Approach

Stakeholder Engagement

RBC's major stakeholders are: clients, investors/shareholders, employees, suppliers, government, communities and non-governmental organizations (NGOs). We consult stakeholders on environmental issues. Some examples of the impact of our stakeholder consultation are cited below.

We considered stakeholder interests and industry best practices when we mapped out the RBC Blueprint for Doing Better™.

Satisfaction surveys

RBC regularly surveys clients, employees, government representatives, media and shareholders. RBC is a member of the Canadian Bankers Association, which does regular surveys of interest groups such as consumer organizations. We also participate in ongoing (monthly) media tracking, studies, assessing positive, negative and neutral coverage of RBC, and our major Canadian competitors.

Clients

RBC encourages clients to tell us what they think, so we can evaluate how well we are earning the right to be their first choice. Each RBC business tracks client satisfaction as a key measure of performance and uses feedback to make improvements. We record problems noted by clients in a central database, and we interview a sampling directly to find out how well their issue was resolved.

Client feedback is obtained in a number of formal and informal ways to support the development of high calibre client, marketing and channel strategies. We conduct Customer Satisfaction and Loyalty surveys and report results quarterly. Feedback/input from our Client Relations Centre and Office of the Ombudsman is also used to improve our products and services. All issues are tracked to ensure that systemic problems are corrected.

RBC uses the following methods to solicit and integrate feedback from our clients:

• Harmonized CRM database at business unit level;
  
• Company-wide customer database, including marketing and customer service history;
  
• Web-based, harmonized feedback channels;
  
• Integration of feedback into product/services development;
  
• Dedicated 24/7 call centre for complaints;
  
• Customers' complaints feedback to compliance officers and/or risk managers and/or communication officers
  
• We produce consumer education materials on "how to make a complaint" to RBC, available in our Canadian branches and online.
  
• New product offerings are tested with clients through focus groups and selected live "test and learn" opportunities. One example is the creation of RBC's student banking package and cross-border banking services (for Canadians living or working in the USA). Clients were engaged for input to RBC's new credit application process for small business, and a new mortgage product for self-employed clients.

We generally use third party suppliers to administer both our external market benchmarking surveys as well as our internally designed surveys to our customers.

We also use information gained through annual public opinion surveys. to develop product and client strategies.

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Investors

The Head of Investor Relations regularly tracks analyst research coverage and sounds out analysts and institutional investors on what they perceive as the strengths and weaknesses of the company and communicates that informally to the appropriate members of RBC's Group Executive Committee (senior management team of company.)

Research reports on RBC are circulated to the Board of Directors and the Head of Investor Relations summarizes analyst sentiment on quarterly earnings performance for the Board of Directors.

RBC periodically engages an outside firm to conduct detailed perception studies.

We meet with shareholders regularly, on both an individual and group basis, as well as in-person in our annual general meeting. Feedback from analysts and investors is taken into consideration as we formulate our strategy and priorities.

We communicate with all our stakeholders, including analysts and investors, in a variety of ways, including through our quarterly earnings statements, Annual Report, through various sites on our external website (Environment, Investor Relations, Corporate Responsibility, Corporate Governance, and Media Newsroom) , and through our annual Corporate Responsibility Report and Public Accountability Statement.

We regularly provide information to Canadian and international SRI research firms for the creation of their indices, ratings and rankings for analysts and SRI investors. RBC is included in a number of Sustainability Reporting Investments (SRI) indices, such as the Dow Jones Sustainability index, the FTSE4Good index, and the Jantzi Social Index.

Employees

RBC has conducted comprehensive, annual employee opinion surveys since the late 1980s, covering the following areas:

• Reward and recognition
  
• Leadership
  
• Supportive/collaborative team environment
  
• Personal development possibilities
  
• Job satisfaction/opportunity to make a difference
  
• Working environment (Health and safety, social climate, etc.)
  
• Identification with corporate values and strategy

Each year, we survey at least 10 per cent of our employees, with our full employee population surveyed every three-five years. Census surveys achieve a response rate of approximately 80 per cent of employees.

The annual survey is based on a comprehensive engagement model, which we have subsequently linked to client loyalty and financial performance to demonstrate the value chain relative to employee engagement. On an annual basis we look at our engagement scores and the drivers of engagement (across approximately 100 items), including trend analysis and external benchmarking and develop action plans to address any gaps or emerging issues identified. Results are presented to senior executive management, to the Board of Directors and to individual unit managers, but are not disclosed outside of RBC.

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Suppliers

Our relations with suppliers are governed by Service Level Agreements and quarterly reports providing information on customer service and service delivery standards.

Governments

RBC has ongoing relationships with local, provincial and federal governments. Regional public relations managers and representatives also engage with local elected officials at the community level. At present, we advocate on a broad range of issues from taxation, agriculture, consumer issues, employment and training, environment, financial institutions, industry, internal trade, small business, securities regulation, financial sector policy and competition policy.

On occasion, we make our positions on key issues publicly available though this website or through industry association websites, such as the Canadian Banking Association. For example, in 2007, we presented to the Standing Committee on Finance regarding bank machine service fees. View our submission.

Canada's Lobbyist Registration Act requires us to report on our lobbying activities as well as those who engage in advocacy on our behalf. We are required to file a report every six months about the issues in which we are engaged, under the President and CEO's signature, listing our employees and consultants who are in regular contact with government officials, and the topics discussed We are awaiting details on the Canadian federal government's new Federal Accountability Act, which will set out changes to rules for those engaged in advocacy and lobbying.

Environment

Our environmental stakeholder engagement is not formal but it does take place. For example,

• In 2006, RBC engaged the Canadian Boreal Initiative, the World Wildlife Federation, Forest Ethics and the Rainforest Action Network to better understand the climate change issue and its potential impact on our lending policies and operational procedures. We will release a revised environmental policy in 2007.
  
  
• We are engaged with federal government departments such as the Ministry of Natural Resources and Environment Canada on issues like climate change.
  
  
• RBC is represented on the Canadian Brownfield Network as an advisory panel member. The network's goal is to accelerate redevelopment and urban revitalization across Canada. A brownfield is an abandoned, idle or underutilized commercial or industrial property usually in an urban area where past actions have caused, or are suspected to have caused, environmental contamination. Brownfield redevelopment results in the revitalization of communities through increased economic productivity, increased tax revenue, lower municipal infrastructure costs, reduced health risks and improved neighbourhoods.
  
  
• Through the Canadian Banker's Association (CBA), RBC participates on the Environmental Issues Specialty Group (EISG). The EISG acts as an informal environmental advisor to government officials, policy makers, and working groups.
  
  
• As an Equator Principles signatory, we participate with the World Bank and the IFC on developing standards for project finance, and responding to the concerns of NGOs.
  
  
• In 2006, RBC met with the Ethical Funds Company, the Canadian Boreal Initiative and the World Wildlife Federation to better understand the climate change issue and its potential impact on our lending policies and operational procedures.
  
  
• In February, 2005, RBC hosted "Canada Local Canada Global: The Environment, Society and the Canadian Financial Sector", a meeting of financial institutions, stakeholders and interest groups to understand risks and act on opportunities in the finance and environment area. In addition to representatives from Canada's major financial institutions, also attending were representatives from UNEP Finance Initiative, Environment Canada, the Department of Finance, Innovest, the Conference Board of Canada, The Globe Foundation and the National Roundtable on the Environment and the Economy.

We encourage clients and the public to contact us with inquiries or concerns.

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Impact of stakeholder engagement

RBC engages stakeholders on a regular basis to improve our products and services, and to enhance our reputation and leadership position. For example:

• We engage governments on matters that go beyond the operations of our business. For instance, in 2006 we met with Canada's Department of Citizenship and Immigration to review public education programs on the integration of immigrants into Canadian society.
  
  

• RBC is a member of the Prime Minister's National Task Force Capital Markets, the Environment and the Economy. The task force released a major report in 2007 regarding the integration of ESG factors into investments, making some public policy recommendations.

• In Canada, RBC has partnered with NGOs serving the low-income community to develop products and services focused on financial inclusion, such as banking services for low-income Canadians (with St. Christopher House), Individual Development Accounts (with federal government department of Human Resources and Skills Development and NGO SEDI), and our on-reserve banking outlets in partnership with First Nations communities.
  
  
• A Financial Literacy Roundtable involving four federal government departments, community/consumer advocacy groups, educators, etc.;
  
  
• RBC is a member of the scoping meetings for the Capital Markets Program of the National Roundtable on the Environment and the Economy (NRTEE) bringing together representatives from major federal government ministries, the non-profit sector, academic and private sectors.
  
  
• Programs, products and services developed in partnership with Government and NGOs:
  
  • Cash & Save: (neighbourhood financial services outlet offering low-cost basic banking services, 2 locations);
    
    
  • Learn$ave: (a modified savings account for low-income Canadians, 15 locations across Canada);
    
    
  • On Reserve Housing Loans for First Nations clients who are prohibited by law from holding traditional mortgages.
    
    
  • After School Grants (47); Financial LifeSkills Program/Seminars, "There's Something About Money" financial management seminars with Members of Parliament (Canada).
• RBC is a member of municipally-sponsored projects across North America, such as the Toronto City Summit Alliance, to help ensure Toronto's prosperity as the engine of Canada's economy.
  

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