Rabobank in business

Guidelines of the Organisation for Economic Co-operation and Development (OECD) are recommendations for multinational companies that develop activities in the OECD member states. These guidelines relate to matters including (1) general policy lines, (2) transparency of information, (3) competition, (4) taxation, (5) social policy, (6) environmental protection and (7) National Contact Points (NCP).

General policy lines:  Multinational companies are expected to respect the laws and policies of the countries in which they operate. Companies must refrain from political activities and political manipulation. 

Transparency of information:  Multinational companies must seek to provide transparency regarding their policy and results, and must report their contributions in different regions.

Competition:  Competition must not be impeded through acquisitions, price discrimination and/or the exploitation of commercial rights.

Taxation:  Companies must cooperate in paying appropriate taxes in the countries in which they operate and refrain from exploiting unrealistic inter-company prices.

Social policy:  The right to join trade unions must be respected. There must be transparency regarding local policy and the consequences of that policy for employees. 

Environmental protection:  Companies must acknowledge their responsibility to protect the environment and to do their utmost to minimise risks. 

National Contact Points (NCP):  National Contact Points (NCP) are established in all participating countries for the purpose of informing and advising companies the application of guidelines, including OESE guidelines. In the Netherlands the NCP is located within the Ministry of Economic Affairs. 

For more information about OECD see: www.oecd.org

In 2002 Rabobank Group signed the Global Compact of the United Nations, an initiative of Kofi A. Annan, Secretary General of the United Nations, aimed at bringing about more just and socially-responsible globalisation. Annan has appealed to the CEOs of international companies to endorse the ten basic premises of the Global Compact relating to human rights, labour law and environmental protection and to put these principles into practice in their daily operations. The ten basic premises of the Global Compact are as follows:

Human Rights 
- Respecting and protecting international human rights. 
- Preventing individual business units from violating human rights. 

Labour Law
- Ensuring the freedom to unite and recognising the right to meet collectively. 
- Eradicating all forms of forced labour. 
- Abolishing child labour. 
- Banning discrimination in the workplace or in professional practice.    

Environment 
- Contributing to preventative approaches to environmental issues. 
- Undertaking initiatives that promote an awareness of responsibility for the environment. 
- Promoting new environmentally-friendly technological innovations.

Anti-corruption
-          Working against all forms of corruption, including extortion and bribery

In signing the Global Compact, Rabobank Group has agreed to further integrate these ten points into its policy and to report the progress of the integration process in their Annual Responsibility and Sustainability Report. 

For more information about the Global Compact see: www.unglobalcompact.org

In 2003, Rabobank International and nine other large international banks signed the Equator Principles, which were renewed in 2006. These are social and environmental guidelines for project-financing that exceeds $50 million: compliance makes the credit risks related to large financing projects more manageable. The Equator Principles are based on the guidelines of the World Bank and its subsidiary the International Finance Corporation (IFC). In signing this compact, Rabobank has evinced the importance it attaches to good entrepreneurship. 

To download the Equator Principles please see the download section on this page.

In 1997, Rabobank was a signatory to the Statement by Financial Institutions on the Environment and Sustainable Development - an initiative of the United Nations Environment Programme. 

Signatories to the UNEP Statement recognise that sustainable development depends upon positive a interaction between economic and social development and environmental protection, one that balances the interests of this and future generations. Furthermore, signatories acknowledge that sustainable development is the collective responsibility of the government, businesses, including banks, and individuals. Participating banks agree that identifying and quantifying environmental risks are critical components of risk analysis and risk management. Customers are expected to act in a responsible manner vis-à-vis the environment and to comply with applicable environmental legislation.

For further information on UNEP see: www.unep.org

In 1994 Rabobank signed the Business Charter for Sustainable Development of the International Chamber of Commerce (ICC), a charter aimed at improving the environmental conduct of companies worldwide.

The charter includes sixteen basic premises relating to environmental management and health and safety. The essence of all these premises is that environmental management must be viewed as an inextricable part of business operations. Product responsibility and duty of care form part of the guidelines of the charter. In signing the charter, companies commit to contributing to the sustainable development of society as well as to communicating about this commitment with stakeholders.

The International Labour Organisation formulated the 'Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy' which has been signed by the government as well as all employee and employer organisations in the Netherlands.

The Declaration of Principles is based on the Universal Declaration of Human Rights and concurring international treaties. The following issues are included in the declaration of intent:

• non-discrimination,  
• labour conditions (safety and health)  
• labour relations (the freedom to form labour unions and the right to organise and conduct collective 
  negotiations).

For further information on ILO see: www.ilo.org 

Rabobank is also committed to the Integrity Code of the Netherlands Bankers' Association. Elements of this code form an integral part of our internal Code of Conduct. Rabobank committed itself to the following rules of conduct and guidelines as outlined in the code:

- The Privacy Code of Conduct for Banks: protecting personal privacy regarding the registration of customer data.  
- General Declaration against Racial Discrimination: combating prejudices and all forms of discrimination.   
- The ‘Chinese Walls’ Code: promoting the separated flows of price-sensitive information.  
- Private Investments Transactions Scheme: combating abuse - and every appearance of abuse – of insider knowledge bank personnel can acquire when carrying out their duties.   
- Code of Conduct for Mortgage Finance: regulating the provision of information to consumers that accompanies the offer of mortgage finance. Rabobank Group also has its own Code of Conduct for Mortgage Finance, a code that has more far-reaching stipulations. 

Rabobank is a member of the Round Table for Sustainable Palm Oil (RSPO). We finance F&A sectors that use palm oil all over the world, and we finance the early stage of the palm oil supply chain (production, crushing) in South East Asia – mainly in Indonesia – and Curacao.

More information is available at:
the site of the Round Table for Sustainable Palm Oil (RSPO)

Our Code of Conduct lays out clear guidelines regarding employee conduct. Rabobank Group sets very high standards for employees in their dealings with clients, partners, co-workers and society in general. Our code is designed to ensure that employees conduct themselves in accordance with the company’s values: respect, integrity, professionalism and sustainability.

To download the Code of Conduct Rabobank Group please see the download section on this page.

The Rabobank Group's more general Code of Conduct broadly states that the Group respects human rights. In order to have a more practical guideline, a Rabobank Group Human Rights Statement was formulated in 2002. To bring this statement in line with current day-to-day activities, a more practical Position Paper Human Rights was recently developed.

To download the Human Rights Statement please see the download section on this page.

In 2000, Rabobank was the first bank to raise the issue of genetic modification in its code of conduct. We issued an updated statement in 2005 in response to the growth of relevant global legislation specifically focused on gene technology, and may do so again, as we expect gene technology to boom over the next few years, particularly in areas where it contributes to the resolution of the food supply and public health issues.

To download the Statement on Genetic Modification please see the download section on this page.

Rabobank has focussed attention on the method of financing and investing in the weapon industry and weapon trade for a number of years. We acknowledge the right of democratic countries to defend themselves. Our Weapon Industry Policy is consequently based on the principle of 'no, unless'. This principle is worded as follows: Rabobank should, based on moral convictions, refrain from facilitating the weapon industry, unless a company is involved that (primarily) supplies non-controversial or weapon-related products.

To download our statement on the weapon industry please see the download section on this page.

To assess sector-specific CSR issues by the Rabobank Group in general and by our account managers and credit lenders in particular, we have developed detailed policies for specific sectors and production chains. These detailed policies are an addition to the ten main issues for CSR assessment. Reasons are the scope and interest of the CSR issues involved, the size our credit portfolio in a certain sectors and the magnitude of the potential reputation damage and risks that can ensue from our involvement with clients that conduct undesirable activities.

To download our soy or seafood supply chain policy, please go to the download section on this page.

Rabobank International Corporate Clients compiled CSR issues lists for more than thirty sectors. These issues lists include examples of ‘unwanted’, ‘proscribed’ and ‘good’ practices that can be used as CSR review guideline by relationship managers and credit analysts. Clients and stakeholders, such as NGOs and industry associations, were consulted to help select the main issues and the kinds of practices deriving from them. For example, the ‘Seafood supply chain’ policy and issues list were commented by external parties such as the Marine Stewardship Council and Marine Harvest.

Rabobank International plays a leading role in the Food & Agribusiness arena, which includes financing palm oil plantations, mainly in Indonesia. In response to reports of the impairment of tropical rain forest and social unrest over the plantations, Rabobank has developed its own Code of Conduct regarding the financing of such activities. Our clients, the press, non-governmental organisations and the political world have all been informed of this code. Our clients in the palm oil sector are expected to conform to the code and must also issue periodic reports on the social and environmental effects of their plantations.

To download the Code of Conduct for the Palm Oil Industry please see the download section on this page.