Why Building Ethical Culture Must Be Job 1
SALT LAKE CITY–Enterprise feedback management consultancy Allegiance issued a white paper on how to create an ethical culture and the benefits companies gain by doing so. The steps are:
1. Establish an enforceable code of conduct–The process should be led by those at the top of the company and should include employee input.
2. Initial and ongoing training– Training begins once a person is hired and should continue throughout the life of the employee.
3. Regular communications.
4. Anonymous reporting hotline–Companies should provide employees with a safe, anonymous and confidential way to report inappropriate activities.
5. Enforcement/Action– Companies must be willing to enforce the code of conduct.
6. Rewarding employees that live the culture–Companies should let employees know that an ethical culture is important to the organization and should reward those employees that help to establish the culture.
For info: www.allegiance.com
Customer-Oriented Pricing Is Needed
NEW YORK–As customers grow weary of retail banking pricing practices, banks are finding themselves facing additional pressure to rethink their pricing, according to Simon-Kucher Partners.
The consultancy said its latest survey of the leading retail banking executives validates this problem. The pricing strategy firm said respondents clearly recognize several industry-wide pricing challenges. Specifically, the executives rated offering customers attractive introductory rates and raising them a short time later (83%), not offering existing customers the same attractive rates and prices offered to new customers (76%), and confusing the customer by offering many very similar products (73%) as the most heavily scrutinized pricing practices.
With an abundance of banking options available, banks that employ dubious pricing practices that solely focus on profits (and not customer needs) actually are at risk of losing profitability in the long run, the firm said.
For info: www.simon-kucher.com
Downturn Puts More Pressure On Cards
NEEDHAM, Mass.–Banks have long relied on strong return on asset (ROA) performance from credit cards.
Yet in the midst of the current credit crunch, new research from TowerGroup found the combination of higher credit card losses and lower consumer spending will cause credit card ROAs for 2008 to drop at least 15% below 2007 levels (already lower than 2006 ROA levels).
Yet despite this dreary forecast, TowerGroup suggests that by focusing their business strategies on customer retention and expansion rather than acquisition, credit card issuers still can tap profit opportunities in 2008.
TowerGroup said lessons learned from the 1990 recession and past economic downturns suggest credit card issuers should focus their efforts on current customers.
For info: www.towergroup.com.(c) 2008 The Credit Union Journal and SourceMedia, Inc. All Rights Reserved.http://www.cujournal.com http://www.sourcemedia.com
