RELEVANT
ISSUES Implications of the current crisis
Responsible
management of human
resources
Responsible
procurement
Environmental
management and
climate change
Community
involvement
SENSITIVE
ISSUES IN 2008
The economic downturn is also causing a severe level of job loss. This places still greater
importance on those measures aimed at worker employability, as well as those related to
business restructuring. The crisis could also lead to cuts in social benefits. These farreaching
changes in the employment environment may, in turn, set off more labour
disputes.
We can expect employees to increase their information demands in the face of greater
uncertainty.
Corporate culture and values take on greater relevance in the context of greater operative
difficulties employees may face.
Finally, due to the origins of the financial crisis, there is an increasing demand for linking senior
management’s remuneration to long-term objectives.
The business sector is undergoing serious difficulties, increasing suppliers’ vulnerability to
possible cuts in billing and more demanding contracting terms.
Similarly, there is greater risk that the search for lower prices could result in decreased efforts
at supplier endorsement in terms of sustainability criteria.
The social emergencies set off by the crisis have also led to decreased receptivity on
the part of the general population to environmental protection. Moreover, the severity
of the crisis is heightening pressure to postpone measures directed against
climate change.
Community investment may be affected by budget cuts in social development projects. This
possibility contrasts with increased social needs that specifically call for the kind of community
investment that focuses on urgent issues arising from the crisis.
International organisations and society in general, are calling for greater participation on the part
of finance entities in the task of educating the public on financial matters.
The year 2008 marked an
extraordinarily difficult
period for the global
economy and a highly sensitive one for the
financial sector’s relations with society at large.
BBVA wishes to reinforce the confidence of its
stakeholders by addressing some of the issues
surrounding the Group’s activity during the year
and clarifying its role in and its position on these
matters.
In October the Spanish Congress approved a
raft of measures put forward by the government to
help combat the crisis. These included a support
plan for the financial sector, intended to restore
liquidity in the system. Specifically, the plan
created a fund to buy top-quality assets from
Spanish banks, but it did not seek to provide direct
aid by injecting capital, as has happened in some
other countries. The financial crisis has led to a
shortage of credit for businesses and households
alike. BBVA, however, has continued to offer
loans, opting for a model based on transparency,
prudent risk management and a long-term
relationship with its clients. More information
on this highly relevant issue can be found in the
chapter on Customer Focus.
In December 2008, the case of Bernard L.
Madoff Investment Securities and its involvement
in an alleged $50 billion investor fraud through
a financial pyramid scheme hit the front pages
of newspapers around the world. In response to
the resulting market uncertainty, BBVA sent a
communiqué to the Spanish Securities and
Investment Board (CNMV), stating that BBVA
had no direct investments in Madoff Investment
Securities, nor had it traded on behalf of its retail
or private banking customers in products managed
or deposited at the company. Any losses caused to
STAKEHOLDER ENGAGEMENT
Corporate Responsibility Report 2008
19
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