Banco Real: Banking on Sustainability

1449 Words6 Pages
Problem Statement In 1998, BANCO REAL, a Brazilian bank, was acquired by ABN AMRO S.A., which was a Brazilian subsidiary of a Dutch multi-national financial holding company. At that time they had to decide what would be the direction given to the new company and what would be its new identity. The selected theme was “value creation” fostering a new model of growth aiming at satisfying both customers and specific ethical and environmental standards. From that point, the bank has undertaken several projects aiming at complying with these new social, ethical and environmental goals. To act in this field, A “Bank of value” was created in 2000. For the five next years it has grown conducting several projects, including both internal mutations and business innovations. These projects included social missions such as Micro-finance, the creation of an ethical mutual fund or World Bank loans distribution. But also environmental projects such as implementing the 3 R’s in the company (reduce, re-use and recycle) or offering socio-environmental financial products. Nowadays, Banco Real is considered as a leading bank company in the social field. Its main competitors such as Itaù even started marketing campaign along the same lines. Today Banco Real managers have to make an assessment of the situation, taking into account the previous years and actions. The main issues are the sustainability of the model and its ability to face possible economic difficulties. In this respect, several questions are at stake: Should Banco Real pursue its strategy or should make some improvements? Should it keep all those different activities or concentrate its efforts on some particular field of sustainable development? Are the company and its employees ready to go further in this course of actions? Analysis of the situation (that supports the problem solving process) Considering strategic

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