People’s Leasing Company practitioner of corporate responsibility to pay social dividends

The Best Corporate Citizens Review is a fortnightly series of reviewing some of the best corporate citizens in Sri Lanka by Daily FT in partnership with the Ceylon Chamber of Commerce.

The main objective at the formative stage of incorporating of People’s Leasing Company Ltd. (PLC) as a fully-owned subsidiary of People’s Bank in 1995 was to provide quick leasing facilities and related financial services to the valuable customers of People’s Bank.

Annual Polythene Collection Project at Adams Peak implemented by the Ratnapura Branch

At that time, People’s Bank was unable to provide a comprehensive package deal to its customers including leasing facilities due to lack of expertise in leasing. The principal lacuna was successfully rectified with the commencement of commercial operation in May 1996. With the gradual expansion of leasing operations, it was commercially viable to extend leasing business by walking an extra mile beyond the customers of People’s Bank by enjoying a perfect mix of private sector dynamism and public sector accountability.

When it comes to rural areas, people have a lot of faith and trust in two State banks. Therefore its linkage with People’s Bank is definitely a major strength. In 2003, People’s Leasing became the market leader in the leasing sector and retained the supremacy for the last nine consecutive years. People’s Leasing has built a robust CSR profile over the years as well, engaging in various project initiatives to uplift lives and provide essential infrastructure services to communities and the environment. CEO/GM D.P. Kumarage said: “Today’s corporates are judged not just by their profitability, but by what they do for the society in which they operate.” He feels that community engagement efforts are an integral part of the company’s business philosophy.

In recognition of these endeavours, People’s Leasing was the only leasing company which was named among the Bent Corporate Citizens of Sri Lanka as selected by the Ceylon Chamber of Commerce in 2009 and 2010. The company also bagged a Commendation Award for Transparency in Sustainability Reporting by ACCA

The Nuwara Eliya Branch of the company completed the renovation of the ENT Ward of the Nuwara Eliya Base Hospital

One of its main pillars of strength and best asset is human capital. The company spends heavily on training and development of staff in building capacity, skills and leadership qualities. It does not spend much on advertising. Therefore, through its staff, their customer service levels and contributions, it retains market leadership. The positive impact it creates in society through CSR initiatives builds brand visibility through its customers who act as brand ambassadors.

Group business strategies

The growth engines are business growth, cost control, improvement of margins; diversify business in forming subsidiaries pertaining to insurance, finance, property development, fleet management and micro finance.

• Profits in the Rupees Billion Club
• Maintained non- performing credit below 3%
• Retaining the market leadership position from 2003 onwards consecutively

Categories of CSR initiatives

In line with Global Reporting Initiatives (GRI), PLC’s CSR initiatives can be categorised under education, healthcare, infrastructure development, stakeholder relations, environment, cultural and religious activities. Projects undertaken from April 2010 to March 2011 are briefly listed:

Projects and beneficiaries

Education:

• Granting of scholarships to two children on a monthly basis: Children of a late PLC customer
• Construction of a library building for Mahawila Primary School, Panadura: 515 students and 25 teachers
• Presentation of school bags and stationery to school children in Sampoor, Muttur and Galle areas: 60 students in Sampoor, 100 students in Galle
• Presentation of computers and relaxation programme: Students and teachers of Tamil Central College in Vavuniya; 150 students for relaxation programme
• Water supply project at Keragala Sangaraja College, Delgoda: 400 students at this remote school

Healthcare

• Renovation of Government Hospital/quarters in Buttala after 100 years: 300-500 patients per day
• Renovation of ENT Ward of Nuwara Eliya Base Hospital: 3,500 patients per annum, 10 medical staff, 15 nurses, 20 minor staff
• Renovation of medical clinic at Mallika School Hiniduma: 1,000 patients are examined by doctors free of charge
• Sponsored blood donation campaign: 250 and 325 blood donors from Kelaniya and Galle area

Infrastructure development

• Construction of public market place with all amenities at Lunugamwehera in Hambantota District (work in progress): 1,000 shoppers, 350 suppliers and 75 vendors

Stakeholder relations

• Awareness programme for three wheeler operators: 180 three wheeler operators
• Donation of mattresses to Army officers of the Gajaba Regiment at Kelanitissa Power Station: 50 Army officers who reported back in Colombo after the war
• Sponsored staff performance appraisal programme of Western Zone 1 & 2 of People’s Bank: 2,400 bank staff
• Sponsored social networking for People’s Bank staff and customers: 2,250 bank staff, 1,000 customers
• Sponsored inter-bank cricket tournament held by the Central Bank of Sri Lanka: 17 teams from 11 State and private banks participated

Religious/cultural

• Giving away water bottles to pilgrims at Sri Maha Bodhi in Anuradhapura on Poson Poya Day (annual event): 20,000 devotees who received water bottles
• Annual project to provide refreshments for viewers of Kandy procession: 17,000 viewers of the perahera

Environment

• To avoid environment pollution at Adam’s Peak area, which is a Heritage Site declared by UNESCO: Annual polythene collection and distribution of cloth bags to keep polythene free route to Adams Peak (Ratnapura and Nuwara Eliya branches were involved; 1,700 pilgrims who visited Adams Peak through Palabaddala and Hatton route received cloth bags
• World Environmental Day programme in Galle association with the Central Environmental Authority at Angulugaha Vidyalaya, in Galle: 100 students and 20 staff voluntary participationTree planting campaign in Galle to mark the relocation of the Galle Branch: Staff who volunteered in the project staff, customers and well wishersPeople’s Leasing Company Ltd. was the Second Runner Up of the Under 10 Billion Turnover Category at the Best Corporate Citizen Awards 2010.