TD Bank Corporate Social Responsibility Analysis 2019

Toronto-Dominion Bank Corporate Social Responsibility Analysis 2019. (TD CSR review).

ADM1101-1301-Corporate-Social-Responsibility-TD.pdf

Plain text of report to help the search engines

TD BANK GROUP:

CORPORATE SOCIAL RESPONSIBILITY

CSR GROUP 16 AMINI, FRANK: IIIIIIIIIII CONTE, EMILY: IIIIIIIIIII WISNIEWSKI, BEN: IIIIIIIIIII YAO, NORRIS: IIIIIIIIIII

[

DRAFT]

ADM 1101/1301 M

APRIL 2, 2019

PROFESSOR JOHN PALMER

TD BANK GROUP

CORPORATE SOCIAL RESPONSIBILITY

TABLE OF CONTENTS

I. EXECUTIVE SUMMARY .......................................................................................................... 1

II. OVERVIEW .............................................................................................................................. 2

Industry Analysis......................................................................................................................... 2

Company Overview..................................................................................................................... 4

III. STAKEHOLDER MANAGEMENT .............................................................................................. 7

Customers .................................................................................................................................... 8

Colleagues ................................................................................................................................... 9

Community .................................................................................................................................. 9

Environment ................................................................................................................................ 9

Other Stakeholders .................................................................................................................... 10

Stakeholder Identification and Interaction ................................................................................ 10

IV. CORPORATE SOCIAL RESPONSIBILITY ............................................................................... 11

CSR Pillars and Environment ................................................................................................... 11

Financial Education ................................................................................................................... 12

Civil Society .............................................................................................................................. 13

LGBTQ+ Involvement .............................................................................................................. 13

V. EVALUATION ........................................................................................................................ 14

Global Business Challenges ...................................................................................................... 14

Sustainability ............................................................................................................................. 15

Critically Assessing Stakeholder Management ......................................................................... 17

VI. CONCLUSION ......................................................................................................................... 18

VII. REFERENCES ......................................................................................................................... 19

VIII. PERSONAL ETHICS STATEMENT .......................................................................................... 23

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I. EXECUTIVE SUMMARY

The TD Bank Group (TD) is representative of the Toronto-Dominion Bank and all of its subsidiaries and was ranked 17th among the Corporate Knights’ 50 Best Corporate Citizens of Canada in 2017 (Corporate Knights, 2017). TD’s main operating principles include: customer service; employee well-being; responsible risk management; brand development; and increasing shareholder value, among others (“Corporate Responsibility Report”, 2009).

As a member of the banking industry, TD must contend with increasing customer expectations, affected primarily by technological development. In their 2017 Corporate Responsibility Report, TD identifies four main stakeholders: customers, colleagues (i.e., employees), community, and environment. Although not further elaborated within the report, shareholders and investors, government, suppliers, industry associations, and non-governmental organizations (NGOs) are also identified as TD’s key stakeholders (“Corporate Responsibility Report”, 2017).

The corporation’s main socially responsible initiatives focus on: improving the environment; increasing financial literacy; supporting inclusion and diversity, particularly with regard to gender and sexual diversity; and donating to various civil society actors. Although there are examples of ways in which TD fails to properly manage their stakeholders or may be investing for profit-driven reasons, TD is nonetheless deserving of their position within the Corporate Knights’ top 50 best corporate citizens in Canada.

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II. OVERVIEW

Industry Analysis

These days the banking industry is rapidly changing to better fit modern day society’s current needs, and some of these changes are causing difficulties for traditional banks. People today have become greatly accustomed to a variety of technologies being at our disposal at all times. Everywhere you go people are on their smartphones, tablets, laptops, or other mobile devices, with any number of possibilities at their fingertips. One of those possibilities being banking.

This leads us to one of the basic issues facing the banking industry today. Simple as it may sound or apparent as it may be in any industry; consumer expectations are drastically altering banking today (Schubert, 2015). The expectation of real time transactions from everyday devices has shifted banking into the realm of majority digital customers. Things like e-transfer, mobile apps, and the general change to online has caused the basic foundations of the banking industry to change. Concepts that were relatively new to banking have become the central focus of the industry. Concepts like cyber security and data protection.

With these changes comes higher expectations. Not only do people expect new technology to be fully integrated into the services of firms in the banking industry, but they also require further personalization to their banking experience. Statistics show that the newer generations of people are less likely than their parents to remain loyal to a particular bank. Which means banks are going to have to make changes to accommodate the consumers’ new and growing expectations (TransferWise, 2016). Now customer loyalty is harder to maintain. The services and interface provided for services have to be at a much higher standard to keep people’s attention, and to provide those services there is far greater risk than there used to be. With these services comes risk due to the mass of information and essentially financial access

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online. The financial information of each customer becomes something the company is directly responsible for protecting, and if they fail to protect that information a person’s finances could be compromised. Hackers and scammers become the new bank robbers. Companies in the industry must be alert, maintain and update their means of safeguarding the consumers’ money and privacy, and they must do it constantly and quickly (TransferWise, 2016).

When a bank fails to do this it becomes a social issue among the consumers. People will no longer be able to participate in a vital industry if their personal information both financial and social is not protected. If a bank has a case where a customer’s information is compromised that bank’s status is damaged. The industry as a whole becomes involved in its own complex social responsibility issue. Putting all the more pressure on firms in the industry to maintain their performance in these elements.

Corporate social responsibility becomes one of the key components in the sustainability of companies in the banking industry. Unlike industries that cause pollution emissions or use up natural resources, a bank’s CSR is more closely related to the well-being of the people and the economy that it is within. Unethical practices within a bank lead to economic problems and loss to the people (Majmudar, 2015).

In terms of companies performance in Canada it has varied a little in past years but generally the top five banks take CSR very seriously and attempt to be known as companies with a strong commitment to benefiting their social environment as well as natural environment. In 2009 an article by (Vasil, 2009) of NOW Communications Inc. Stated that Citizens Bank was performing at the top of the environmental and CSR awareness rankings, while CIBC, Scotiabank, and BMO were not doing so well. As we move on to 2011 a list by (Miratel Solutions, 2011) stated that BMO, RBC, and TD bank all made the list of 50 best corporate

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citizens in Canada for 2011. These are some large changes in opinion in only a couple of years. Overall in summary top CSR performers in the industry have a tendency to change as organizations mature and develop over time.

Company Overview

Toronto-Dominion Bank was chartered on February 1, 1955. Its beginning was the merger of two banks, the Bank of Toronto which was founded in 1855, and the Dominion Bank which was established in 1869 (“Historical Facts”, n.d.). Today the TD Bank Group is representative of the Toronto-Dominion Bank and all of its subsidiaries. TD stands as a banking group with headquarters in Toronto and upwards of 85,000 employees around the world. On January 31, 2019 TD had CDN$1.3 trillion in assets. TD Bank is one of the five major Canadian banks with over 1250 locations, 13 million customers worldwide, and $11.26 billion in net income for 2018 (“Bank Locations”, 2018; Market Watch, 2019).

TD Bank Group’s primary products and services include business banking accounts, business investments, financing, cash management information, consolidation and reporting, cash management payables, cash management receivables, U.S. banking services for Canadians, Global services, business credit life insurance, and wealth advisory services (“Products and Services”, 2019). The wide variety of services mentioned essentially provide consumers with different methods of saving and investing their money, as well as participating in financing and wealth management planning. Other services are there for the purpose of managing client transactions of day to day affairs.

As for the organizational structure of the Toronto-Dominion Bank they incorporate a CEO, as well as a board of 9 directors and 1 chairman of the board. Below them they have 8 executive vice presidents that also hold the relative titles of CFO, chief auditor, chief information officer, chief marketing officer, chief risk officer, head of regulatory relationships and

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government affairs, head of human resources, and head of shared services. TD’s structure then includes general legal counsel and the heads of regional commercial banks. TD also has a head of consumer distribution and a head of consumer product and marketing (“The Official Board”, 2018).

TD’s model of their Corporate Governance Structure illustrates their process in the development of its organizations foundation. Shareholders elect the board of directors and appoint a shareholders’ auditor. The board of directors appoint an audit committee, a risk committee, a corporate governance committee, a human resources committee, and the management. Finally the shareholders’ auditor reports to the audit committee (“Corporate Governance Structure”, 2019).

One of the issues with the way this structure is designed is the lack of requirement for the incorporation of corporate social responsibility. The shareholders’ are the foundation for the process in which the company moves forward. This can lead to a direction based on greed where the sole focus of the company is high profits and not necessarily the betterment of civil society or the maintaining of strong ethical and moral practices.

With that in mind it’s a good idea to take a look at TD’s core values as a company. TD’s mission statement claims their goal is to “be the Best run, Customer – Focused, Integrated Financial Institution, with a Unique and Inclusive Employee Culture” (MissionStatements.com., n.d.). TD’s “guiding principles” can be found on one of their websites. They state seven principles that “represent their most important values”. These principles are; to deliver legendary customer service, to make their banks an extraordinary place to work, to operate with excellence, to understand the business they do, to only take risks they understand and can manage, to enhance their brand, and to increase shareholder value (“Corporate Responsibility Report”,

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2009). Whether or not they achieve these principles is not a clear cut decision. Some may consider TD to do fairly well in meeting these goals, while others may disagree as can be viewed by the many differentiating opinions across an array of reviews online.

What you could call TD’s purpose statements are elements of their framework that they display on their website. TD states they wish to deliver consistent earnings growth, underpinned by a strong risk culture. Centre everything that they do on their vision, purpose, and shared commitments. As well as shape the future of banking in the digital age (“Strategy and Framework”, 2019). These statements are somewhat vague and do not provide a lot of detail as to how TD wishes to accomplish these things. Also they do not specify what their vision or relative purpose is. For these reasons it could be argued that TD does not have very strong purpose or mission statements.

TD’s code of conduct and ethics state basically that in order to maintain proper and ethical performance as well as the confidence of the public, they “are expected to maintain high standards of honesty, integrity, confidentiality, impartiality, and conduct, and to avoid misconduct and conflicts of interest and the appearance of conflict of interest” (“Code of Conduct and Ethics”, 2011). The wording of this ethics statement is rather suspicious. TD states that they “are expected to” do these things. Not that they intend to completely support the practice of strong ethical and moral standards. In 2017 three TD Bank employees came forward stating that they were placed under “incredible” pressure to meet sales goals, and that this pressure from their superiors forced them to “put their ethics aside” and “not do what was best for the customer” (The Star, 2017). According to that article “hundreds of employees” of all major banks came forward following news of the story. All claiming similar allegations. A story like this supports the conclusion that maybe banks aren’t as ethical as they want people to think

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they are. Since then TD in particular has mostly denied these allegations against their company, but they have continuously been updating their code of ethics and their approach to ethics in general. As can be demonstrated in TD’s twenty-five page document about ethics from November of 2018.

Also in 2018 TD Bank came out with what they call “the ready commitment”. Where it is stated that a new goal for TD is to help create conditions for everyone to succeed in the changing world of today. TD’s decided to aim to accumulate C$1 billion by 2030 to go towards community giving in a number of areas that support change (“The Ready Commitment”, 2019). In terms of CSR and ethical practice this is definitely a step in a good direction. Hopefully TD Bank Group will impress us in the future.

III. STAKEHOLDER MANAGEMENT

A stakeholder can be defined as “anyone or any group with a perceived stake in an organization’s activities” (Delcorde, 2013, p.121). This concept can be extended to include non-human or inanimate objects, such as animals and the environment. Regardless of what form a business takes, it is imperative that they: (1) identify their stakeholders; (2) evaluate the importance of their stakeholders, the most important of which are referred to as “key” stakeholders; and (3) determine to what extent the business should invest in managing their key stakeholders (Delcorde, 2013, p.122).

In his book, Canadian Business and Society, David Delcorde identifies several realities that businesses must face when managing their stakeholders. For instance, stakeholders do not always understand their stakes. Furthermore, stakeholders and their “perceived stakes” are not static (Delcorde, 2013, p. 121). Though this may complicate the task of stakeholder management, it is often more cost effective than not managing them.

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TD identifies four key stakeholders: (1) customers; (2) colleagues (i.e., employees); (3) community; and (4) the environment. The ways in which TD manages each of these stakeholders is summarized below.

Customers

TD aims to deliver “legendary customer experiences and trusted advice” (“Customer Experience”, n.d.). In order to accomplish this, they identify four areas of focus, the first of which is customer experience. In order to enhance their customers’ experiences, TD upgraded the digital tools available in their branches and launched the #TDThanksYou customer appreciation campaign (“Customer Experience”, n.d.). TD’s second customer-centred focus is financial education; to this end, TD launched various financial literacy tools, including savings calculators and FinanciallyFit, a website that provides information for families to teach and discuss money management (“Financial Education”, n.d.). Finally, TD aims to increase access to banking and to serve diverse needs, of which they identify: people with disabilities; minorities; Lesbian, Gay, Bisexual, Transsexual/ Transgender, Queer, etc. customers (LGBTQ+); Aboriginal peoples; people who speak new languages; and women in leadership. Examples of TD’s efforts to serve diverse needs includes: the Minority Leadership Committee, which recruits staff from visible minority groups and develops appropriate training programs (“Serving Diverse Needs”, n.d.); TD’s support of 83 pride festivals and over 160 LGBTQ+ organizations in 2018; the Supplier Diversity Program, which includes an Aboriginal-owned business focus; providing language translations for over 200 languages, including Aboriginal languages, for telephone services; and TD’s Women in Leadership network, which is comprised of over 5,000 members across Canada and the United States.

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Colleagues

TD states that desires to be a “best employer,” by engaging their employees so that they “feel inspired and supported” (“Colleagues”, n.d.). According to TD’s 2017 Corporate Responsibility Report (CR Report), key topics in managing their employees in 2017 included, among other things: supporting career development; improving diversity and inclusion in the workplace; and increasing the emphasis on employee wellness, particularly through the support of creative and flexible work schedules (“Corporate Responsibility Report”, 2017, pg. 8). According to their website, 85% of employees say they are proud to work for TD; and 39.8% of leadership positions in Canada are held by women and 14.5% are held by visible minorities (“Corporate Responsibility Report”, 2017, pg. 29).

Community

TD claims that they are committed to “building stronger communities” where they operate by “contributing to their social and economic development in long-lasting, sustainable ways” (“Community”, n.d.). TD’s 2017 CR Report stated that its key initiatives related to the community included: financial education; LGBTQ+ rights; the development of Indigenous communities; and increasing opportunities for young people (“Corporate Responsibility Report”, 2017, pg. 8). In effort of managing this stakeholder, TD donated $107 million to “strengthen communities where we operate” (“Community”, n.d.) and has planted over 346,000 trees since 2010 through their TD Tree Days program.

Environment

Finally, with regard to the environment, TD believes that “a healthy economy depends upon a healthy environment” (“Environment”, n.d.) TD’s support for the environment is can be seen through various initiatives and programs. For instance, the TD Friends of the Environment Foundation (TD FEF) provided $9.3 million to community environmental projects and the TD

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Forests program, in collaboration with the Nature Conservancies of Canada and the U.S., protected over 60,000 acres of forest habitat in North America. TD’s operations are also carbon-neutral, which embodies their effort to become “as green as our logo” (“Environment”, n.d.).

Other Stakeholders

In its CR Report, TD referenced additional stakeholders that are not identified on their website. Among others, these stakeholders include: shareholders and investors; government; suppliers; industry associations; and non-government organizations (NGOs). Key topics for managing shareholders and investors in 2017 included the transition into a low-carbon economy and pipeline expansion projects. In considering industry associations, TD worked to better meet customer needs. Finally, in managing its relationship with NGOs, key topics in 2017 included: fighting climate change; stimulating a low-carbon economy; and sustainable investing (“Corporate Responsibility Report”, 2017, pg. 8).

With regard to the government, TD focused on financial literacy. TD and five of its beneficiaries are registered with the Lobbying Commission of Canada (Office of the Commissioner of Lobbying of Canada, 2019), and they are very active in their communication with elected officials. For instance, more than thirty-three meetings were held with government officials over the last 12 months, which is comparable to the meetings held by the Royal Bank of Canada (RBC), the Bank of Nova Scotia and the Bank of Montreal.

Stakeholder Identification and Interaction

When taken as a whole, it is understandable why the above-mentioned stakeholders are identified by TD as important. For instance, TD relies upon its customers to stay in business. In order to meet the demands of their customers, TD must hire and retain qualified employees. In order to further satisfy existing customers and to potentially gain new customers, it is in TD’s best interest to contribute to the communities in which it operates. Finally, investing in

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environmental sustainability, both in its operations and its investments, allows TD to cut costs and fulfil its customers desire to support environmentally-friendly business.

However, with regard to their relative importance, this may present a different picture. The order in which these stakeholders have been presented reflects TD’s annual CR Report and their website. The stakeholders captured in the “other” section were a mere footnote of the report and were not readily listed on their website. When considering these additional stakeholders, it is conceivable that TD’s shareholders may rank higher on their stakeholder management index than the environment, for example. As previously mentioned, increasing shareholder value and responsible accruement of risk are two of TD’s seven main operating principles (“Corporate Responsibility Report”, 2009). When added to the principle of brand development, some of TD’s engagement with the environment and the community may be viewed in a different light.

Depending on TD’s view of appropriate corporate social responsibility, this isn’t necessarily an issue. For instance, according to the framework developed by Geoffry Lantos, TD may base its operations on the belief that investment should be strategic (Declorde, 2013, p. 40). According to this modus operandi, TD would only invest in socially responsible initiatives when it benefits both their company and society. This does not detract from the benefits that TD’s initiatives have, but rather, better explains how they determine where to invest.

IV. CORPORATE SOCIAL RESPONSIBILITY

CSR Pillars and Environment

TD bank and its subsidiaries seriously care about their reputation and strive to be known for their high degree of corporate social responsibility. This can be seen in the volume of detailed official CSR reports that they publish which range from comprehensive general reports to reports focusing on LGBTQ+ and Indigenous communities. A focus on the environment is one of the pillars of TD’s corporate social responsibility focuses. They have showed this in action by

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reducing their paper usage by an impressive 45% from the years 2010 to 2017 (“Corporate Responsibility Report”, 2017, p. 9). This action has lowered their carbon footprint and is one of the ways in which they intend to tackle the urgent matter of climate change. Understanding the value of reducing carbon dioxide production, TD has provided charging stations for electrical cars at 13 of their branches in Canada (“Corporate Responsibility Report”, 2017, p. 47). This number could be improved, but their initiative may allow for more customers to see the practicality of electrical cars when visiting a branch.

Financial Education

TD continues to support education to promote lifelong learning and increase financial security. They have, through employees, educated more than six thousand potential homebuyers in the United States on the factors that one must consider while searching for a home as well as about the mechanisms and stages of the mortgage process (“Corporate Responsibility Report”, 2017, p. 42). By providing online calculators and having accessible and easy-to-read webpages, TD can reach a wider audience which would gain helpful knowledge on real estate. This practice is very ethical of TD, as it is available to any person with an internet access and is not reserved for account holders. TD also supports education for youth. In the state of Pennsylvania, they created a Financial Literacy Lab along with a curriculum in Cristo Rey High School in order to inform students and their families, staff members, and the local community (PR Newswire Association LLC., 2018). In Canada, TD has created Community Leader Scholarship. In the year 2018, twenty high school students received this $10,000 tuition scholarship which also has an extra $7,500 a year for other student expenses to finance their higher education (“Community Leadership Scholarships”, n.d.).

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Civil Society

` TD works with a multitude of civil societies in different circles. For instance, TD is the biggest supporter of the Youth and Philanthropy Initiative, which is a contest like program in which high school students from across Canada give presentations about charities to a panel of judges in an attempt to win $5,000 for their charity of choice (Youth and Philanthropy Initiative, n.d.). Recently, TD gave half a million dollars to the Youth and Philanthropy Initiative, so that the 20,000 students competing in 2019 may direct it to 100 different charities (Toronto.com, 2018). This month, TD donated another half a million dollar worth of instruments to London Girls Rock Camp which is a music camp in London, Ontario for girls aged eight to fifteen (London Girls Rock Camp, n.d).

LGBTQ+ Involvement

Being a strong supporter for the sexually and gender diverse is a motif in TD’s charitable contributions. In 2014, they supported more than 42 prides across North America (“Building Pride”, 2014, p. 2). TD is the only bank sponsor for Fierté Canada Pride, the Canadian national association of Pride organization (Fierté Canada Pride, n.d.). Within the National Capital Region, they are the only presenting sponsor, and the only bank sponsor for Ottawa Capital Pride (Ottawa Capital Pride, n.d.). Being the sole financial institution donor to these LGBTQ+ civil societies shows TD’s proactive involvement with the community. Their donations and support, along with their inclusive internal policy has resulted them winning the most inclusive corporation award by the National LGBTQ Chamber of Commerce (National LGBTQ Chamber of Commerce, n.d.). These factors being considered, it is likely that they are exaggerating some of their contributions. For example, TD states that they are a sponsor of the Human Rights Campaign (HRC), a charity based in the United States (“Building Pride”, 2014, p. 11); however, they are not stated on the HRC website as a sponsor (Human Rights Campaign, n.d.). The bank also claims to be a

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supporter of the Gay Men’s Health Crisis (“Building Pride”, 2014, p. 11), a community-based aids service organization. Again, they are missing from the organization’s website which names over 1,000 donors (GMHC, 2016).

While it is possible that the aforementioned gaps are a result of the organizations not taking proper note of their donors, it is more likely that TD is trying a little too hard to seem socially responsible. Having such long and comprehensive CSR reports results in information not being checked as thoroughly and to have facts be misreported. This suggests that TD is under pressure to seem more and more of a partner with civil societies.

To supplement the financial support that the bank provides to charities, it has also created and maintains a directory called the TD Volunteer Network, through which organizations can contact TD employees who would like to volunteer (Malcolm, 2017). To encourage volunteerism and community involvement, after an employee volunteers more than 40 hours for a charity, TD gives $500 to that charity.

V. EVALUATION

The Bank’s charitable donations, equipment lending, and community volunteering are all strategically planned in order to reach many facets of the social sphere. This makes their corporate social responsibility efforts incredibly effective since they can reach individuals and groups with different interests while not contradicting any commitments they have made to other charitable organizations. The extent of TD’s reporting is another example of how organized they are a socially responsible corporation.

Global Business Challenges

In considering the degree to which TD has been able to alleviate global business challenges, you could say that their success as a company, in terms of profit, translates into success. A more individual-level approach could entail surveying customer reviews of TD

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Bank’s service; ‘MyBankTracker’ is an example of a service that provides such information. Of the 532 reviews on this website, TD holds a 2 out of 5 star rating. After looking through some of the reviews on the first page there seem to be only negative things said about TD. The different accounts depict different ways TD has failed to provide adequate service, failed to resolve issues related to customer usage of their services, and in specific cases “stolen” money from their customers via “ridiculous” service charges (MyBankTracker, 2019). To summarize online opinions of TD are negative to say the least. There is always the element of different biases to consider with reviews. While MyBankTeller depicts a negative corporate-consumer relationship, this only accounted for 532 people, whereas TD retains millions customers worldwide. It is possible this is not representative of the majority. However, even if TD’s service is not highly regarded, the company continues to be successful on the global scale. One online resource that ranked the largest and most profitable banks in the world placed TD as 13th overall (Eiff, 2019). If Canada’s population of 37 million is taken into account, this success becomes even more laudable. With consideration to the various challenges that they face, TD is doing a good job of facing global business challenges and succeeding as a profitable company.

Sustainability

In order to evaluate TD’s approach to global sustainability issues, it is useful to compare them to another company in the Canadian banking industry. Interestingly, RBC identifies the same four main stakeholders as TD in their 2017 Corporate Citizen Report: clients (i.e., customers); employees; society (i.e., community); and environmental sustainability (The Royal Bank of Canada, 2017, p. 10). One standard for comparison could be their implementation of the United Nations (UN) Sustainable Development Goals (SGDs), which were launched in 2015 and call upon companies and civil society “to work collaboratively in areas of critical importance for humanity and the planet” (“Corporate Responsibility Report”, 2017, pg. 6).

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Of the 17 calls to action, TD incorporates: no poverty; good health and well-being; quality education; gender equality; affordable and clean energy; decent work and economic growth; reduced inequalities; sustainable cities and communities; and climate action. TD’s Ready Commitment and its four drivers for change address the UN SDGs that TD work towards. Better health is the first driver and it aims to increase investment in solutions that support equitable health outcomes. The next driver is financial security, which focuses on increasing children’s access to learning programs, investing in entrepreneurship and small businesses, improving access to affordable housing and increasing financial literacy in order to better people’s opportunities. Vibrant planet, the third driver for change, attempts to protect more green spaces and has a target of $100 billion in lending (and other programs) towards low-carbon initiatives by 2030. And finally, the connected communities driver responds to local needs in integrating people into communities and support diverse art and culture (“Corporate Responsibility Report”, 2017, pg. 5).

RBC incorporates 8 of the UN SGDs: good health and well-being; quality education; gender equality; clean water and sanitation; decent work and economic growth; reduced inequalities; sustainable cities and communities; and partnership for goals. In order to meet these goals, RBC plans to support: organizations that promote environmental sustainability, particularly with regard to clean water initiatives; arts organizations that focus on professional achievement; organizations addressing community challenges, notably those targeting diversity; partnership capabilities in reaching the UN SDGs; and provide opportunities for practical work experience to youth (The Royal Bank of Canada, 2017, p. 64).

The points at which RBC and TD differ are as follows: TD incorporates the no poverty, the affordable clean energy and the climate action goals, as distinct from RBC; and RBC

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incorporates the clean water and sanitation and the partnership goals, as distinct from TD. Although it is not yet possible to compare the results of these frameworks, these differences indicate that TD has a greater focus on green investment than RBC, whereas RBC may be more devoted to partner-solutions than TD. However, as is evident from their identified key stakeholders, TD and RBC are fairly comparable in their corporate social responsibility efforts.

Critically Assessing Stakeholder Management

TD claims to have been the first in North America to provide same-sex spousal benefits but seems to have slowed down in its progress with regard to its LGBTQ+ advocacy. For instance, the ways in which tellers have reportedly interacted with customers trying to open an account with regard to preferred gendered honorifics (e.g., Mr., Ms., or Mrs.) and names has been highly criticized by various youth groups. Other financial institutions, like Meridian Credit Union, ask for one’s preferred name while maintain their reporting obligations. While traditional banks have been slower to implement such practices, credit unions have made the honorifics optional, or removed them altogether. This suggests that TD needs to focus on how their core values and donations are not enough if not backed by a strong internal policy.

When accessed by BankTrack, TD Bank ties for last place with RBC in the implementation the United Nations Guiding Principles on Business and Human Rights among banks in North America (BankTrack, 2016, p. 12). Although 78% of global banks assessed scored less than 6 points out of 12, TD scored a mere 0.5 points. TD’s faults included their lack of a policy of commitment to respect human rights, failing to showing that their due diligence regarding the collection of input from affected groups and stakeholders, and not having a ‘grievance mechanism’ established to help people negatively affected by the bank’s activities. Adding human rights to the connected communities’ section of their core drivers for change is a step forward that TD needs to take as a multinational institution.

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VI. CONCLUSION

As has been demonstrated above, TD contributes a large sum of money to numerous initiatives related to corporate social responsibility. For instance, TD has a number of movements related to improving their reputation as an organization that helps the communities in which it operates. With consideration to ethics and morality, it could be said that TD Bank needs to make a few adjustments in their customer service and ethical regulation. As previously mentioned, a considerable amount of reviews have been left by unsatisfied customers. While TD is doing a decent job at maintaining their image and reputation on a large scale, it is evident that they need to improve in their day to day customer interactions. Be that as it may, TD is still deserving of being in the top 50 best corporate citizens in Canada. As stated above, TD invests in a number of socially responsible initiatives that benefit both themselves and the different causes they are supporting. The positive effects of these initiatives outweigh some of the more negative aspects of their interactions within different communities. Toronto-Dominion Bank succeeds in demonstrating a considerable level of corporate social responsibility that is worthy of being recognized.

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VII. REFERENCES

BankTrack. (2016, June). Banking with Principles: Benchmarking Banks against the UN Guiding Principles on Business and Human Rights. Retrieved from: https://www.banktrack.org/download/banking_with_principles/bwp_ii_final.pdf

Corporate Knights. (2017, June 6). 2017 Best 50 Issue: Featuring 2017 Best 50 Corporate Citizens in Canada ranking. Retrieved from: https://www.corporateknights.com/magazines/2017-best-50-issue/2017-best-50-results-14967251/

Delcorde, D. (2013). Canadian Business and Society. Dubuque, Iowa: Kendall Hunt Publishing Company.

EIFF. (2019). Largest Banks in the World. Retrieved from: http://www.eiiff.com/banks/

Fierté Canada Pride. (n.d.). About Us. Retrieved from: http://fiertecanadapride.org/about-us/

Fierté Canada Pride. (n.d.). Our Sponsors & Supporters. Retrieved from: http://fiertecanadapride.org/sponsors-supporters/Majmudar, N. R. (2015). CSR: what the banking industry should really focus on. Retrieved from The Economic Times: https://economictimes.indiatimes.com/blogs/ResponsibleFuture/csr-what-the-banking-industry-should-really-focus-on/

GMHC. (2016). Our Supporters. Retrieved from: http://www.gmhc.org/about-us/our-supporters

Green, H. (2013). Banking on America: how TD Bank rose to the top and took on the U.S.A. HarperCollins Publishers Ltd. Morisset Library: HG 2708 T67 G74 2013.

Human Rights Campaign. (n.d.). Corporate Partners. Retrieved from: https://www.hrc.org/hrc-story/corporate-partners/

London Girls Rock Camp. (n.d.). About us. Retrieved from: https://www.londongirlsrockcamp.ca/about

Malcolm, L. M. (2017, September 13). Great Examples of Employee Volunteer Programs | HeartPress PR. Retrieved from: https://heartpress.ca/great-employee-volunteer-programs

Market Watch. (2019). Toronto-Dominion Bank . Retrieved from: https://www.marketwatch.com/investing/stock/td/financials/

Miratel Solutions. (2011). Top 50 Canadian CSR business list. Retrieved from: http://www.miratelinc.com/blog/top-50-canadian-csr-business-list/

MissionStatements.com. (n.d.). Toronto-Dominion Bank. Retrieved from: https://www.missionstatements.com/mission_statement/Toronto-Dominion-Bank

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MyBankTracker. (2019). TD Bank. Retrieved from: https://www.mybanktracker.com/TD-Bank/Reviews

National LGBT Chamber of Commerce. (2018). “Best-of-the-Best” Corporations for Inclusion Named by NGLCC and Partners in the National Business Inclusion Consortium (NBIC). Retrieved from: https://nglcc.org/press-release/botb18

Office of the Commissioner of Lobbying of Canada. (2019, February 13). 12-Month Lobbying Summary: The Toronto-Dominion Bank. Retrieved from: https://lobbycanada.gc.ca/app/secure/ocl/lrs/do/clntSmmry?clientOrgCorpNumber=5329&sMdKy=1554148362357

Ottawa Capital Pride. (2018). Sponsors for 2018. Retrieved from: https://ottawacapitalpride.ca/sponsors/

PR Newswire Association LLC. (2018, March 12). The TD Charitable Foundation Invests More Than $5M To Strengthen Local Communities. Retrieved from: https://www.prnewswire.com/news-releases/the-td-charitable-foundation-invests-more-than-5m-to-strengthen-local-communities-300612311.html

Schubert, J. (2015). 4 top challenges facing the banking industry right now. Digitalist Magazine. Retrieved from: https://www.digitalistmag.com/industries/2015/08/27/4-top-challenges-facing-banking-industry-right-now-03352186

The Royal Bank of Canada. (2017). Corporate Citizen Report: Environment, Social and Governance (ESC) Investor Report 2017. Retrieved from: http://www.rbc.com/community-sustainability/_assets-custom/pdf/RBC-CCR-Report-2017-e.pdf

The Star. (2017, March). Unethical bank practices point to the need for consumer protection. Retrieved from: https://www.thestar.com/opinion/editorials/2017/03/16/unethical-bank-practices-point-to-need-for-consumer-protection-editorial.html

Toronto-Dominion Bank. (2018). Bank locations. Retrieved from: https://www.bank-locations.us/td-bank

Toronto-Dominion Bank. (2014). Building Pride: Celebrating the LGBTA Community. Retrieved from: https://www.td.com/document/PDF/corporateresponsibility/English%20online%20LGBTA%20report.pdf

Toronto-Dominion Bank. (n.d.). Communities. Retrieved from: https://www.td.com/corporate-responsibility/community/index.jsp

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Toronto-Dominion Bank. (n.d.). Community Leadership Scholarships. Retrieved from: https://www.td.com/ca/en/personal-banking/solutions/student-banking/community-leadership-scholarship-for-canadians/

Toronto-Dominion Bank. (2011). Code of Conduct and Ethics. Retrieved from: https://www.tdbank.com/aboutus/code_conduct_ethics.html

Toronto-Dominion Bank. (n.d.). Conduct and Ethics. Retrieved from: https://www.td.com/corporate-responsibility/crr-2010/our-approach/governance/conduct-ethics-index.jsp

Toronto-Dominion Bank (n.d.). Colleagues. Retrieved from: https://www.td.com/corporate-responsibility/workplace/index.jsp

Toronto-Dominion Bank. (2019). Corporate Governance Structure. Retrieved from: https://www.td.com/about-tdbfg/corporate-governance/corporate-governance-structure/practices.jsp

Toronto-Dominion Bank. (2009). Corporate Responsibility Report. Retrieved from : https://www.td.com/document/PDF/corporateresponsibility/crr2009/approach/td-corporateresponsibility-crr2009-approach-our-values.pdf

Toronto-Dominion Bank. (2017). Corporate Responsibility Report. Retrieved from: https://www.td.com/document/PDF/corporateresponsibility/2017-Final-CRR_EN.pdf

Toronto-Dominion Bank. (n.d.) Customer Experience. Retrieved from: https://www.td.com/corporate-responsibility/customers/service-and-convenience.jsp

Toronto-Dominion Bank (n.d.). Environment. Retrieved from: https://www.td.com/corporate-responsibility/environment/index.jsp

Toronto-Dominion Bank. (n.d.). Financial Education. Retrieved from: https://www.td.com/corporate-responsibility/customers/financial-education.jsp

Toronto-Dominion Bank. (n.d.). Find a TD Bank Near You. Retrieved from: https://www.tdbank.com/net/absearch/default.aspx#

Toronto-Dominion Bank. (n.d.). Historical Facts. Retrieved from: https://www.td.com/about-tdbfg/corporate-information/tds-history/historical-fast-facts.jsp

Toronto-Dominion Bank. (2019). Products & Services. Retrieved from: https://www.tdcommercialbanking.com/products-services/index.jsp

Toronto-Dominion Bank (n.d.). Serving Diverse Needs. Retrieved from: https://www.td.com/corporate-responsibility/diversity/serving-diverse-needs/index.jsp

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Toronto-Dominion Bank. (2019). Strategy and TD Framework. Retrieved from: https://www.td.com/investor-relations/ir-homepage/corporate-overview/vision-and-strategy/visionstrategy.jsp

Toronto-Dominion Bank. (2018). The Official Board. Retrieved from: https://www.theofficialboard.com/org-chart/td-bank

Toronto-Dominion Bank. (2019). The Ready Commitment. Retrieved from: https://www.td.com/corporate-responsibility/ready-commitment/?utm_source=bing&utm_medium=cpc&utm_campaign=The%20Ready%20Commitment%20-%20Brand%20(19_S_BR_BSR_AO_ACQ_EN_BRA)&utm_term=%2Btd%20%2Bresponsibility&utm_content=Ready%20Commitment%20-%20Brand%20-%

Toronto.com. (2018, June 20). TD Bank Group donates $500K to Youth and Philanthropy Initiative. Retrieved from: https://www.toronto.com/news-story/8681431-td-bank-group-donates-500k-to-youth-and-philanthropy-initiative/

TransferWise. (2016). 5 ways technology has changed banking forever. Retrieved from: https://transferwise.com/us/blog/5-ways-technology-has-changed-banking

Vasil, A. (2009). From greenest to meanest: ranking canada's banks. Now Toronto. Retrieved from: https://nowtoronto.com/from-greenest-to-meanest-ranking-canadas-banks/

Youth and Philanthropy Initiative. (n.d.). What is YPI? Retrieved from: https://www.goypi.org/about/what-is-ypi/

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VIII. PERSONAL ETHICS STATEMENT

By signing this Statement, I am attesting to the fact that I have reviewed not only my own work, but the work of my colleagues, in its entirety. I attest to the fact that my own work in this project meets all of the rules of quotation and referencing in use at the Telfer School of Management at the University of Ottawa, as well as adheres to the fraud policies as outlined in the Academic Regulations in the University’s Undergraduate Studies Calendar. Academic Fraud Webpage To the best of my knowledge, I also believe that each of my group colleagues has also met the rules of quotation and referencing aforementioned in this Statement. I understand that if my group assignment is submitted without a signed copy of this Personal Ethics Statement from each group member, it will be interpreted by the Telfer School that the missing student(s) signature is confirmation of non-participation of the aforementioned student(s) in the required work. ______________________________ __________________________ Signature Date ______________________________ __________________________ Last Name (print), First Name (print) Student Number ______________________________ __________________________ Signature Date ______________________________ __________________________ Last Name (print), First Name (print) Student Number ______________________________ __________________________ Signature Date ______________________________ __________________________ Last Name (print), First Name (print) Student Number ______________________________ __________________________ Signature Date ______________________________ __________________________ Last Name (print), First Name (print) Student Number