, banks have to organize and manage the lending function professionally and proactively and use advanced techniques to measure and manage risks. Credit risk management has become a hot topic due to the ongoing global economic crises, the rapid digital transformation, the recent technological innovations, and the growing use of artificial intelligence in banking. Regulators expect banks to have a clear and comprehensive understanding of their customers and their credit risk, and to be transparent and capable in this area. As the Basel regulations change, banks will face more regulatory pressure. To meet the changing regulatory demands and to manage risk better, many banks are changing their credit risk practices. However, banks that see this as only a compliance issue are missing the point. The research findings indicate that the bank’s credit management practices have strongly influenced its profitability. In brief, maneuvering through the complex risk terrain poses a significant hurdle for financial organizations. This requires ongoing adjustments and strategic choices to ensure both stability and profitability. Consequently, persistent academic research is essential to guide management, governments, and regulators.

Keywords: Profit After Tax(PAT), Non-Performing Loans (NPLs), Capital Adequacy Ratio (CAR), Basel Committee on Banking Supervision (BCBS)

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Abu Kai Kamara Department of Accounting and Finance, Fourah Bay College, Sierra Leone School of Post Graduate Studies, University of Sierra Leone, Sierra Leone

Dr. Abu Kai Kamara is a scholar and researcher affiliated with the University of Sierra Leone – Fourah Bay College. His work primarily focuses on topics related to accounting, finance, and economic development. He is the Head of the Department of Accounting and Finance at Fourah Bay College and the Acting Director of Finance at the University of Sierra Leone. Dr. Abu Kai Kamara holds the following academic qualifications: PhD Accounting and Finance, Postgraduate Certificate in Business Research, Master of Philosophy in Accounting, Master of Science in Strategic Planning, Fellow Chartered Certified Accountant (FCCA), and Bachelor of Science in Economic and Social Studies with Honours in Accounting. Dr. Abu Kai Kamara is associated with the following academic networks:

ORCID: https://orcid.org/0009-0003-0403-5243

ResearchGate: https://www.researchgate.net/lab/Abu-Kai-Kamara-Lab

SSRN https://papers.ssrn.com/sol3/cf_dev/AbsByAuth.cfm?per_id=3607995

Academia.edu: https://independent.academia.edu/AbuKamara27

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THE STUDY OF CREDIT RISK IN THE BANKING SECTOR AND ITS EFFECT ON FINANCIAL PERFORMANCE CASE STUDY OF THE ZENITH BANK SIERRA LEONE

Credit risk refers to the probability of financial loss resulting from a borrower’s failure to repay a loan. Essentially, it encompasses the risk that a lender may not receive the owed principal and interest, leading to disrupted cash flows and increased collection costs. Lenders can mitigate credit risk by analyzing factors related to a borrower’s creditworthiness, such as their current debt load and income. In the last decade, many banks have started to make use of models to assess the risks of lending credit. The credit risk models are very complex and include algorithm-based methods of assessing credit risk. Such a model aims to help banks quantify, aggregate, and manage credit risk. Despite the method, the focus of credit risk assessment stays on credit quality and risk exposure. Strategies to reduce losses and manage risks are pertinent in credit risk management. However, banks have to organize and manage the lending function professionally and proactively and use advanced techniques to measure and manage risks. Credit risk management has become a hot topic due to the ongoing global economic crises, the rapid digital transformation, the recent technological innovations, and the growing use of artificial intelligence in banking. Regulators expect banks to have a clear and comprehensive understanding of their customers and their credit risk and to be transparent and capable in this area. As the Basel regulations change, banks will face more regulatory pressure. To meet the changing regulatory demands and to manage risk better, many banks are changing their credit risk practices. However, banks that see this as only a compliance issue are missing the point. The research findings indicate that the bank’s credit management practices have strongly influenced its profitability. In brief, manoeuvring through the complex risk terrain poses a significant hurdle for financial organizations. This requires ongoing adjustments and strategic choices to ensure both stability and profitability. Consequently, persistent academic research is essential to guide management, governments, and regulators.

JEL : G21, G32, G33, C53, E58, D81

Article visualizations:

Afolabi, M. A., Adeniyi, S. S. O., Kamar, A., Adeyemi, K., & Susan, O. E. (2021). Credit Risk and Bank Performance in Nigeria: A Panel Analysis Approach. International Journal of Multidisciplinary Sciences and Advanced Technology, 2(1), pp44–531

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Employees Job Performance and Pursuit of Corporate Social Responsibility in the Banking Industry a Case Study of Zenith Bank Plc & First Bank Plc Jalingo

The study examine the correlation between employees job performance and corporate social responsibility, through the use of qualitative and quantitative research design paradigm, to do that effective there research objectives and two hypotheses were design; (1)To identify the contribution of employees job performance to corporate social responsibility (ii)To determine ways how corporate social responsibility can be improve in organization (iii)To analyzes the organizational excellence and the corporate social responsibility under the period under review. H1: there is a positive relationship between employee’s job performance and the corporation social responsibility H0: there is no positive relationship between employee’s job performance and the corporation social responsibility, in order to find the correlation between the two variables. To test the hypotheses, correlation was conducted between the independent and dependent variable which the degree of correlation to 0.625 showing high level of correlation hence the null hypothesis is rejected and the alternative hypothesis is accepted. And the results from the content analysis of qualitative also accept the alternative hypothesis and reject the null. Cronbach alpha statistic was also conducted for test of reliability which shown 0.951 which shows that the instrument used is highly reliable. Hence the study shows that there is a positive and significant relationship between the two important variable of the study employees job performance and corporate social responsibility.

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Asian Online Journal Publishing Group

IJMSBR Open Access Journal

The study is to examine the link between employees job performance and corporate social responsibility in the commercial banks in Nigeria, in order to achieve that two objectives were formulated (i)To Investigate the overall role and contribution of internal CSR and employee job performance. (ii)To investigate the level of internal CSR adoption in Nigeria and two research questions was developed (1)What is the level of internal CSR adoption in Nigeria commercial banks? (2) What is role and contribution of internal CSR and employee job performance in Nigeria? .The study employed both quantitative and qualitative methods to obtain data through a self-administered questionnaire survey, a number of semi-structured in-depth expert interviews and content analysis. The case study organization was selected because the majority of studies conducted in Nigeria on similar or related topics were conducted on business or public organizations. The outcome of the quantitative and qualitative analysis reveals that there is a link between employees job performance and corporate social responsibility. The findings of this study have practical implications for organizational leaders, managers and employees, and their organizations, particularly banks in Nigeria, besides offering scope for further research in the area of organizational development

David Chinedu

Maniagi Musiega

Corporate Social Responsibility is how business organization activities influences the stakeholder interest.CSR plays a very important role in organizational performance. Most organizations have embraced corporate social responsibility without substantial increase in organization performance hence the research sought to find out the effect of CSR on organization performance. This research limited itself to selected commercial banks in Kakamega that’s equity and cooperative bank. A population of over 10,000 customers, the researcher picked on corporate customers of around 70 customers; a sample size of 50 was used to carry out the research. The questionnaires which were administered randomly for bank management, bank staff and customer among other stake holders in the banking industry. The internal consistency for performance independent variable was achieved through the use of reliability Cronbach’s Alpha coefficient which had an alpha of 0.915 implying that the instruments used were reliable for the study. Based on the results of this study, it was concluded that philanthropic responsibility of a bank has an impact on bank performance. The positive significant correlation coefficient 0.490, P<0.05 shows that any increase in philanthropic responsibility will increase the performance of the bank.The intervening variables government policy and priority both had significant impact on organisation performance as there was significant increase in R squared for both models though government policy had got the highest increase of the two variables..The study recommended that for banks to retain its customers, they should focus on more on their ethics of how they treat their employees, customers and other stakeholder Bank management should prioritise CSR activities in their institution and ensure enough resources and personnel are set aside to fund the CSR activities. They can co-operate CSR as of its core functions thereby implementing it seriously. Bank management should implement Government policy on CSR because it has a positive impact on customer retention and performance as some of the activities are appealing to customer. Government agencies on environment should create awareness to citizen so as to make bank customer identify those banks that adhere to environmental regulation and laws as many customer are unaware of the importance of green and clean environment

Economics World ISSN 2328-7144

As the development of economy, the corporate social responsibility (CSR) received more and more recognition from academic and business. The traditional economy with only goal of pursuing the wealth is changing rapidly. Chinese corporations realize that it is important and urgent to value the social responsibility, search for effective means to balance the relationship between CSR and COP (corporate operating performance). Meanwhile, it is helpful and meaningful for the society to build up a healthy and appropriate operating value for corporations. However, there is always a debate of how many social responsibilities a corporation should take in order to satisfy the corporate development and the relationship between CSR and profit, and previous researches on corporate social responsibility mainly focused on all stakeholders of a company. As more and more corporations are aware of the importance of their employee, this study specifically selects employee, one of the most important stakeholders, as the subject investigated. Meanwhile, it chooses New Era Health Industry (Group) Co., Ltd as the target enterprise, which is the only state-owned key enterprises in health industry and the leading corporation in directselling industry in mainland China. In order to research the relationship between corporate operating performance and the satisfaction of employees' material needs and psychological needs, this study plans to complete it by combining the theoretical and empirical study, qualitative analysis and quantitative analysis research methods. Based on a questionnaire of 200 employees in New Era, this study analyzes the situation of CSR to employees for New Era and comes to the conclusion of the relationship between the CSR and COP. According to the research result, this study may give some suggestions for Chinese corporations to fulfill their social responsibility system and to improve the situation of the lack of CSR to employees.

Annals of Contemporary Developments in Management & HR (ACDMHR)

Research on Corporate Social Responsibility (CSR) is not new but relatively very few researches have been focused on the influence of CSR on the organizational performance (OP), employee commitment (EC) and on the mediating role of EC with the CSR and OP. The current study was conducted on the sample size of 806 employees working in two reputable banks of Pakistan. The current study uses the PLS-SEM 3.0 version to test the proposed hypotheses. The results of current research study revealed the significantly positive link between the CSR with the performance of the organization, CSR with EC and the study also found the positive results of mediating role of EC between the CSR and OP. The study also suggests some significant future implication regarding the importance of CSR actions and its uses that can increase the commitment level of the employees, they feel proud to become part of that organizational who is socially responsible and the performance of the organization will also be enhanced.

adetoun R balogun

Some organizations have understood and embraced the concept of corporate social responsibility as a means of improving their performance. The purpose of the study is to determine the influence of corporate social responsibility activities on organizational performance. A survey research design was used in the study. The target population for this study is the skilled labour of Seven-Up Bottling Company Plc, Ibadan, and Nigeria Brewery Plc, Ibadan. 262 was used as the sample size for the study which was calculated by Taro Yamane Formula. The questionnaires were the main instrument of data collection. Descriptive statistics analysis was used for demographic data of the respondents while inferential statistics through the use of multiple regression were used to test the hypotheses. The findings revealed that corporate social responsibility significantly influences organizational performance. Furthermore, philanthropic, ethical, economic, legal activities significantly predict organizational performance among the manufacturing firms in Oyo State, Nigeria. It was concluded that four dimensions of corporate social responsibility activities which include; philanthropic activities, ethical activities, economic activities, and legal activities positively influenced organizational performance. The study recommends that senior management should always ensure continuous and intensive research and development to ensure maximum exploitation of activities used for managing and controlling corporate social responsibility to enhance organization performance.

Global Journal of Social Science,

Idowu Ologeh

Corporate Social Responsibility (CSR) integrates major areas of an organisation, including community, environment, ethics, workforce, human rights, responsibility in the market, vision and values and workplace. Much work has been done on the organization giving back to the environment and community; however other areas are rarely covered. The workforce is one of the major stakeholders of an organisation; it is an internal part of it and can either promote or tarnish the CSR image of the organization. Staff are part of an organizations’ CSR success and this paper assesses the impact of Airtel Nigeria’s CSR on staff’ effectiveness and satisfaction at work. Structured questionnaires are administered to forty randomly selected staffs and two managers are interviewed from the two founding branches of the organization. The study shows that majority (57.5%) of the respondents do not understand the meaning of CSR; they see it as the organization being charitable and thus find it difficult to accept it affects their effectiveness and performance at work. However, Airtel Nigeria did not relent in their CSR duties to staff and community. Thus the organization should provide effective CSR training and communication to enlighten their workforce on their CSR activities for staff.

IBT journal of business studies

Shuvabrata Saha

This research studies employees&#39; perceptions and expectations toward their organization&#39;s Corporate Social Performance. Researcher develops a framework and methodology for analyzing and evaluating the perception of bank employees. This framework explains how employees&#39; perceptions of CSR trigger attitudes and behavior in the workplace which affect organizational, social and environmental performance. It also examines the social issues in the lens of employee perceptions by the descriptive statistical tools. To know the employee perception regarding corporate social performance ten sample banks employees have been chosen. In this study, we found that employee perception is high-quality regarding social activities of the sample banks. Specifically, the study reveals that by pursuing a series of variables will help in assessing employees&#39; reactions to and perceptions in the context of CSR principles. It also indicates that bank industry should pay more attention to its ...

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