Relations with stakeholders
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INTRODUCTION
One of the key elements of Banco Santander's sustainability policy is stable and lasting relations with all its stakeholders. Banco Santander has maintained for many years a fluid and constant dialogue with its stakeholders, enabling it to respond at any moment to those issues identified as relevant, in accordance with the bank's strategy and the demands and expectations of each stakeholder.
SHAREHOLDERS
Generate value for 3.2 million shareholders and provide the maximum transparency in information.
CUSTOMERS
Attain the highest level of satisfaction and reduce the number of complaints by offering to our 97 million customers products tailored to their needs and the best quality of service.
EMPLOYEES
Provide development opportunities for the almost 180,000 professionals, fostering talent via reference training programmes, promoting diversity and facilitating work-life balance measures.
SUPPLIERS
Guarantee equality of opportunity with the maximum transparency in the awarding of contracts.
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SHAREHOLDERS
PROFILE OF BANCO SANTANDER'S SHAREHOLDERS
The Bank had 3.2 million shareholders at the end of 2010, who directly or indirectly held Santander shares. The board held 253,156,054 shares, a high level compared to other banks which contributes to aligning the board's interests with those of shareholders. Individual shareholders held 37.81% and institutional investors 59.15%.
KEY FIGURES 2010STRUCTURE OF THE CAPITAL STOCK SHARES % Board 253,156,054 3.04 Individuals 3,149,068,382 37.81 Institutional investors 4,926,897,662 59.15 Total 8,329,122,098 100.00 4,999 million euros in dividends
0.60 euros in nominal dividend per share
12th largest bank in the World by market capitalization
1st in the euro zone by market capitalization
66,033 million euros in market value at the end of 2010
3.2 million shareholders, an all-time high
CHANNELS FOR SHAREHOLDERS AND INVESTORS
The Bank communicates with its more than 3.2 million individual shareholders via the shareholders' area whose functions are to provide the maximum transparency in information and stimulate the interest and participation of shareholders in the bank's issues.
The investor relations area, meanwhile, facilitates information to Spanish and foreign institutional investors and analysts.
The communication channels are:
• Attention lines in Spain, Portugal, the UK, Chile, Brazil, Mexico and the US, which tended to 253,969 consultations.
• The shareholder mail box, increasingly used and through which 173,260 subscribed shareholders are punctually informed of Group news. In 2010, 23,991 e-mails were tended to.
• The shareholder forum. Meetings are held regularly in order to make available to shareholders information on the Group and its outlook, and tend to all types of consultations and suggestions. In 2010, 214 forums were held and attended by 18,190 shareholders. In order to offer greater value added, well known specialists participated in some of these forums and contributes their analysis and experience.
• Furthermore, 692,095 letters from shareholders were tended to. The replies from the shareholder relations area are individualised and the board is informed of them for some of the issues and suggestions raised.
• A total of 172,656 SMS alerts were sent.
• The unit of large shareholders provide a more personalised attention to a small number of shareholders, but very important in terms of owning the bank's capital stock. The unit fosters the participation of these shareholders in decision-taking.
• Dedicated website for shareholders www.yosoyaccionista.santander.com
THE SANTANDER SHARE AND SHAREHOLDER REMUNERATION
The Santander share ended 2010 at EUR 7.928, 31.4% lower than in 2009 because of doubts over the consolidation of the economic recovery and market pressure on the banks of peripheral euro zone countries after the bail-outs of Greece and Ireland.
Since the end of 2008, shortly after the collapse of Lehman Brothers, the Santander share has increased 17.5%, outperforming the ibex-35 (+7.2%) and Eurostoxx banks (+8.9%) and below the rise in the DJ Stoxx banks (+29.9%).
Santander maintained during 2010 the shareholder remuneration thanks to the good performance of its results. The Bank assigned EUR 4,999 million to dividends, 2% more than in 2009 and in line with its policy of a pay-out of around 50% of attributable profit.
The total nominal dividend in 2010 was EUR 0.60, the same as in 2009. The dividend yield was 6.4%, charged to 2010's earnings. Santander, through its Dividendo Elección (scrip dividend) programme, again offered shareholders the possibility of opting to receive an amount equivalent to the second interim dividend charged to 2010's earnings in cash or shares and extended it to the third interim dividend (January/February 2011). The Bank thus increased its flexibility in remuneration, enabling shareholders to benefit from tax advantages. The result of the programme was a success, as 84% and 87% of shareholders opted to receive shares in the second and third interim payments, respectively.
PRESENCE IN SUSTAINABILITY STOCK MARKET INDICES
DJSi World is a selective index that incorporates 10% of the 2,500 companies in the Dow Jones World index - those with the best performance in the economic, environmental and social dimensions. The DJSi Stoxx consists of 20% of the leading sustainability companies of the European index (Dow Jones Stoxx index). The performance is assessed on the basis of an annual questionnaire which includes all the aspects of sustainability classified in three dimensions: economic, environmental and social. The rating agency Sustainability asset Management (SaM) then makes an analysis for a rating.
Santander is part of the DJSi World and, after the results of the annual review of the index in 2010, Santander maintained its presence in it. as shown in the charts below, the bank's scores are well above the average of the financial sector in all the assessed dimensions.
banco Santander has also formed part of the prestigious FTSE4Good index for a number of years.
The bank is included in other responsible investment indices such as the aSpi Eurozone, Ethibel Excellence Europe and Ethibel Excellence Global index.
THE SANTANDER SHARE IN THE DJSI
%
INDEX
- PROFILE OF BANCO SANTANDER'S SHAREHOLDERS
- CHANNELS FOR SHAREHOLDERS AND INVESTORS
- THE SANTANDER SHARE AND SHAREHOLDER REMUNERATION
- PRESENCE IN SUSTAINABILITY STOCK MARKET INDICES
OUR COMMITMENT
To create long-term value, guaranteeing equality of rights, with maximum transparency and fostering continuous dialogue through the existing channels.
MAIN ACTIONS IN 2010
• Maintain the dividend pay-out policy at around 50% of the Group's attributable profit.
• Opening of shareholders offices in those countries where the Bank operates: Chile and Portugal.
• Second and third Santander Dividendo Elección (scrip dividend) programmes: 84% and 87% of the capital stock, respectively, opted to receive the amount equivalent to the second and third interim dividend charged to 2010's earnings in shares.
• Involve shareholders in solidarity projects, such as solidarity golf.
OBJECTIVES IN 2011
• Install the electronic forum before the Bank's shareholders' meeting is held, as a way to foster the informed participation of shareholders in meetings.
• Launch the commercial website www.yosoyaccionista.santander.com at the global level.
• Extend corporate solidarity initiatives such as solidarity golf to all countries with a shareholder office.
Banco Santander regards profitability, solvency, transparency and equality of rights as Basic elements in its relations with shareholders
CAPITAL STOCK
TOTAL SHAREHOLDER RETURN
Millon euros
ENCOURAGING PARTICIPATION IN SHAREHOLDERS' MEETINGS
Among the measures adopted by the Bank to foster the informed participation of shareholders in meetings are the following
• Possibility of attendance at meetings owning just one share.
• No system to block shares in order to identify those who can attend the meeting. The requirement is to register in the name of the shareholder any number of shares five days before the meeting is held.
• Attendance at a distance by telematic means and exercise of the right to vote by post, physical means or electronically.
• Possibility for shareholders to exercise their right of information via an e-mail sent to junta.accionsitas@santander.com as of the date of the convening of the meeting.
• Separate voting on issues such as the appointment of directors and on articles or groups of articles that are substantially independent in the event of changes to the corporate By-laws or the regulations of the meeting, except voting on full texts of the By-laws or the board's regulations. It is also envisaged that at the 2011 shareholders' meeting the annual financial statements and the social management of the Bank and its consolidated group can be voted on under different items of the agenda, all regarding 2010.
• Delegation of the vote in anyone, whether they are a shareholder or not.
The Bank regularly calls meetings with an advance that exceeds the required 30 days and makes available to shareholders via the Group's website, and as of the date of publication of the convening, all the relevant information including the proposed agreements to be submitted to the meeting.
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CUSTOMERS
CUSTOMERS' PROFILE
Customers are the focal point of the Bank's activity. The focus on the customer and on service and striving for maximum satisfaction are the Group's priorities.
The number of Banco Santander customers has grown considerably in the last few years (doubling between 2004 and 2010). At the end of 2010, Santander had 97.2 million customers, distributed as follows: 41% in Latin America, 27% in the UK, 28% in the rest of Europe and 4% in the US.
TOTAL GROUP CUSTOMERS
TOTAL GROUP CUSTOMERS (Thousands)
Santander Branch Network 9,258 Banesto * 2,503 Openbank 418 Santander Totta 1,932 Total Continental Europe 14,111 Total US 1,654 Total United Kingdom 25,467 Brazil 24,757 Mexico 9,095 Chile 3.063 Argentina 2,277 Colombia 297 Puerto Rico 397 Uruguay 258 Total Latin America 40,144 Total private banking 177 Total global wholesale banking 33 Total Consumer Banking 15,643 Total Group customers 97,229 * This figure is not the same as the one published in Banesto's annual report as it is based on active customers and includes i-Banesto The business focus is the retail segment, as 99.7% of customers are involved in retail banking and consumer credit, Banco Santander has a wide range of financial products and services to satisfy customers' needs. The bank's hallmark, in all its markets, is anticipation and dynamism when launching new value offers. For example, in 2010, the Depósito Ganador in Spain, the Santander Zero account in the UK and the Conta Integrada for shops and companies in Brazil.
The Bank also creates products and services linked specifically to its commitment to the most vulnerable groups and to sustainable development.
CUSTOMERS BY COUNTRIES
%
DISTRIBUTION OF CUSTOMERS BY GEOGRAPHICAL AND BUSINESS AREAS
%
CLOSER TO CUSTOMERS
Lasting relations and of greater value added are generated and maintained in the branches. Santander has 14,082 branches, mainly distributed in its 10 core markets and which constitute the largest network of an international bank. The Bank also provides services via other channels that operate around-the-clock, such as online banking and telephone banking.
In 2010, Banco Santander stepped up its distribution capacity by 422 branches after opening new ones in high growth countries such as Brazil and Mexico. it also has a network of managers who receive continuous training so that they can inform customers transparently and rigorously and give them the best service. all of this helps to foster security and responsibility in the development of customer relations.
For Santander, it is vital to have full knowledge of its customers. To achieve this, it has the most advanced and innovative IT platform of any international retail bank, which enables it to offers customers the products and services that best meet their needs and tailored to the risk profile of each one, with innovation and technical rigour.
Banco Santander's commitment to innovation and new technologies is also underscored by its use of social networks as a new vehicle of communication and dialogue with its customers. The bank has an official presence, for example, in Twitter, Facebook and Youtube.
QUALITY OF SERVICE AND CUSTOMER SATISFACTION
Quality of service is a fundamental part of Banco Santander's strategy.
In order to ensure and promote continuously quality of service and customer satisfaction, the Bank has a corporate model of customers and quality (META 100), created in 2005.
The objectives of META 100 are:
• To reflect and contribute the customer's voice to businesses and other forums of the bank. For this, operational metrics of quality and customer perception have been defined, all of them with methodological rigour.
• To establish a culture of quality, whose main principles are service, confidence and proximity to the customer.
• Generate dynamics of continuous approval. Quality units have been created in various of the countries where the Group operates. They are interdisciplinary working groups, which analyse the metrics and identify the main drivers in order to foster possible improvement plans.
The corporate unit of customers and quality is responsible for monitoring the implementation and results of the model throughout the bank, as well as adapting it to different market conditions, in order to maximize customer satisfaction.
Santander has corporate strategies to boost customer satisfaction in all the countries and channels where it does business. Some 85.7% of customers said they were satisfied, generating greater linkage and loyalty.
During 2010, and due to the process of integrating banks in Brazil, a specific project was carried out in the sphere of the quality of service in this country. The aims were:
• To ensure that during the integration process the levels of service of the internal operating quality indicators were maintained, comparing them regularly with their referentes before the integration.
• To ensure that the levels of perception of quality of service provided to customers from both banks (Real and Santander) were maintained.
The methodology used was based mainly on an organizacional chart of indicators of operating quality and internal surveys of customers, which reflect the situation of the various spheres of service: availability of channels, levels of service in the call centre, transaction relations with customers, incidents and complaints, as well as conducting a benchmark survey in the market to identify the position regarding the bank's quality of service in its market, and the distance from its competitors. all of this under the permanent drive of senior management.
CUSTOMER SATISFACTION
CUSTOMER SATISFACTION % of active individual customers
INCIDENTS AND COMPLAINTS
Banco Santander has an innovative and advanced corporate model to manage incidents and complaints (MIRÓ). This enabled significant progress to be made during 2010 in managing customers' incidents and complaints., improving the speed of response as well as the clarity and transparency of the information provided to customers and the control and monitoring of them.
The main objectives of MIRÓ are:
• To gather and resolve quickly all complaints and incidents.
• Manage them in specialized units, maintaining fluid communication with customers.
• Identify and eliminate the main causes of dissatisfaction.
Santander Brazil stood out for its leadership position in service quality. It successfully completed in 2010 unification of the Santander brand and continued to advance in installing a single IT platform, which affected, as tends to be the case in this type of transition, the number of complaints.
As regards the UK, in January 2010 the commercial networks of Abbey, Alliance & Leicester and Bradford & Bingley were unified under the Santander brand and technological integration was achieved in record time. The change of perimeter and the full implementation of the corporate method for calculating complaints was reflected in an increase in the number of complaints. Under its commitment to enhance the quality of service, Santander UK launched a significant plan which is already bearing fruit: in the second half of 2010, the ratio of complaints for every 1,000 current accounts dropped to 5.0 from 7.6 in the first half.
COMPLAINTS
COMPLAINTS (% of active individual customers)
COMPLAINTS BY COUNTRIES
COMPLAINTS BY COUNTRIES (% clientes particulares activos satisfechos)
CORPORATE COMMITTEE OF MARKETING
Banco Santander attaches great importance to ensuring that its products are adapted to the risk profile of its customers and it monitors rigorously the various phases of their marketing.
To do this, it has corporate committee which ensures the product or service is adjusted to the framework where it will be sold. The corporate committee of marketing CCM), chaired by the Group's secretary general, pays particular attention to:
• Each product or service is sold by those who know how to sell it.
• The customer knows what he is investing it and the risk involved in each product or service and that this can be accredited in documentary form.
• Each product or service is adjusted to the customer's risk profile.
• Each product or service is sold where it can be sold, not only because they fit into each country's legal and tax regime, but also they are in line with the financial culture of the local population.
• When a product or service is sold, maximum distribution volumes are established. at the local level, there are marketing committees that present to the corporate committee the new products and their corresponding campaigns.
In 2010, 21 meetings of the corporate committee of marketing were held at which a total of 237 products and services were analysed (197 were new products/services submitted to the CCM and 40 to the local committee as they were not new products/services that fitted into that previously authorized by the CCM).
SUSTAINABILITY IN PRODUCTS AND SERVICES
Banco Santander has been creating for years products and services linked specifically to its commitment to the most vulnerable groups and to sustainable development.
Of note, among others, are:
MICRO CREDITS
Financial product that allows products and services to be made available to the least favoured and vulnerable groups in order to improve not only their quality of life but also that of their local environment.
In Argentina, Brazil, Chile and El Salvador, the Group finances the projects of more than 200,000 entrepreneurs. More information can be consulted on page 29 of this report.
PRODUCTS DESIGNED FOR STUDENTS
The Bank develops financial products and services for students with preferential conditions so that they can carry out their university studies, Of note are financing of training programmes and international travel, as well as university costs for books, transport and accommodation.
Santander is also increasingly implementing in university campuses the intelligent University Card (IUC), which accredits and enables students to access installations and conduct online procedures and borrow books. The card also acts as a public transport ticket and can be optionally linked to banking services, including ATM oper ations or with a debit card.
COOPERATION WITH NGOs
Santander provides products and services in cooperation with NGOs such as, among others, management of donations by internet which allows customers to contribute to non-profit making organisations quickly, comfortably and safely, while the institution has all the information on line of the operations conducted in this way.
The NGOs that participate in this initiative include the Red Cross, Unicef and Caritas.
PRODUCTS FOR IMMIGRANTS
The Group, via its branch network, offers in all its branches special products and services for immigrants.
Some examples are:
• Santander envios (remittances to more than 25 countries in the Americas, Africa and Europe).
• Banesto's Welcome programme which helps to integrate immigrants into the Spanish banking system.
SOCIALLY RESPONSIBLE INVESTMENT
Banco Santander is committed to developing socially responsible investment (SRI) products. It has various products with different profiles adjusted to customers' investment demands. These products not only meet financial return criteria but also social and environmental ones and recommended practices of corporate governance and transparency.
Banco Santander also has a portfolio management service which provides a personalised service for clients to administer their portfolios with SRI criteria. This service groups 13 portfolios, and the total volume managed in 2010 was EUR 38 million.
Santander is one of the founding partners of SPAINSIF, a multi sector association which aims to be the main reference in SRI in the Spanish market and in which are represented all the players in this sphere in Spain.
In 2010, Santander pensions Spain adhered to the United Nations' principles for Responsible investment (PRI). The pension plan for Santander's employees also signed the principles.
The PRI were created in order to help in long-term investment decisions, through better analysis of environmental, social and corporate governance criteria.
Banco Santander's experience in Spain in SRI began in 1995 with the creation of the first fund of this type and, in 2006, it pioneered the creation of a global SRi service for institutional mandates. Today, Santander manages in Spain three SRi funds aimed at all types of investors and more than 10 mandates for institutional clients, which involves more than EUR 125 million of assets administered with socially responsible criteria.
Santander Pensions took another step with the signing of the PRI and is creating an investment process that includes environmental, social and corporate governance analysis (ESG) as an assessment tool for any company in which pension funds could be invested.
Banco Santander's socially responsible investment funds include:
• Interactivo confianza FC (launched in 1995) and Santander responsabilidad conservador FI (launched in 2003): Ethical funds which invest on the basis of the values of the Catholic Church.
• Santander Solidario Dividendo Europa (launched in 1999): a fund which focuses on investments in companies committed to human, labour and social rights and respect for the environment. It assigns 21% of its management fee to the NGO chosen by the investor from among the 19 NGOs that make up the fund.
• Fundo de Investimento em Participações FIP Caixa Ambiental: Santander took over in 2010 management of the FIP Caixa ambiental. This fund with an investment capacity of EUR 172 million cooperates in developing infrastructure in Brazil. Its portfolio includes stakes in companies in the renewable energy, clean-up and environmental services sectors.
• Gestão de renda fixa: Santander asset Management innovated in 2010 by adopting socio-environmental criteria in its fixed-income and multi market portfolios in Brazil. This meant that the same criteria previously used to buy shares are now used when placing the debt securities of companies, such as bonds and other private credit instruments.
• Fundo Ethical Brasil: The first socially responsible investment fund in Latin America to invest in companies committed to applying environmental, social responsibility and corporate governance policies (managed volume of EUR 170 million). This fund will be 10 years old in 2011.
INDEX
- CUSTOMERS' PROFILE
- CLOSER TO CUSTOMERS
- QUALITY OF SERVICE AND CUSTOMER SATISFACTION
- INCIDENTS AND COMPLAINTS
- CORPORATE COMMITTEE OF MARKETING
- RETAIL BANKING SCHOOL
- SUSTAINABILITY IN PRODUCTS AND SERVICES
- SOCIALLY RESPONSIBLE INVESTMENT
COMMITMENT
The quality of customer service is a priority for the Group. We aim to continuously improve customer satisfaction and linkage via a wide range of products and services and the best quality service.
MAIN ACTIVITIES IN 2010
• Expansion of the global model of improvements in quality (META 100):
• — In Spain, throughout the commercial network, including the network of agents, in Internet and in cards.
— In Mexico, in the contact centres and in insurance.
— In the UK, in Internet and in cards.
• Consolidation of the corporate model for complaints (MIRÓ) in Santander Spain and its launch in Openbank and in the UK.
• The Retail Banking School shared all the Group's best practices in the sphere of quality of service.
• Improvement in the quality ratios of global insurance and payment means business.
OBJECTIVES IN 2011
• Install a governance model for the whole Group, which monitors quality with the involvement of senior management.
• Incorporate additional indicators of quality to the objectives and incentives in the business and support areas.
• Continuous development of the Group's best practices in the sphere of service quality.
• Creation of the post of brand customer experience manager to vouch for the coherence between the customer's experience and the brand promise.
• Commitment of the Santander brand to achieve in the medium term the average of its peer group in quality of service in the markets where it operates.
The customer is the main focus of Banco Santander's strategy
FIFTH ANNIVERSARY OF "WE WANT TO BE YOUR BANK"
The fifth anniversary of the launch of "We want to be your Bank" in Spain was celebrated in 2010. This plan eliminates commissions for customers. During this period, Santander took a big step forward in capturing and linking customers and multiplied by two the number of beneficiaries (almost 4.3 million in 2010).
This initiative was extended to other countries (e.g. the zero current account in the UK).
RETAIL BANKING SCHOOL
The Retail Banking School was launched in 2010. Its objective is to gather and structure the Group's profound knowledge of retail banking, identifying the best practices.
It has three very clear purposes which are of great strategic importance:
• Extend the best practices to all countries where the Group operates.
• Facilitate and speed up the process of adapting to and integrating the new acquisitions, as the team will have right from the start access to the Group's knowledge and best practices.
• Learn more about customers and tailoring products and services to their needs.
The school, which has the support and involvement of the Bank's senior executives, has great strategic importance.
During 2010, the models and practices of the countries which in a first phase are participating in the school (Argentina, Spain, with Santander and Banesto, Brazil, Chile, Mexico, Portugal and the UK) were codified. This information is already being used in order to find areas of opportunity for improving the Group's commercial banks.
Furthermore, in order to learn, know and share team experiences, Santander Learning, Banco Santander's corporate platform of training, created for the Retail Banking School 32 virtual communities. These new spaces strengthen communication and exchange of knowledge between professionals throughout the world.
UNITED NATIONS PRINCIPLES FOR RESPONSIBLE INVESTMENT
1. Incorporar las cuestiones ASG (*) en los procesos de análisis y adopción de decisiones en materia de inversiones.
2. Systematically incorporate ESG issues into our ownership policies and practices.
3. Seek appropriate disclosure on ESG issues by the entities in which we invest.
4. Promote acceptance and implementation of the principles within the investment industry.
5. Work together to enhance our effectiveness in implementing the principles.
6. Report on our activities and progress towards implementing the principles.
(*) ESG: environmental, social and corporate governance.
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EMPlOYEES
MANAGEMENT MODEL FOR PROFESSIONALS
Banco Santander has almost 180,000 professionals throughout the world. Its staff is multicultural and represents more than 95 nationalities.
Santander supports professional development, regardless of the gender of the person, their age, nationality, religion or beliefs.
In 2010, Santander progressed in applying its management model, focused on attracting, developing and committing itself to the best talent at the international level, in order to support the Group's leadership and sustainable growth in business.
This model is based on three main pillars: leadership with talent, knowledge and corporate culture.
EMPLOYEES BY INSTITUTION
EMPLOYEES BY INSTITUTION
LEADERSHIP WITH TALENT
Talent, for Banco Santander, is the combination of the capacity of its professionals, their aspiration to go far and their commitment to the bank. Santander strives to identify internal talent, attract external talent, ensure its development, commitment and assess and remunerate it.
Internal talent is identified by various ways such as the development and mobility committee, the process of evaluating performance and by the executives of countries and the members of their management committees.
The main objective of the development and mobility committee is to know in great detail the potential and talent of the Group's executives. The committee studies, rigorously and objectively, the profile of executives and proposes specific and personalised plans to foster each one's trajectory. The committee meets regularly and includes the participation of the CEO as well as division heads and senior executives.
Santander has various programmes to develop the talent of those with the greatest potential, promoting mobility and development of international careers.
• Santander Training Executive Programme (STEP). This is a corporate programme for the Group's future executives, in which 82 professionals participated in 2010. The programme lasts three years and enables participants to rotate different functions and work in various countries while receiving training.
• Mundo Santander programme. This initiative offers professionals the possibility of working in a Group country different to their own for four months. in 2010,156 employees benefited from this (347 in the last three editions).
• Atenea. First convening of the programme for technology and operation professionals.
• 20th edition of Futuros Directivos programme (FUDIS) of the americas division.
• Apolo, programme of the retail banking division in Spain, which held its sixth edition in 2010.
DISTRIBUTION OF EMPLOYEES
DISTRIBUTION OF EMPLOYEES
MOBILITY
MOBILITY
GENDER EQUALITY
Banco Santander's policy is to develop talent within the organisation, regardless of the person's gender. in Spain, this policy is carried out by the Avanzamos Juntos programme, which covers various initiatives:
• A corporate organisational chart of gender equality that includes indicators that measure compliance with the equality policy.
• An online training course on gender equality for 16,000 employees.
• Training sessions on gender equality as part of the corporate programmes for the Group's executives.
In Spain, the Alcanza plan strengthens women with talent through various initiatives:
• Engánchate programme, aimed at the new generations and which in 2010 had 86 participants.
• Impulsa programme to support the development of women with aspirations and skills and who today are in intermediate posts, in 2010, 30 women participated in this programme.
• Supera programme to give visibility to women with executive posts and facilitate their access to posts of maximum responsibility. Eighteen women were selected.
Among other actions, Santander Totta launched Red en Femenino, a communication platform for the bank's female executives.
In the UK, the bank created the Santander prize under the framework of the prestigious Opportunity now prizes to foster equality of opportunity. also noteworthy were specific plans for women developed by the bank in brazil and in the US.
PROMOTIONS
PROMOTIONS
BETTING ON KNOWLEDGE
Santander cuenta con un modelo propio de formación y conocimiento que persigue su consolidación como un referente internacional en este ámbito y es una de las palancas para su crecimiento y liderazgo. En 2010, Banco Santander ha invertido un total de 40 horas de formación por empleado.
The Retail banking Corporate School was launched in 2010 (see page 47). The governing body of this school is chaired by Banco Santander's CEO, and comprises members of the bank's senior management. This school joins the already existing corporate school of risks, which in 2010 was five years old.
Other notable developments were:
• Executive Private Banking Programme, for the Group's private banking professionals.
• GB&M Leadership Programme for executive teams of the Global banking & Markets division.
• First training programme in university policy.
Santander Learning, the corporate platform, has 47,000 users and more than 40 online communities. This innovative practice enables knowledge to be exchanged and shared among the Group's various training programmes, corporate schools and projects.
In 2010, the bank launched the programme, "leading the Group's Growth" for senior management. Three new editions were also held during the year of the cycle of conferences, "Ideas for Leading", which aims to share reflections on capacities and strategic issues beyond business.
EXECUTIVES' TRAINING PROGRAMMES
EXECUTIVES' TRAINING PROGRAMMES
Centre of executive development Collective Participants Leading the Group's growth Top Red 173 High return leadership Top Red 31 Strategic comunnication programme Top Red 6 Corporate programmeof strategic support Dir Red 419 Role of leader Dir Red 54 Corporate leadership programme Dir Red 25 Leadership in management and development of talent Dir Red 54 Communication Dir Red 47 Strategic finance in banking Dir Red 25 Strategic risk management Dir Red 92 Corporate development programme (CDP) Senior executives 28 STEP (Santander executive training programme) Young high potential 82 Social responsibility programme for a global Group Senior executives 27 Corporate managerial curriculum (CMC) Executives and future executives 1,392 Female executive challenge Female executives 213 Alcanza plan Female executives and future executives 137 Workshop for graduates Notables in future executive programmes 17 Cycle of conferences "Ideas for Leading" Executives and future executives 2,626 Programmme for future executives in the Americas Young high potential 90 Apolo programme Retail banking (Spain, Banco Santander) 30 Programme of development for executives of zona a+ Retail banking (Spain, Banco Santander) 29 Higher programme of executive development Senior executives, Spain 40 CORPORATE CULTURE
Banco Santander attaches great importance to having a corporate culture based on the Group's values.
The regular information that employees receive on the strategy and performance of businesses via Intranet, in-house magazines and web casts also contributes to the dissemination of messages and corporate culture.
Santander, moreover, has two specific programmes for transmitting and strengthening the corporate culture for its current and potential employees. They are "Santander is You" and "Santander can be You".
"SANTANDER IS YOU"
The objective of this programme is to foster the corporate culture and transmit the Group's values. It is a key initiative in a large international group such as Banco Santander, which incorporates to its teams people from different countries and cultures. In 2010, the Third "Santander is You" week was held, with the participation of the majority of employees in more than 300 activities related to solidarity, the environment, sports, health and welfare. They were held in the same week of the year in all countries where the Bank operates. The Second "Santander is You Race" was held in Chile with the participation of 60 Group professionals.
"SANTANDER CAN BE YOU"
In competition for the best talent, Santander also transits its corporate culture to potential employees via its "Santander can be You" programme. For the second year running, and in order to identify the best international talent, the Group visited the main business schools in the US, Europe and Asia, such as Harvard, MIT, Colombia, INSEAD, CEIBS and London Business School. Another way to identify and attract the best talent is through Santander talent scholarships. This initiative, in its third edition, selected 33 university graduates throughout the world and offered them full training adjusted to the needs of a retail bank.
CORPORATE VOLUNTEERING
Solidarity is increasingly forming part of the bank's corporate culture.
In 2010, Banco Santander's sustainability committee, approved a corporate volunteering plan to be launched in 2011. Its objective is to promote, together with Unicef, children's education in the countries where Santander operates, particularly in Latin America.
The programme will begin in Spain and be gradually extended to the rest of the countries where Santander operates. Over the next two years, professionals will support Unicef, through various volunteering initiatives in order to foster access to schools for children and teenagers with schooling problems.
GENERAL CODE OF CONDUCT
Santander incorporates ethics as part of its corporate culture and values.
This code has been communicated to all professionals and is available on the Group's intranet.
There is also a confidential communication channel, through which employees can bring to the bank's attention possible questionable practices in matters of accounting and auditing. Any employee can also denounce non-compliance with the general code of conduct.
SANTANDER AND HUMAN RIGHTS
Within the usual communication channels which the Bank maintains, no relevant incident regarding failure to comply with human rights was reported in 2010, nor were any activities detected which implied that the right of freedom of association and to adhere to collective agreements were at risk. Also, no incidents involving child exploitation or episodes of forced labour or without consent were identified.e han detectado actividades que impliquen que el derecho a la libertad de asociación y de acogerse a convenios colectivos corra riesgos. Tampoco se identificaron incidentes de explotación infantil ni episodios de trabajo forzado o no consentido.
The bank, moreover, provides employees with courses in corporate social responsibility including, among other things, specific training in human rights.
TRAINING
TRAINING
AVERAGE AGE OF EMPLOYEES
AVERAGE AGE OF EMPLOYEES
AVERAGE LENGTH OF TIME WITH SANTANDER
AVERAGE LENGTH OF TIME WITH SANTANDER
TYPES OF CONTRACTS
TYPES OF CONTRACTS
TYPES OF EMPLOYMENT
TYPES OF EMPLOYMENT
FLEXIBLE REMUNERATION PLAN
Santander has a total remuneration system which, as well as fixed remuneration, covers other concepts such as variable remuneration, and various benefits for professionals and their families, which vary depending on the country or society to which they belong.
In Spain, Santander's professionals saw their possibilities of optimising their fixed remuneration increased as a result of the new flexible plan, launched in 2010, which makes available to them products and services in advantageous conditions (computers, cheques for nurseries, medical insurance, etc). There are another initiatives within the framework of flexible remuneration, such as the Santander Passport, a benefits plan for employees and their families developed by Santander Colombia.
HUMAN CAPITAL INDICATORS
HUMAN CAPITAL INDICATORS
OCCUPATIONAL HEALTH AND SAFETY
Banco Santander has a corporate unit of health and prevention of risks at work, which oversees the safety of employees with the basic objective of reducing to the maximum the probability that any risk leads to an accident at work or a professional illness.
OCCUPATIONAL HEALTH AND SAFETY
OCCUPATIONAL HEALTH AND SAFETY
"SANTANDER POR TU CORAZÓN"
Banco Santander and the Botín Foundation sponsor the study on the progression of early subclinical atherosclerosis led by the National Council of Cardiovascular Research, a pioneering investigation in early identification of the risk of suffering cardiovascular illnesses, especially atherosclerosis, under the guidance of the well known cardiologist Valentín Fuster.
Under the slogan "Santander por tu corazón", Santander offers the more than 2,000 of its professionals between the ages of 40 and 54 who do not suffer from cardiovascular illnesses the possibility of participating in this research. The first tests, which began in June 2010, were made on 449 professionals. In 2011, latest generation machines will be installed to complete the study which will be conducted on employees over the course of nine years.
As well as representing a benefit for the Bank's employees, this study is making a significant contribution to research and generation of knowledge in the sphere of health sciences.
The programme includes:
• Cardiovascular assessment.
• Full analysis.
• Diet plan.
• Pautas de ejercicio adecuadas a cada paciente.
• The right exercise for each patient.
• Regular monitoring.
INDEX
- MANAGEMENT MODEL FOR PROFESSIONALS
- LEADERSHIP WITH TALENT
- BETTING ON KNOWLEDGE
- CORPORATE CULTURE
- FLEXIBLE REMUNERATION PLAN
- OCCUPATIONAL HEALTH AND SAFETY
COMMITMENT
To ensure the Bank's corporate policies attract, develop and commit the best talent at the international level.
MAIN ACTIVITIES IN 2010
• The new general code of conduct was put into effect.
• The corporate policy for gender equality was carried out.
• Leadership developed with programmes such as Liderando el crecimiento.
• Launch of the Retail Banking Corporate School which guarantees transfer of the Group's strategic knowledge.
• "Santander is You" consolidated as the channel to transmit corporate culture.
• EUR 103.4 million invested in training programmes, with 7 million hours and 179,372 participants.
OBJECTIVES IN 2011
• Launch the corporate volunteering programme.
• Extend the Great Place to Work study to Spain.
• Integrate Germany and Poland into the "Santander is You" programme.
• Improve the tool for collecting suggestions in Spain.
• Greater presence in social networks.
Santander fosters leadership with talent, knowledge and corporate culture, the three main elements of its management model for professionals.
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SUPPLIERS
PROFILE OF SUPPLIERS
Grupo Santander maintains stable relations with its suppliers based on ethics, transparency and mutual respect, thereby ensuring the quality and availability of the products and services.
Most of the contracts, in the main countries where the Group operates, include a declaration by the supplier committing them to respect and comply with the 10 principles of the United Nations Global Compact, which the Group adheres to, regarding human rights, labour regulations, protection of the environment and combating corruption and, to the extent of their possibilities, add value to the management of businesses.
Banco Santander, via Aquanima and Global Businesses, maintains commercial relations with 3,185 accredited suppliers, billing more than EUR 50,000 a year. Most of the suppliers (98%) are local (those with operations in the same geographical area where the purchase and invoice are made).
Of this volume, EUR 1,271 million was managed via the online platform (20% more than in 2009).
Banco Santander also continued to contract many of its services via special employment centres, at least 70% of whose employees are disabled by 33% or more. To achieve this, the offers of suppliers who can provide their service via this type of centre are evaluated alternatively.
MANAGEMENT OF SUPPLIERS
Aquanima is Banco Santander's purchasing unit. Its purpose is to select and negotiate with suppliers and incorporate all countries to the negotiating perimeter and to the accreditation processes established. Aquanima installed the management model for suppliers in Santander Totta during 2010 and continued to install the model in other Group companies.
COMMUNICATION CHANNELS
Banco Santander has a series of communication channels with suppliers in order to maintain a fluid and transparent relation and seek new ways to interact.
Of note among the new initiatives adopted in 2010 were:
• Banco Santander Totta held its first forum of suppliers at which the integral management of spending model was presented.
• Working breakfasts were held with suppliers on the Group's premises in order to know their needs and suggestions.
• A project was developed so that any communication with suppliers within a framework of negotiation is carried out electronically and via the platform used for this purpose, in order to continue to enhance transparency and communication in our processes. This began in 2010 and continues during 2011.
• Assistance as exhibitors at a fair in Mexico at which a console was prepared so that suppliers could register via the Aquanima portal, in order to increase the potential number of suppliers.
PURCHASES
Millon eurosManaGEMEnT aCCORDinG TO THE GlObal MODEl
VOlUME OF E-pURCHaSES ManaGED
INDEX
COMMITMENT
To ensure equality of opportunity, with the maximum transparency in the awarding of contracts.
MAIN ACTIVITIES IN 2010
• Development of the corporate model of integral management of spending and applying in the new countries.
• Launch of various initiatives to strengthen communication with suppliers.
• Aquanima was installed as the purchasing company at Santander Totta including the process of accrediting suppliers.
• Increase in the percentage of online negotiations.
• The pool of potential suppliers was optimised, respecting accreditation criteria.
OBJECTIVES IN 2011
• Continue to advance in installing Aquanima as the purchasing company and in accrediting suppliers.
• Establish a system for controlling compliance with the commitments assumed by suppliers in the protocols of corporate social responsibility.
• Extend the exchange of best practices in management of suppliers to the countries where the Bank operates.
• Incorporate new functions to the supplier portal that enhance communication channels with the Group.
Santander maintains with its suppliers a firm commitment to society and the environment
VOLUME MANAGED BY CATEGORY OF SPENDING
100%=EUR 3,625 million
MAIN SUPPLIERS
MAIN SUPPLIERS By amount
Spain Portugal United Kingdom Brazil Mexico Chile Rest Total < 50,000 € 67 101 56 364 119 275 197 1,179 > 50,000 € < 300,000 € 122 24 82 210 84 46 141 709 > 300,000 € < 1,000.000 € 54 10 70 105 41 14 60 354 > 1,000,000 € 112 14 51 153 24 12 64 430 Total 355 149 259 832 268 347 462 2,672