A summary of the speech delivered by Mike Pratt, Westpac Bank's Group Executive, Business and Consumer Banking, to the Communities in Control conference 2004.
Mike Pratt, Westpac Bank's Group Executive, Business and Consumer Banking, told conference delegates that the concepts of corporate responsibility, good governance and community investment were not "a brake on the creation of shareholder value" but were instead "increasingly central to its sustainable creation".
Mr Pratt spoke of his and Westpac's attitudes to corporate involvement in the community, corporate social responsibility and how corporate Australia could impact positively on local communities. He said one of the main triggers that had made corporate involvement and corporate responsibility vital had been a shift in power through the past two decades.
"Until as recently as the late 1980s, the biggest player in the national arena was, of course, government. The Federal Government had direct ownership of many companies," he said.
"Australian companies were heavily fettered and constrained. Business was always there, and important, but operated in a very tightly controlled and regulated space in national life. Australian business campaigned vigorously for greater freedom and given the generally strong case had great success. Over the past twenty years we've seen massive economic and social change, with the role of government progressively reduced through deregulation and selling off the government owned enterprises.
"Power that used to reside largely in central governments is now widely dispersed through both business and non-government organisations…. as a result, the role of business has dramatically expanded, with far greater freedom to operate and influence societal outcomes.
"Equally important, however, has been the withdrawal of government from centre stage, with both sides of politics asking individual Australians to take on new responsibilities. Today, we are all expected to embrace a more mature form of citizenship - one in which reciprocal obligation is a well-entrenched idea.
"There is no question that society is becoming less paternalistic and more individualistic. Individual good seems to be taking precedence over the common good. And there's more change and uncertainty. Jobs are for now, not for life. And in the suburbs and the regions, too many people are feeling excluded.
"Most people don't like the sense of powerlessness that this brings and the signs are everywhere. What's more, people are making their feelings known."
Mr Pratt said this meant more people were demanding more accountability and empathy from business – a style of leadership that blends compassion with competitiveness. And he said while some big businesses were unable or unwilling to do this, many others were heeding the community's calls – calls that are only going to strengthen.
"It seems to me that any rational business-person must surely understand that national economic and social prosperity are intimately entwined: that it is in the direct interests of business to make its fair contribution to the overall well being of our society," he said.
"At the end of the day, in any sustainable civil society, I don't believe there can be rights without responsibilities. And frankly, whatever the private view of some business leaders, business is going to have no choice in this matter. The community can and will punish organisations that fail to meet modern expectations.
"And here's the important thing. Based on our experience, leading beyond the walls in doing the right thing and contributing to genuine community building does not require a trade off in competitiveness or in financial performance."
Mr Pratt also cited a number of ways Westpac was involved in the community, including:
- Fee-free banking accounts for many in the community, as well as a moratorium on branch closures in regional, rural and metropolitan areas.
- Supporting the Westpac Rescue Helicopters for the past 30 years – with a partnership with the Victorian Surf Life Saver Association seeing that service extended into Victoria this year - as well as a 33-year partnership with the Salvation Army.
- Westpac's new partnership with ourcommunity (www.ourcommunity.com.au) – Community Solutions – encompassing banking solutions for not-for-profit groups, and.
- Its work in the Indigenous Enterprise Partnership in Cape York, which has aimed to foster self-sufficiency among indigenous communities.