Social

Some of the group’s entities have included provisions relating to respect for human rights and the prohibition of discrimination in their work regulations or codes of ethics. The group takes into account the issues of respect for human rights both in its processes and in its daily practice. The bank’s policy with regard to respect for human rights is included in:

• The Code of Ethics of PKO Bank Polski,
• Principles for counteracting mobbing and discrimination, and the procedure for handling complaints concerning violation of employee rights;,
• Recruitment rules and standards,
• Agreements concluded with service providers (applies to agreements on the protection of personal data),
• Strategic programs such as #ILikeToWorkHere.

Issues related to forced labor and child labor are not directly reflected in the bank’s regulations, as the prohibition of forced labor results from Art. 4 of the Convention for the Protection of Human Rights and Fundamental Freedoms, and the prohibition of employing persons under the age of 15, results from Art. 190 par. 2 of the Labor Code. In its practice, the bank also complies with the principles contained in the Children’s Rights and Business Principles.

Identification of human rights in the context of the business operations and the supply chain is one of the most important elements of the bank’s analysis. No juvenile employment or forced labor was identified in the group’s entities operating in different countries. The issue of respecting human rights in the supply chain in the context of group entities boils down to relations with suppliers and outsourcing of services (mainly banking). The group applies the same human rights standards throughout the entire supply chain in its business activities. Human rights issues are reflected in the procedures and agreements signed with these entities. Respecting human rights is demonstrated by the example of activities carried out in the entities of the group:

• counteracting mobbing and discrimination,
• basing the rules of periodic appraisal and performance summary on a dialogue with the employee, the employee’s participation in the process, collecting feedback from a variety of sources,
• using recruitment principles that ensure equal treatment of candidates during the selection process for filling vacancies, without any discrimination, prejudice and without obtaining information that could breach the candidate’s rights and personal dignity,
• basing promotion decisions on an objective appraisal of qualifications, skills and performance,
• supporting diversity in management, in particular with respect to age, experience, style of work, thinking; promotion of diversity among managers as an asset and not a limitation,
• enabling employees to express their opinions and influence important issues regarding the organization and working conditions, management, organizational culture, as well as enabling the provision of information about perceived crimes and fraud – assuring their anonymity and confidentiality (whistleblower mechanism),
• protecting personal rights (personal data, sensitive data) of employees and customers through carefully prepared procedures and systems and the inclusion of restrictive entries in contracts concluded with service providers who have access to such data,
• creating conditions for satisfying needs related to leisure and culture, as well as respect for the work-life balance principle,
• assuring freedom of association,
• creating a safe working environment – in view of the exceptional circumstances resulting from the pandemic, in 2020 the additional Intra websites were launched (“Coronavirus”, “Remote work”), as well as the dedicated newsletters, in which the bank provided the necessary information and guidelines in the area of tools or the organization of work on an ongoing basis. Psychological support was also provided.

The group entities monitor the risks accompanying the individual human rights and manage them at the firm’s level. The bank takes actions to prevent violations of human rights, including employee rights, but it is not able to entirely eliminate all conflicts. In 2020 final verdicts were passed in 20 cases concerning employment relationships. The bank won 15 of these cases (the claims were dismissed) and lost 5 (the claims were granted).

The basic internal communication tool is the Intra portal which contains information on benefits, privileges, rights and obligations of the bank’s employees. On the intranet portal of the bank the employees may find the following documents:

• PKO Bank Polski Code of Ethics and a presentation of the bank’s Values,
• Recruitment principles – regulations updated and communicated to the organization in 2020,
• Recruitment standards – regulations updated and communicated to the organization in 2020,
• Rules on prevention of bullying and discrimination and the procedure for handling complaints concerning breaches of the employee rights – provisions updated and communicated to the organization in 2018,
• Good practices for serving disabled customers.

Human rights are communicated externally through the bank’s publicly accessible website, which contains the information about the PKO Bank Polski Foundation, about the idea of the charity it pursues as a measure of respect for the environment, in particular for other people.

The task of the bank’s Procurement Department is to oversee the procurement process in order to punctually supply materials and services needed of an appropriate quality. In addition to the bank’s interest in the broad sense, the Procurement Department oversees the compliance of the procurement processes with the principles of ethics, including the principle of treating all participants equally. When selecting suppliers, the bank also takes into account certain criteria other than price, including compliance with business ethics, aimed at transparent relationships with suppliers. The procurement policy is developed based on best market practice. The main regulatory provisions are the “Principles” and “Procedures of purchasing goods and services at the bank”.

Relations with suppliers are built on the basis of honesty, transparency of action, mutual respect and professionalism, in particular through:

• honouring the accepted arrangements and obligations,
• settling payments and other liabilities on time and in accordance with the agreed contractual terms,
• resolving difficult and conflict situations through dialogue,
• verifying suppliers only on the basis of substantive and business premises,
• informing suppliers about standards of conduct.

From September 2020, the bank began analysing the situations which could cause potential conflict of interest more thoroughly. In addition to the existing practice, where the employees handling the procurement process declare the absence of a conflict of interest, information for the suppliers with a map of the conflict of interest is attached to each request for a proposal. The supplier is obliged to disclose all situations or relationships, which could cause a conflict of interest in the future, with the bid. If circumstances that could lead to a conflict of interest occur after the bid has been submitted, at the stage of signing the contract or afterwards, the affected bidder or supplier shall be obliged to make the declaration immediately.

The bank and other entities of the group approach the issue of settling their liabilities to suppliers in a timely manner with due care and diligence. In 2020, the value of invoices paid late, on which interest was charged as a result, constituted a marginal percentage of all the invoices paid and it decreased significantly in the entire group. The list does not include payments, a possible delay in which was agreed with the supplier, because the collection of this information would be excessively laborious.

The suppliers who are interested in starting cooperation with the bank may register at the PKO procurement platform on their own. Every such supplier must be approved by an employee of the Procurement Department. The suppliers who have been approved may take part in procurement proceedings.

The entities of the group affect the suppliers with respect to socio-environmental issues at the stage of each request for proposal sent by the bank or any of the other entities of the group. In accordance with its wording, when joining the procurement procedure, the suppliers must declare that they are guided by the overriding principle of respecting the law across the supply chain, a sense of justice and social responsibility and they understand the influence exerted by their activities on the natural environment, their surroundings, the other party, their employees, co-workers, subcontractors and business partners, and they are guided by the principles of ethics. A further part of the statement contains detailed declarations regarding:

• caring for workplace safety,
• being guided by cooperation, trust and a responsible and partnership approach to the other party,
• compliance with the rules on working time and remuneration for work,
• respecting human rights,
• counteracting corruption,
• caring for the natural environment.

[414-1] In 2020, all new suppliers (417) were verified by the bank in terms of social criteria.

[414-2] The bank did not note any negative social impact in the supply chain.

In 2020, the bank worked on renewing the Corporate Certification obtained in 2016. The Certificate is a quality mark awarded by the Chartered Institute of Procurement and Supply (CIPS), the biggest procurement organization in the world. The process was completed in 2021 with renewal of the certificate. At present, PKO Bank Polski is the only financial institution with this certificate in Poland and the entire Central and Eastern Europe. Corporate Certification is a globally recognized distinction awarded to organizations applying the highest standards of procurement processes.

[404-2] Development activities are adjusted to the nature of the bank and the individual entities of the group and regulated by internal regulations, which guarantees a flexible approach to the development policy. “The principles of employee development and succession planning in PKO Bank Polski” set the goals, directions and activities of the bank in the area of management of development of the bank’s employees and co-workers. The main assumption of the training policies is supporting:

• achievement of the strategic goals of the group entities and the business goals,
• onboarding of new employees,
• assurance of professional qualifications for the employees and the adaptation of their knowledge and skills to the changing requirements of the market on which a given entity operates,
• preparation of the employees for the implementation of new solutions and products offered by the group entity or for introducing changes into the existing solutions and products offered.

All employees, regardless of their age or gender, may benefit from training activities in the group. Individual entities may apply the criterion of the position held when referring employees to specific training, such as participation in education at degree level (different levels of education at the individual companies of the group) or foreign language courses. The employers finance training activities in whole or in part.

The year 2020 was exceptional because of the epidemic, and therefore development activities were mostly conducted online. The bank updates the list of training courses every quarter and communicates it on the intranet portal. It contains a number of development activities for employees and managers, with a description of these activities and an easy to use tool for signing in up for the individual training sessions. Newly implemented training courses are related to cloud technologies or cybersecurity. The bank’s employees actively use the internal e-learning platform, mainly for holding trainings on product knowledge, knowledge of processes and use of IT applications.

[404-3], [404-1]

The bank conducts projects to develop both hard and soft skills. A team of several dozen internal trainers conducts group training, on-the-job training and internal workshops (also for interns). Group training is held by external companies in selected projects. The Digital Transformation employees have access to both internal and certified training courses in agile methods. Employees also participate in language courses.

As part of their professional development, the employees may apply for partial financing of their post-graduate studies, such as Master of Business Administration (MBA) or solicitor’s training. The bank also conducts adaptation trainings for new employees, which are adjusted to the needs of various business areas. Training courses organized at the bank are available to all employees regardless of the form of their contract (an permanent contract or a fixed-term contract (interns)). A new programme addressed to the retail sales network workers “In a new role” was launched in 2020 at the bank. Its aim is to prepare employees to take up new positions in Personal Banking and Corporate Banking.

The bank attaches a great deal of importance to the opinions of employees on matters related to their work, the opportunities for individual development and the company’s organizational culture. The surveys of the organizational culture, employee satisfaction and involvement are conducted at the bank every few years; most recently in 2019. The bank presents the results of the satisfaction surveys to the employees, as well as to the Management Board and the Supervisory Board, to provide them with an additional tool for analysing and forming proper relations with the employees.

The last survey clearly demonstrated that, as far as the “commitment” category is concerned, the following aspects are valued the most: relations with the immediate superior, quality of cooperation or the perceived sense of the work performed. The general commitment indicator of 70.6% (out of 100%) indicates that positive opinions prevail in the evaluations of the individual aspects of commitment (direct superior, sense of work, cooperation, remuneration and benefits, development and working environment). It means that, in the employees’ opinion, the bank creates good conditions of work and development.

No such survey was conducted in 2020 due to the pandemic; however, pulse check surveys (“How is your work?”) were conducted. The employees were asked about their opinions about remote and hybrid work.  The conclusions drawn from such surveys made it possible to introduce, on an ongoing basis, improvements and solutions adapted to the current needs.

In addition, regular surveys of the perception of the hybrid model of work are executed among the employees of the Headquarters and the Specialist Organizational Units. The results indicate that the employees have a positive opinion on the significant aspects of such work – efficiency, organization of work, as well as the satisfaction with work and wellbeing.

Employees are represented by the trade unions and the bank’s Employee Council. The employee organizations at the bank have the right to determine their own internal rules, are free to elect their representatives and appoint authorities, operate and prepare the programme for their operation. It is consistent with the principles of freedom of association referred to in the Convention No. 87 of the International Labour Organization on Freedom of Association and Protection of the Right to Organize. The employer does not prevent the employees from joining the trade unions and the Bank Employee Council or acting as their members in any way. Two trade unions operate at the bank:

• The National Trade Union of PKO BP S.A. Employees (representative union),
• “Solidarity” Independent Self-Governing Trade Union of PKO BP S.A. Employees.

Meetings with trade unions and the bank’s Employee Council are organized as necessary, at least a few times a year. The social partners are informed about the planned organizational changes without undue delay [402-1]. In 2020, the most frequently discussed issues concerned the functioning of the bank during the pandemic. Due to the pandemic, most meetings held in 2020 were remote meetings.

Trade union members constituted approx. 9.9% of the total number of employees as of 31 December 2020 (11% as at the end of 2019). Trade union members are Social Labour Inspectors at the bank. The bank cooperates with these social partners in accordance with the applicable regulations. In accordance with the generally applicable laws, the bank informs the social partners about:

• the employment-related aspects of the employer’s activity and economic situation and the changes anticipated in this respect,
• the employment level, structure and anticipated changes and the actions aimed at maintaining the level of employment,
• the actions that could cause significant changes in the organization of work or the basis of employment.

Where the law so requires, the bank carries out consultations or negotiations with the social partner. Consultations are carried out for example in the event of planned organizational changes resulting in significant changes in the organization of work, the level of employment and the type of employment contracts. Negotiations with the trade unions are conducted with respect to the salaries and social benefits. Employees may also report their complaints, opinions and suggestions through trade unions. Alternatively, they may do so without the intermediation of trade unions, using a dedicated e-mail address. An employee is entitled to additional support in the process of clarifying the complaint; namely, he or she may indicate a representative of a trade union organization or an employee representative appointed in accordance with separate internal regulations, who will participate in meetings with the employee or submit opinions on the validity of the claim.

In the group, a trade union organization is present at KREDOBANK. Trade union organizations do not operate in other entities of the group and the dialogue with the employees takes place in accordance with the applicable regulations. Its form is adapted to the size of the company and its specificity. In the larger subsidiaries, the dialogue with employees is conducted through elected employee representatives and using the forms of communication with employees accepted at that company: directly, or via e-mail or through the intranet. The employees have the opportunity to report complaints about a breach of employee rights and other irregularities. No collective disputes were recorded at the group entities.

[407-1] No operations or suppliers characterized by a high risk of restricting the freedom of association and collective agreements were identified in 2020 at the bank.

Friendly work environment. The strategy of creating a friendly environment includes such aspects as a functional workplace, implementation of a remote work model, or the digitization and simplification of processes. Creating a standardized, modern workplace, equipped with tools, equipment and properly arranged space, facilitate both individual and team work. Remote work allows for a flexible approach to completion of tasks. All these facilities allow both managers and employees to select a set of tools or use such a range of information that will meet their needs related to professional goals – individual and team goals.

#TimeForFeedback. A new process has been implemented in the bank, where cyclical summaries are performed of work results, competences, achievements, feedback or development goals of employees. They are aimed at supporting the employee in individual professional development. Expected attitudes and behaviours towards employees are included in a competence model based on the bank’s values. This model is universal, applies to all employees and promotes, among other things, communication and cooperation, which have an impact on building harmonious, diverse teams. As part of the solution introduced, employees also get feedback from their co-workers, thanks to which they can easily and quickly communicate mutual needs and expectations and opinions. This enables building a friendly work environment and understanding of the diversity aspect of employees.

Working in the Agile methodology. Within the Digital Transformation structures at the bank, teams with very diverse skills and competences have been created. Participants focus on each other, on interactions and cooperation; they efficiently react to changes, flexibly approach changes in the project. These assumptions allow employees to openly express their opinions, efficiently deliver work results and ensure task team integration.

Collaboration with external entities that supports diversity in the workforce includes:

• internship and training programmes being an opportunity for pupils, students and graduates of secondary schools and universities with various profiles,
• professional development programmes for people with disabilities in cooperation with external institutions, including the provision of workstations adapted to the needs of such people (principles for the implementation of occupational health and safety tasks, as well as technology and technical solution standards require taking the steps necessary to adjust workstations to the needs of persons with disabilities),
• cooperation with universities and high schools, under which workshops are organized at selected universities in Poland and at the bank, during which students have an opportunity to learn about selected areas of the bank’s operations.

Due to the pandemic and related restrictions (including the organization of remote work), cooperation programmes with external entities have been temporarily limited in 2020.

The bank organizes integration programs and supports employee initiatives to strengthen the integration of employees from different areas of operation and representing different social groups. These include sports initiatives and activities and charitable activities of employees as volunteers. These initiatives help create a friendly organizational culture and build relationships based on the diversity of employees’ interests.

Due to the pandemic and related restrictions (including the organization of remote work), the above programs were temporarily reduced in 2020.