Bank Australia is taking its revamped mission and positioning very seriously indeed, seeking member approval to make clear that its purpose is to serve more than its members.
“As a mutual organisation, the purpose of the company is to operate for the benefit of members whilst having an overall positive impact on society and the environment,” is the proposed new language in the foreword to the bank’s constitution.
The bank’s board then proposes adding an entirely new section under the heading “Stakeholders”, with terms that include “considering the following factors:
· the likely consequences of any decision or act of the company in the long term;
· the interests of the company’s employees;
· the need to foster the company’s business relationships with suppliers, customers and others;
· the impact of the company’s operations on the community and the environment.
· the desirability of the company maintaining a reputation for high standards of business conduct; and
· the ability of the company to create an overall positive impact on society and the environment.”
In an explanation in the notice for the annual meeting, directors told members: “In 2020, Bank Australia became a certified B Corporation. Certified B Corporations are businesses that meet high standards of verified social and environmental performance, public transparency, and legal accountability to balance profit and purpose
“In 2023, Bank Australia is due to recertify as a B Corporation.
“To achieve B Corporation certification, B Corporations are now required to amend their governing documents to articulate that their purpose includes societal and environmental benefit, and that their directors explicitly consider stakeholders in their decision-making.”
Bank Australia is one of a handful of mutual banks certified as B Corps.
The bank will hold its AGM in late November.