Scotiabank Analysis
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Company Introduction
Scotiabank is classified in the Canadian banking industry and other banking industries worldwide. The Canadian banking industry is comprised of 13 domestic banks, 34 foreign bank subsidiaries, and 11 foreign bank branches operating in Canada (Department of Finance Canada, 2001). In recent times, the banking industry has become unstable as a result of the US subprime crisis and Canadian banks have not been immune. Since the second half of 2007, major central banks injected record amounts of cash to calm the credit markets and prevent a complete meltdown in the financial system (Mergent Inc., 2008).
Since its incorporation in 1832, Scotiabank has risen to be Canada’s most international bank and one of North America’s leading financial institutions (Mint Global, 2008). Through a team of over 69,000 employees, the Bank and its affiliates offer a broad range of products and services, including personal, commercial, corporate, and investment banking, to more than 12.5 million customers in some 50 countries around the world (Scotiabank Annual Report, 2008).
Scotiabank has many stakeholders, the two primary ones are the shareholders and employees. The main concerns of the Bank’s employees include a healthy work environment, competitive compensation, and equality in the workplace. In order to address these issues, Scotiabank Group developed the Scotiabank Chain of Communication. This set of guidelines provides an outlet for employees to address their concerns without fear of retaliatory actions against them (Scotiabank, n.d.). For example, as a result of compensation concerns, the Bank has now changed its reward policy towards employees to include incentive pay, employee share ownership, pension plans, and employee benefits (Scotiabank, n.d.). Respecting diversity and keeping its employees content, Scotiabank develop a competitive advantage in the industry.
Shareholders comprise Scotiabank’s second stakeholder group. Their primary concerns...
Scotiabank is classified in the Canadian banking industry and other banking industries worldwide. The Canadian banking industry is comprised of 13 domestic banks, 34 foreign bank subsidiaries, and 11 foreign bank branches operating in Canada (Department of Finance Canada, 2001). In recent times, the banking industry has become unstable as a result of the US subprime crisis and Canadian banks have not been immune. Since the second half of 2007, major central banks injected record amounts of cash to calm the credit markets and prevent a complete meltdown in the financial system (Mergent Inc., 2008).
Since its incorporation in 1832, Scotiabank has risen to be Canada’s most international bank and one of North America’s leading financial institutions (Mint Global, 2008). Through a team of over 69,000 employees, the Bank and its affiliates offer a broad range of products and services, including personal, commercial, corporate, and investment banking, to more than 12.5 million customers in some 50 countries around the world (Scotiabank Annual Report, 2008).
Scotiabank has many stakeholders, the two primary ones are the shareholders and employees. The main concerns of the Bank’s employees include a healthy work environment, competitive compensation, and equality in the workplace. In order to address these issues, Scotiabank Group developed the Scotiabank Chain of Communication. This set of guidelines provides an outlet for employees to address their concerns without fear of retaliatory actions against them (Scotiabank, n.d.). For example, as a result of compensation concerns, the Bank has now changed its reward policy towards employees to include incentive pay, employee share ownership, pension plans, and employee benefits (Scotiabank, n.d.). Respecting diversity and keeping its employees content, Scotiabank develop a competitive advantage in the industry.
Shareholders comprise Scotiabank’s second stakeholder group. Their primary concerns...