Corporate Governance and Corporate Social Responsibility Report

Transcription

1 Corporate Governance and Corporate Social Responsibility Report

2 Our mission Bci defines itself as a Financial Solutions Corporation that participates in all financial activities and operations permitted by the General Banking Law, offering the community products and services with highly-efficient operating processes and excellence in quality, with constant technological innovation, prudent risk-management policies and demanding ethical standards that have to be respected by everyone working in its companies. In this scenario and in order to meet its objectives and policies, the Corporation commits to ensure that these are met, with special emphasis on what it considers to be its four fundamental pillars: The Shareholders Business policies and decisions should always be designed to increase the capital that the shareholders have invested in the company, striving to ensure that the return on their investment is higher than the average for the banking sector, accompanied by normal levels of risk for the Corporation s businesses and with a maximum possible level of transparency in its conduct in line with the prevailing law, regulations and ethical framework. Customers and Suppliers The products and services that the Bci companies offer their customers should be of optimum quality, at competitive prices, innovative and to meet their needs properly and promptly. It should always be remembered that the customers are the basis of the Institution s success and commercial relations with them should therefore be maintained with a long-term perspective. Mutually beneficial relations should be maintained with suppliers accompanied by loyalty over time and high standards of quality, compliance and transparency. Staff and their Families The Corporation should endeavor to ensure that all its staff have a dignified standard of living, stable work and possibilities for personal, professional and family development, properly motivating and rewarding good performance and individual and team effort, while providing the guidelines and regulations for maintaining a working atmosphere of excellence and demanding professional and ethical behavior. The Corporation is defined as a family-responsible company in terms of its commitment to strive to ensure that staff work is carried out in conditions compatible with a proper personal and family life. Society The commitment of the Corporation is to develop its businesses and activities within the framework of governing laws in the country and abroad, wherever it does business. It will abide in full by the ethical principles that ensure respect for the rights and interests of others, according to the guidelines established and accepted by society. As an enterprise, it is also interested in contributing effectively to maintaining a healthy environment and enhancing the social, cultural and economic heritage of the nation by supporting relevant initiatives. The Corporation is fully aware of social responsibility that it has as a company.

3 Report on Corporate Governance and CSR We aspire to be leaders in innovation, proximity and customer satisfaction and be recognized as the best company for selfdevelopment and to work for

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5 00. Contents Report on Corporate Governance and CSR Letter from the Chairman Scope of the report Tagets 2007 & commitments Profile Corporate Social Responsibility in Bci Corporate governance & ethics Quality of working life Customers & suppliers Commitment with the community The environment Economic performance Global Reporting Initiative Index & Global Compact 100

6 01. Letter from the Chairman

7 Report on Corporate Governance and CSR This report, which we are pleased to share with our stakeholders for the fourth year, is another step in the culture of permanent innovation with which Bci seeks to characterize itself in the area of Corporate Social Responsibility (CSR). Through it, we wish to show the way in which we relate to all our stakeholders: shareholders, staff and their families, customers, suppliers and communities. This desire explains the new structure of the document that you have in your hands and which includes the six areas of action of our CSR strategy: corporate governance, ethics, quality of working life, commitment with the community, customers and suppliers and the environment. In each of these areas of action, Bci tries to put into practice the principles that are a characteristic of its form of operating and on which our 70 years of solid corporate reputation is based. Those are the pillars contained in our framework of values that defines the limits and areas in which our institution wishes to operate and permits providing a clear north for the whole Corporation in relation to the form of action that we should always respect as a company. During 2007, we have perfected our internal corporate governance policies, creating new directors committees to enable their members to be better informed about the daily progress of the Company s business. We have also established a new policy for suppliers that seeks to institutionalize our relations of respect and mutual collaboration with this important stakeholder and which has been complemented with a continual process of measuring their levels of satisfaction. As has been a constant in recent years, we have increased the benefits of the social network enjoyed by our staff, like the cases of the programs I want you protected and Gradual return following post-natal leave, that seek to provide a dignified quality of life to the Company s employees and their families. In the same way, we have continued our programs directed to small and medium enterprises in Chile, always counting on the voluntary support of our staff, as Bci is proud to be able to say that we have a common spirit that enables us to carry out our corporate social responsibilities at all levels of the Corporation also saw the start of our alliance with Fundación Las Rosas. This commitment seeks to project the Corporation s help and, very especially, that of its staff. Concrete initiatives and programs of mutual benefit have therefore been established, whose beginning has been highly successful. As we also wish to contribute to maintaining a healthy environment, we have begun an environmental care program that promotes in our staff the efficient use of electricity, water and paper in Bci s offices. We in Bci want to continue being a company in which the internal culture permits and motivates everyone to comply with the values framework and the mission that we have set out. We have therefore tried to create incentives so that every member of the staff can be part of this aspiration. We can say with satisfaction that those who contribute in their daily work to the success of this Corporation are clear about the principles that it wishes to preserve and know the means by which the Bank provides to put these into practice. Cordially, Luis Enrique Yarur Rey Chairman

8 Scope of the report This fourth Report on Corporate Governance and Corporate Social Responsibility, which Bci publishes annually, covers its social, environmental and economic performance in the year 2007 by all its businesses, except where stated otherwise. In its preparation, we have taken into account the indicators contained in the guide of the Global Reporting Initiative (GRI), version G3, published in October 2006, for the preparation of annual sustainability reports. We have also considered for the first time the indicators of the Financial Services Sector - Social Performance supplement (November 2002). The report is also intended to provide a suitable account of compliance with the principles of the United Nations Global Compact. Information on previous years is included in the cases in which it is expressly reported and where it is relevant. In order to meet the principles referring to the definition of the contents, as in the principles of relevance / materiality and the sustainability context of the GRI standard indicate, the performance indicators were selected based on an internal exercise at inter-managerial level which revised and chose the most important aspects. In the preparation of this report, we had the support of an external consultant specialized in GRI guidelines who was responsible for ensuring the quality, comparison and checking of the information. It was also possible to document the targets for the following year through this work. The technical data and calculations made for preparing each quantitative indicator of economic, social and environmental performance are based on procedures recognized by national regulations and correspond to standards accepted by the international community. This year, most of the graphs and tables include information on Banco Nova, in contrast to When this information is excluded, this is made explicit, as also in the case of information on Proservice. 1

9 Report on Corporate Governance and CSR Bci completed seventy years of existence, consolidating a valuable record of progress and innovations for its customers. The financial information of the Bci Corporation is expressed in Chilean pesos, except where indicated to the contrary, and is covered more extensively in the Annual Report distributed by Bci, which has been provided for four years now together with this report. This information is audited by PricewaterhouseCoopers. This year we have printed 4,000 copies of this report in Spanish and 500 in English, which will be sent to our principal stakeholders. In order to ensure access to the information, this and the reports for previous years can be found on the Company s web site (

10 03. Targets 2007 and commitments 2008 Area Target 2007 Performance Target 2008 Corporate Governance Manage the Bank s business based on continuous improvement, transparency & involvement in the management Met 100%. Creation of Directors Finance & Corporate Risk Committee. Continue advancing in management transparency & involvement. Creation of Directors Compensations Committee. Corporate Ethics Develop campaign directed to all staff setting out the ethical contents. Met 100%: ethics campaign What do I do?. Carry out internal campaign for maintaining ethical contents. Make study of ethical values to establish to what degree Bci has incorporated ethical principles in its management. Met 100%: Fundación Generación Empresarial jointly with Gemenis Consultores made a study of ethical values in the industry. Quality of Working Life Keep Bci among the best companies to work for in Chile. Develop & carry out internal survey of staff benefits. Gather, coordinate & articulate programs & benefits for staff & their families. Bci was placed 21st out of 35 companies in the Great Place to Work ranking. Met 100%. Met 100%: implementation of the Bci with you benefits program. Be among the best companies to work for in Chile. Generate & extend cover of new agreements to the regions. Implement 100% of the internal communications plan for positioning the Bci with you benefits program. Be the company with the best accident frequency rate in the banking industry. Met 100%: Bci obtained first place among the banks, with the lowest occupational accident frequency indicator. Remain among the best three companies in terms of the lowest occupational accident frequency indicator. Achieve an accident rate of below 1.25%. (No. of accidents/ average number of employees in year). Customers Advance in transparency with customers. Improve quality of service indicators. Met 100%: publication of the manual Our commitments to you, Bci at the service of its customers. Creation & redefinition of monitoring mechanisms of the level of customer satisfaction. 45% of customers surveyed in the year gave a mark of 7 (out of 7) for the service provided by Bci. Lead in quality of service in preferred businesses. Take advantage of extension of banking to provide access to micro-businesses. Innovate in new products & services that make life easier for our customers. Innovate in new products & services that make life easier for our customers. Met 100%. Launch of eight new products & services that make life easier for our customers.

11 Report on Corporate Governance and CSR Area Target 2007 Performance Target 2008 Suppliers Prepare & approve the Corporate Procurement & Suppliers Policy. Evaluation criteria. Introduce a web page for suppliers. Develop & implement a Quality of Services to Suppliers survey. Met 100%. Met 100%. Met 100%. Incorporate CSR criteria in the evaluation & choice of suppliers. Introduce the Listen to Suppliers program. Implement an improvement plan, according to the weakest points raised in the Quality of Service to Suppliers survey & evaluate them in the next opinion survey. Community Launch alliance with Fundación Las Rosas. Met 100%. Consolidate the alliance with Fundación Las Rosas. Implement a program of guided visits to the Art Collection of Chilean Artists. Define a support project for the care & conservation of the environment in Chile. Met 100%. Met 100%: a conservation & environmental education project was developed in the Pan de Azúcar National Park. Implement corporate volunteers program. Implement the conservation & improvement project in Pan de Azúcar National Park. The Environment Reduce consumption of water, energy and paper by 10% in every office of Bci. Paper consumption was reduced by13%. Energy & water consumption did not reach the target reduction of 10% in all offices, but the branches in the Antofagasta Region beat the target & managed a reduction of 18%. Maintain the Wake up program for the continued reduction in consumption of water, electricity & paper, & the recycling of paper in offices in Chile. Prepare & introduce a policy of electronic recycling. Increase by 10% the weight of recycled paper in the Metropolitan Region. Carry out an internal campaign creating awareness of care for the environment. Met 100%. Met 100%: implementation of the environmental care campaign Wake up, the environment is in your hands. Extend the environmental care campaign Wake up, the environment is in your hands to Bci customers. Begin a feasibility study for adhering to the principles of Ecuador 2. Introduce a program for recycling plastics & edible oil waste of the canteen suppliers in the Metropolitan Region. Met 100%: program for recycling plastics & edible oil waste of the canteen suppliers in the Metropolitan Region was implemented. 2 The principles in Ecuador are a series of guidelines prepared and assumed voluntarily by the banks for managing social and envitonmental matters related to the financing of development projets. (

12 04. Profile Our company Banco de Crédito e Inversiones opened its doors to the public on June 10, 1937, after being authorized by Ministry of Finance Decree 1683 of May 7, It was constituted as a banking corporation and its principal objective was to attend the country s productive sector, focusing mainly on small businesses and family work. 70 years later, its management and innovative capacity have kept it as one of the country s most important financial entities, becoming the third largest private-sector bank in Chile, with consolidated assets of Ch$10,679,305 million as of December 31, The Bci Corporation currently employs 9,541 people, of which 6,251 work in the Bank and 3,290 in its subsidiary companies. In 2007, Bci served around 1,200,000 customers and responded to the interests of an average of 2,300 shareholders. The Company has a network of 273 banking services offices in the country, from Arica in the north to Villa Las Estrellas in the Antarctic. Abroad, it operates a branch in Miami, representative offices in Mexico City, Lima, Sao Paulo and Hong Kong and a business agent in Madrid in a strategic alliance with Banco Popular Español. Specific business units: Corporate, Companies & Real Estate Banking Retail Banking Businesses Banking Mass Banking Finance & International Internet Banking Bci Inversiones Leasing Subsidiary companies: Bci Asesoría Financiera S.A. Bci Corredor de Bolsa S.A. Bci Corredores de Seguros S.A. Bci Administradora de Fondos Mutuos S.A. Bci Factoring S.A. Bci Securitizadora S.A. Compañía de Normalización de Créditos, Normaliza S.A. Análisis y Servicios S.A. Bci Administradora General de Fondos S.A. Bci offers its customers a wide range of credit, savings and investment services, providing them with all kinds of financial products oriented to individuals, business people, small and medium enterprises, and large corporations and institutions. The Bank s customers have access to products through both the commercial line and branch network, and the web site ( telephonic platform and other remote channels.

13 Report on Corporate Governance and CSR Memberships and voluntary agreements Bci forms part of the following entities: Asociación de Bancos e Instituciones Financieras (ABIF) Asociación de Exportadores de Manufactura y Servicios (Asexma) Asociación de Exportadores de Chile (Asoex) Cámara de Comercio de Santiago Cámara Chilena de la Construcción Cámara Chileno-Norteamericana de Comercio (Amcham) Cámara Oficial Española de Comercio de Chile Cámara Chileno Alemana de Comercio Cámara de Comercio Chileno Argentina Cámara de Comercio Chileno Brasileña de Santiago Cámara de Comercio Chileno China Cámara de Comercio Chileno Francesa Cámara de Comercio Chileno Mexicana Cámara de Comercio Chileno Peruana Instituto Chileno de Administración Racional de Empresas (Icare) Confederación Internacional de Bancos Populares Acción RSE Fundación ProHumana THE COMPANY HAS A NETWORK OF 273 BANKING SERVICES OFFICES IN CHILE Fundación Generación Empresarial Global Compact in Chile (United Nations)

14 04. Profile Prizes and recognitions During 2007, Bci received prizes and distinctions not only for its performance but for its reputation and commitment shown toward its staff, the community and the environment. Company of the year prize, Chile US Chamber of Commerce (Miami). This prize identifies and recognizes those organizations that stand out for their leadership in the industry, and for their vision and social responsibility toward the Chilean business community resident in Miami, United States. Ranking of the most profitable and best governed banks in Latin America, Management & Excellence (M&E) and Latin Finance magazine. Bci obtained third place. Ranking of the most admired companies, Diario Financiero and PricewaterhouseCoopers. Bci was placed sixth, maintaining its position among the top ten places during the nine years that this survey has been carried out. Ranking of the best companies to work for in Chile, Great Place to Work Institute and Capital magazine. Bci was placed 21st among the 35 best companies to work for in Chile. Ranking of the most socially-responsible companies, Fundación ProHumana and Capital magazine. Bci achieved 8th place among companies noted for their performance in this area. Competition of institutional annual reports, Editorial Gestión and PricewaterhouseCoopers. For the third consecutive year, the annual report, together with its report on corporate governance and CSR, were awarded top place in this competition.

15 Report on Corporate Governance and CSR Prize for the best banks in Latin America, América Economía magazine. Bci was placed 14th among the best banks in Latin America. Chilean ranking of consumer satisfaction, ProCalidad, Universidad Adolfo Ibáñez, Adimark, Praxis and Capital magazine. Bci received an honorable mention in the category Companies with Memberships. National prize for energy efficiency, Confederación de la Producción y del Comercio (CPC), Ministry of the Economy and Diario Financiero. Bci received the prize in the Large Company category for the implementation of energy efficiency plans in its management and advertising campaigns. Annual safety prize of the Consejo Nacional de Seguridad. Bci won first place in the banking company category. Bci has received this distinction for 12 years. Heritage prize in the company category, Corporación Patrimonio Cultural de Chile. Bci received this distinction for its constant support for cultural-value projects of heritage importance. Garrigues-Affinitas prize for good corporate governance in Latin America, awarded at the 9th Latibex Forum in Spain. Bci was among the finalists of the 2nd edition of the Garrigues-Affinitas prizes for good corporate governance in Latin America. Global Pulse ranking, Reputation Institute and Pontificia Universidad Católica de Chile Placed 28th from among 100 companies, achieving recognitions among Chilean companies in four of the seven dimensions, with first prize in innovation and working environment. Ranking of companies with the best corporate reputation, Hill & Knowlton Captiva, La Tercera and Collect. Bci was places 21st out of 25 companies evaluated. Silver Big! in the financial services category, CONEP Marketing S.A. and Marketing Directo and Nacional de Avisadores associations. Bci obtained the Big! prize in recognition of the best direct and relational marketing campaigns.

16 04. Profile Dialogue and commitments with our stakeholders Bci s corporal social responsibility (CSR) strategy, as well as its mission, has as its basic pillars the principal stakeholders with whom it relates: shareholders, staff and their families, customers, suppliers and society. The Bank gives priority to the generation of trust and transparency in all its relations and has therefore developed and introduced different levels of communication, consultation, dialogue and participation. The following table identifies the principal stakeholders, the different mechanisms of dialogue, and the expectations and interests detected by these mechanisms and examples of the way in which Bci responds to them. Stakeholder Mechanism of dialogue/involvement Interests and expectations Response Shareholders (majority & minority) Web site ( Bci provides its shareholders & the public with information on financial performance, liquidity & market risk. Investor Attention Office, under the Planning & Performance Control Management. Create sustainable value. Report promptly, transparently & reliably. Publication & distribution of the Annual Report. Publication & distribution of the Report on Corporate Governance & Corporate Social Responsibility. Telephonic conferences with analysts & investors. Personal meetings with institutional shareholders & the principal market investors. Electronic mail: [email protected], where analyst & investor enquiries are received. Staff Programs for improving the organizational climate & quality of working life, like the Listen to Staff & Bci is Listening to You programs. Surveys & dialogue to know perceptions, like face-to-face meetings, the service quality survey (internal), benefits and working environment survey. Also hold meetings with the unions. Development of internal means for reporting on the Bank s progress, like corporate , intranet, internal magazine, corporate channel & news-boards. Work in a company with a pleasant & respectful working atmosphere. Balance work with family life. Know the company s strategy. Awarded 8th place in ranking of socially responsible companies (ProHumana). Be among the 25 best companies to work for in Chile. Maintenance of the lowest occupational accident frequency rates in the banking industry. Studies to establish the company s internal reality like the ProHumana & Great Place to Work rankings.

17 Report on Corporate Governance and CSR The Bank gives priority to the generation of trust and transparency in all its relations and has therefore developed and introduced different levels of communication, consultation, dialogue and participation. Stakeholder Mechanism of dialogue/involvement Interests & expectations Response Customers Use of various tools for knowing the perception of customers with respect to the service of Bci: Listen to Customers program, Complaints Attention system & Customer Satisfaction Survey. Improve the quality of service. Give guarantee of transparency, security & confidence. Creation & redefinition of monitoring mechanisms at customer satisfaction level. Publication of manual Our commitments to you, Bci at the service of its customers. Suppliers Development of mechanisms for knowing the perceptions of suppliers: survey of suppliers, web portal for suppliers and use of the suggestions & complaints channel. Reduce payment times. Provide information on tendering processes. Maintain fluid communication channels. Generate transparent & long-term business. Creation of Corporate Procurement & Suppliers Management. Speed up process of suppliers payments. Creation of site on page for suppliers that includes an on-line consultation channel. Formalization & standardization of suppliers evaluation criteria. Community Measurement of Bank s activities & the way in which they are perceived through the Corporate Reputation Study (evaluation of CSR performance) and Most Admired Companies survey. Support for social development. Development of alliance with Fundación Las Rosas. Maintenance of the Corporación de Crédito al Menor and Nocedal Orchestra, which benefits children at social risk. Support the development of SMEs (Nace & Renace programs).

18 Corporate Social Responsibility (CSR) Over and above the way in which the Bank manages its businesses, Bci has the ethical need to positively impact the community with concrete benefits that ratify the values with which the company and its shareholders are developing.

19 common good... Over 70 years concerned for the people. Report on Corporate Governance and CSR

20 05. Corporate Social Responsibility in Bci PEOPLE ARE THE CORE OF THE BANK S BUSINESS Principles Throughout its history, the focus of Bci s business has been the Value Framework which its shareholders have established in its Mission. Its efforts therefore have been centered on maximizing the value that the Bank generates both for its shareholders and customers, but also for its staff and society. These are the principles that motivate Bci to not only seek to manage its businesses in accordance with the prevailing law, but to make constant efforts to best satisfy all those who receive the effects of its actions. The Bank is convinced that there is an ethical imperative that has to be met.

21 Report on Corporate Governance and CSR Value Framework The policies and actions that Bci develops take into account that the person is the final objective and the center of all human activity. In this way, the Bci Corporation, apart from trying to maintain returns on capital and assets above the financial system average through operating efficiency, services of excellence and strong technological innovation, has as its principal aim to promote the economic, professional, moral and spiritual welfare of everyone affected by its activity, especially its shareholders, customers and staff. In the consideration of the Value Framework, Bci takes into account the universal recognition that the Common Good should take priority over the Individual Good of its members. People All members of Bci have to always remember everyone s right to preserve their dignity, which translates into the acknowledgement of: Their freedom and expression in legitimate autonomy in the work field so that everyone has the opportunity to develop their initiative within their own environment. Their work facilitates personal realization, and also of those under their influence. Their right not to be pressured to do what their conscience tells them is illicit. The duty to work in accordance with natural moral order requirements on which all value frameworks are based. Their work is carried out honestly, refraining from acting in variance with the ethical standards and laws to the benefit of Bci, themselves or customers. Their right to be treated always with respect, which implies the corresponding duty to care for the reputation and good name of others. Support for the stability and constitution of the families of their staff and their dedication to them. The Corporation Those working for Bci have to acknowledge their commitment with the organization, which requires of them to: Cooperate decidedly in achieving Bci s targets and objectives, providing with initiative the due collaboration with customers, subordinates, superiors and working colleagues. Work with intensity, constancy and dedication, bringing their capacity and initiative together with personal responsibility. Contribute effectively to the existence of a climate of trust, respect and harmony that facilitates team work. Assume as their own the indications of the authorities in the legitimate exercise of their powers. Be extremely prudent in questions of economic and business ethics, seeking advice if necessary in order to act always in an exemplary way. Provide information as required as quickly and accurately as possible so that everyone can take their decisions with the proper information, safeguarding the confidentiality of customer information in accordance with the legal framework in which the Corporation operates. This duty is especially relevant to those in supervisory positions. Maintain excellent personal and commercial relations with Bci customers, providing the best service honestly and transparently, and always caring for the legitimate interests of the Corporation. Be examples both in commercial activities and their social and private ones, as the prestige of the Corporation is in those working for it.

22 05. CSR in Bci Strategy The CSR strategy of Bci is based on its Value Framework which directs the definition of the different policies, actions and objectives related to staff, customers and suppliers, shareholders and society. It also states that people are the final object and center of all the activities. In accordance with this action framework, CSR for Bci is based on two principal ideas: The company should ensure that all its actions and their effects lead to the achievement of progress, not only for its own shareholders but also for the community. CSR should be integrated imperatively in the management of the company as the welfare of the community in which it operates influences it significantly. The commitment of Bci with this CSR strategy is evidenced by the incorporation of its targets and indicators in its balanced scorecard (BSC) /2009. To ensure compliance with the CSR objectives set in the BSC, an inter-managerial work team was formed called the CSR Continuous Improvement Team. Corporate Social Responsibility Process. 7. Evaluation and improvement of the process 6. Follow-up and results 1. Formation of multi-disciplinary team 5. Presentation to the Corporate Governance & CSR Committee 2. Definition of CSR process strategy 3. Definition of targets according to BSC 4. Plans according to BSC 3 Balanced Scorecard (BSC): management model that helps Bci to translate the strategy into tactical objectives and which has been used since It is a program for the management of change and not simply a program for measuring what has been done.

23 Bci s efforts, both in its value framework and in its CSR strategy, are focused in the maximization of the value that the Bank generates for both its shareholders and customers, but also for its staff and society. Report on Corporate Governance and CSR Areas of action Bci has defined six areas of action to develop its management model, each of which is intimately related with its principal stakeholders: Corporative governance Ethics The environment Quality of working life Customers and suppliers Commitment with the community The detail of Bci s performance in each of these areas of action on which CSR management is structured is shown below.

24 Corporative governance & ethics The Bank is concerned every day to improve the internal corporate governance policies and of innovation in the creation of new campaigns and committees that transmit the Bci spirit to its staff.

25 new innovations... Come and reinforce the Ethics Code Report on Corporate Governance and CSR

26 06. Corporative governance & ethics Board of Directors The Company s board is comprised of nine members who were elected at the ordinary shareholders meeting held on April 24, 2007, in accordance with the law and the bylaws. These remain in their positions for three years, and may be re-elected. The board has elected from among its members Luis Enrique Yarur Rey as chairman and Jorge Cauas Lama as vice chairman. The board s mission is to maximize the value of the Company over the long term, caring for the interests of the shareholders, customers, suppliers, staff and their families and society, ensuring the Company s future viability and competitiveness, with respect for current legislation and the ethical duties contained in Bci s code of ethics. The board s actions are governed by the following principles and documents: Bci s ethics code which contains the principles that inspire the form of conduct of the businesses by members of the company, covering aspects of commercial behavior and relations with shareholders, customers, suppliers, staff, their families and the public in general. It also refers to eventual conflicts of interest between the personal conduct of those working in the organization and their positions in Bci. To ensure that all acts are carried out in the most transparent way possible, so that there is no doubt that these have been done in strict accordance with its mission. The board should also ensure that this principle covers all acts of the Bank s management. Members of the board should perform their work having complete information available, in good faith, with due diligence and always caring and safeguarding the best interests of the company and all its shareholders. Bci has therefore established processes for permitting a complete and transparent flow of information from and to the board. When board decisions may affect different groups of shareholders in different ways, such decisions should be taken to ensure a fair treatment for each one of them. It should therefore ensure the freedom of opinion of all members of the board and encourage constructive criticism concerning the way in which the Bank is managed.

27 The board s mission is to maximize the value of the company over the long term, caring for the interests of the shareholders, customers, suppliers, staff and their families and society, through the respect of current legislation and the ethical duties contained in Bci s code of ethics. Report on Corporate Governance and CSR Board members Position Since Luis Enrique Yarur Rey Chairman October 21, 1991 Jorge Cauas Lama Vice Chairman March 19, 1992 Andrés Bianchi Larre Director April 24, 2007 Juan Manuel Casanueva Préndez Director April 24, 2007* Pedro Corona Bozzo Director March 24, 1998** Sergio De Amesti Heusser Director March 24, 1977 Alberto López-Hermida Hermida Director April 17, 2001 Dionisio Romero Seminario Director February 27, 1996 Daniel Yarur Elsaca Director April 17, 2001 * Juan Manuel Casanueva Préndez was previously a director of Bci during the period ** Pedro Corona Bozzo was previously a director of Bci during the periods and

28 06. Corporative governance & ethics Profile In order that directors make a concrete contribution to the governance of the Bank, these are elected based on their intellectual, professional and values qualities. They are also people who have performed outstandingly in their respective fields of action. The directors therefore have formation and tendencies that do not always coincide, so that the quality of the decisions taken is guaranteed by the variety of positions. The board members include representatives of different branches of economic activity, an ex minister of state, an ex president of the Central Bank of Chile and an ex superintendent of securities and insurance, having performed in these positions in different political administrations. While there are no formal requirements for joining the board, over and above those established by law, the board has traditionally comprised professionals and business people unrelated either under a controlling agreement or to the Yarur family, with the sole exception of its chairman. At the close of 2007, the direct shareholdings in the company of the members of the board amounted to 1.4 % of its share capital. Luis Enrique Yarur Rey Chairman Master in Economics and Business Management from the Instituto de Educación Superior de Empresas (IESE), Spain, and Lawyer from the Universidad de Navarra, Spain. He is currently Chairman of Empresas Juan Yarur S.A.C., Vice Chairman of the Chilean Banking Association, Director of the Santiago Stock Exchange, Member of the International Advisory Board of IESE, Spain, Member of the Business Advisory Council of the Center for Superior Studies of the Universidad de Los Andes (ESE); Director of Bci Seguros de Vida S.A. and Bci Seguros Generales S.A., Chairman of Empresas Jordan S.A., Chairman of Salcobrand S.A., Vice Chairman of Empresas Lourdes S.A. and Director of Banco de Crédito del Perú, among other boards. Prior to his present position, he was Chief Executive Officer of Bci for 11 years.

29 Report on Corporate Governance and CSR Jorge Cauas Lama Vice Chairman Master of arts in Economics, Columbia University, United States and Civil Engineer from Universidad de Chile. Number Member of the Academy of Social, Political and Moral Sciences of the Instituto de Chile. Vice Chairman of Empresas Juan Yarur S.A.C., Chairman of Bci Seguros Vida; Chairman of Bci Seguros Generales and Member of the Business Advisory Council of the Center for Superior Studies of the Universidad de Los Andes (ESE). He has been a Professor at Universidad de Chile and Pontificia Universidad Católica de Chile, Vice President of the Central Bank of Chile, Director of the Center of Studies for Development of the World Bank, Minister of Finance and Chilean Ambassador to the United States. Andrés Bianchi Larre Director Degree in Legal and Social Sciences from Universidad de Chile and Master of Arts in Economics from the University of Yale. He is currently President of the Financial Advisory Committee of the Ministry of Finance and is a Director of Empresas Copec S.A., the Cámara Chileno Norteamericana de Comercio and the Fulbright Commission. He has been Chilean Ambassador to the United States, President of the Central Bank of Chile, of Dresdner Banque Nationale de Paris and Banco Credit Lyonnais Chile; and joint Executive Secretary of the Economic Commission for Latin America. He has been Professor in Economics at Universidad de Chile and Pontificia Universidad Católica de Chile, Visiting Professor to the University of Boston and Visiting Researcher of the University of Princeton. Juan Manuel Casanueva Préndez Director Civil Engineer from Universidad de Chile. He is Chairman of Grupo Gtd and a Director of Fundación Rodelillo and Corporación del Patrimonio Cultural. He is also a Member of the Advisory Council of the Center for Superior Studies of the Universidad de Los Andes (ESE) and of the Business Council of the Center of Enterprise of Universidad del Desarrollo.

30 06. Corporative governance & ethics Pedro Corona Bozzo Director Accountant Auditor, Degree in Economics and Management Sciences, Universidad de Chile. He is Chairman of Administradora de Fondos de Pensiones Cuprum and the Cámara Nacional de Comercio, and a Director of Depósito Central de Valores. He has been President of the International Federation of Pension Fund Managers, President of the Chilean Pension Funds Association, Chairman of Fábrica de Cementos el Melón S.A. and Vice President, Administration and Finance, of Codelco Chile. Sergio de Amesti Heusser Director Lawyer from Universidad de Chile. A Director of Empresas Juan Yarur S.A.C., Director of Fundación Andes and Member of the Chilean Institute of Lawyers. A founding partner in the Law Firm De Amesti, Bezanilla, Torres y Cía. Ltda. and has been a Director of various companies. Alberto López-Hermida Hermida Director Public Accountant from Universidad de Buenos Aires and Accountant Auditor from Universidad de Chile. Was a partner in the firm PricewaterhouseCoopers in which he occupied several management positions in Argentina, England and Chile, becoming the senior partner of the firm in Chile. He is currently the Director General of the Center for Superior Studies of the Universidad de Los Andes (ESE).

31 Report on Corporate Governance and CSR Dionisio Romero Seminario Director Master in business Administration from University of Stanford, Business Administration (BA) in Economics from Pomona College, California, both in the United States. Currently Chairman of Corporación Credicorp; Peru; Chairman of Banco de Crédito del Perú, of the Peruvian Bankers Association and Chairman of Banco de Crédito de Bolivia. Daniel Yarur Elsaca Director Graduated in Advanced Management Program of Harvard Business School, United States, Master of Science in Finance, London School of Economics, United Kingdom and Engineer in Information and Management Control and Accountant Auditor from Universidad de Chile. Director of Invertec Pesquera Mar de Chiloé S.A., of Sociedad Química y Minera S.A. and of Antofagasta Minerals Plc. He has been President of the Council of Securities Regulators of the Americas (Corsa); Superintendent of Securities and Insurance and Professor in the Economics Faculty of Universidad de Chile. Lionel Olavarría Leyton Chief Executive Officer Master in Economics and Business Management from the Instituto de Educación Superior de Empresas (IESE), Spain and Civil Industrial Engineer from Universidad de Chile. He is currently a Director of Bci Seguros Generales, Bci Seguros de Vida, Bci Corredor de Bolsa, Empresas Juan Yarur S.A.C. and Salcobrand S.A. and is Chairman of Bci Factoring. He previously worked as a Consultant Engineer in Chile and Spain, occupying the positions of Controller of Chemical Bank, Spain, and Commercial Manager of Banco Santiago. He was the founding Chairman of Redbanc S.A., Chairman of Transbank S.A. and Edibank S.A., Chairman of Servipag S.A., Director of Parque del Sendero S.A., Chairman of Artikos Chile S.A, Banco Conosur and Director of Financiera Solución (Peru). He has 32 years experience in banking and 26 years with Bci, being its Chief Executive Officer since 1993.

32 06. Corporative governance & ethics Functioning The board meets monthly to analyze and resolve on the principal matters of its competence of the various activities of the Bank, and meets extraordinarily if the management of the business so requires. As established by law, board meetings are constituted with the absolute majority of its members and resolutions are adopted by the absolute majority of the directors present at the meeting, there being no matters for which a larger quorum is required for their approval. The chief executive officer is the secretary of the board, at both ordinary and extraordinary meetings, assisted by the Bank s legal counsel. Bci has set internal policies for ensuring that each director has in good time all the information required for the correct taking of decisions. All the reports and presentations that serve as a basis for the matters for discussion at each meeting, and which are not of a strictly-confidential nature, are therefore handed to each director in advance. Among the reports examined, the board receives a monthly presentation on the performance of the management of Bci and the results for the present year. It also analyzes and pronounces annually on the results of the management evaluation process completed by all levels of the organization, of the Bank and its subsidiary companies, according to a procedure that takes into account a separated composition of activities of the different risk areas. As in every year, and in order to deal with specific matters that require a reasoning and deeper understanding appropriate to good corporate governance, the board met on December 18, 2007 for a full day to revise matters like the determination of Bci s global strategy and planning, and the budget for the following year, the definition of priority plans for the coming year, the revision of the results for 2007, and the degree of compliance with the agreed action plans. Attendance at board meetings Director Luis Enrique Yarur Rey (Chairman) Jorge Cauas Lama (Vice Chairman) Andrés Bianchi Larre* - 9 Juan Manuel Casanueva Préndez* - 8 Pedro Corona Bozzo Sergio De Amesti Heusser Alberto López-Hermida Hermida 12 9 Dionisio Romero Seminario 9 10 Daniel Yarur Elsaca 10 9 * Andrés Bianchi Larre and Juan Manuel Casanueva Préndez were appointed as directors on April 24, 2007.

33 Report on Corporate Governance and CSR Functions Apart from the powers of judicial and extra-judicial representation to comply with the corporate objects that the law grants to the board, this specifically carries out the following key and distinctive functions: The definition of the Bank s mission. The approval, revision and supervision of the corporate strategy, the principal action plans, the annual budgets and supervision of the principal expenses, investments, acquisitions and disposals of assets. The revision and approval of the monthly and annual financial statements. The evaluation and supervision of portfolio diversification and credit-risk, operational and technological policies, and the performance of the subsidiary companies. The supervision and arbitration of possible conflicts of interest between the management, directors and shareholders, including the fraudulent use of corporate assets and the abuse of transactions between stakeholders. Examination of compliance with the obligation of integrity of the Company s accounting systems and financial statements, including the making of an independent audit and the implementation of proper control systems. Supervision of compliance with the Bank s transparency and corporative governance policies. Supervision of the communication process and information policy. Examination and response to presentations addressed to the Superintendency of Banks and Financial Institutions by customers and the public.

34 06. Corporative governance & ethics Special powers conferred by the board on its chairman The chairman of the board has special powers to act with the necessary flexibility for the executive and agile exercise of his responsibilities. Apart from the particular powers of the chairman by law or the bylaws, this power includes the following: Supervise the planning and annual budget processes and be kept informed of and supervise the corporate operations and business. Approve the Bank s general organization. Appoint and remove when deemed convenient one or more managers, assistant managers and other executives, with the exception of the chief executive officer, who may only be appointed or removed by the board. This power extends to the setting of his remuneration. Determine the powers of the different committees and executives for granting credit or for taking positions in financial instruments in Chile or abroad, with reference to the amounts, characteristics, conditions and other matters, adopt the mismatch of positions, accept maximum losses and carry out trading operations. Partially delegate the powers granted to him to one of more managers. In the absence of the chairman, these powers shall be exercised by the Vice Chairman. Committees The board seeks to adapt its functions to limit its actions in the determination and supervision of the corporate policies, without interfering in their management, so that the management and the board meet their objectives in the best possible way. The board has therefore delegated some of its powers to committees especially formed for this purpose.

35 Report on Corporate Governance and CSR Executive Committee The Executive Committee meets twice a week with full powers granted by the board to resolve on different matters, principally of a credit and business nature. This committee is made up of five board members, being Luis Enrique Yarur Rey (Chairman), Jorge Cauas Lama (Vice Chairman), Pedro Corona Bozzo, Sergio De Amesti Heusser and Alberto López-Hermida Hermida, with Andrés Bianchi Larre, Juan Manuel Casanueva Préndez, Dionisio Romero Seminario and Daniel Yarur Elsaca being alternate members. The Executive Committee has the following powers: Resolve on all the Bank s credit and financial operations submitted for its consideration and resolution. Approve the general policies and manuals of financial, credit and operational risk. Set interest and discount rates for the Bank s transactions and set position limits for loans and financial investments in Chile and abroad, and the maximum permitted losses. Receive reports on the country s different economic sectors and analyse and evaluate their trends, setting credit and financial exposure limits applicable to each of them. Determine the resources to be employed periodically in provisions and write-offs, apart from ensuring compliance with applicable regulations. Resolve the purchase, sale and constitution of collateral on all kinds of movable and immovable assets, securities and rights of any kind, apart from the limitations and prohibitions established in the General Banking Law. Establish branches, agencies and other offices in the country or abroad, and terminate their operations. Grant the general and special powers necessary for the due functioning of the Company. Approve specific donations within the applicable law. Directors attendance at Executive Committee meetings Director Luis Enrique Yarur Rey (Chairman) Jorge Cauas Lama (Vice Chairman) Andrés Bianchi Larre* - 50 Juan Manuel Casanueva Préndez* - 43 Pedro Corona Bozzo Sergio De Amesti Heusser Alberto López-Hermida Hermida * Andrés Bianchi Larre y Juan Manuel Casanueva Préndez asumieron sus cargos el 24 de abril de 2007.

36 06. Corporative governance & ethics Directors Committee In accordance with clause 50 bis of the Corporations Law, the board has appointed three directors to comprise this committee: Alberto López-Hermida Hermida (Chairman), Andrés Bianchi Larre and Jorge Cauas Lama, who meet the requirements of independence. As required by the law, its functions include, among other things, examining the reports of the external auditors, the balance sheet and financial statements presented by the Company s management for its shareholders, and pronounce on them prior to their submission to the shareholders for approval. It should also propose to the board the external auditors and credit-rating agencies to be suggested to shareholders for their appointment and examine the information relating to transaction with related parties. It should take note of and report on important risks detected or confirmed as a result of internal audits and revisions made the Corporations comptroller s area and coordinate their tasks with the revisions of the external auditors; take note of events or acts of suspicious conduct and fraud detected; resolve on conflicts of interest; be informed about the policies applied to prevent and detect eventual suspicious asset-laundering transactions and financing of terrorism; take note of the resolutions adopted by the Asset Laundering Committee of the Bank and its subsidiaries. Since the start of its functoning, the Directors Committee has incurred no expenses other than the monthly remuneration approved by the ordinary shareholders meeting, the approved expense budget remaining unused. Directors Attendance at Directors Committee Meetings Director Alberto López-Hermida Hermida (Presidente) Jorge Cauas Lama Andrés Bianchi Larre* - 12 * Andrés Bianchi Larre became a director on April 24, 2007.

37 Report on Corporate Governance and CSR Corporate Governance and Corporate Social Responsibility Committee The Corporate Governance and Corporate Social Responsibility Committee is responsible for designing and revising the Company s policies concerning the best corporate governance practices for the Company s internal management. Its duties contemplate supervising Bci s policies and programs relating to matters that affect the communities in which the Bank operates and revising the current social responsibility practices within the Corporation and evaluating its external relations, caring for the corporate reputation of the Company. The Corporate Governance and Corporate Social Responsibility Committee is made up of Luis Enrique Yarur Rey (Chairman), Jorge Cauas Lama, Pedro Corona Bozzo, Sergio De Amesti Heusser and Daniel Yarur Elsaca. Apart from the tasks inherent in its mission and role, the committee has the following functions: To propose modifications to the Bank s discretionary powers structure and set general policies on the appointment of its attorneys and representatives. To monitor compliance with the formation actions of the directors and managers. To periodically revise the ethics code, establishing the adaptations and updating it requires or which the committee considers necessary. To set procedures, policies and programs concerning donations and social good activities. To control the business practices of the Bank and its subsidiaries and the impact that these may have on the reputation, image and prestige of the Corporation. To revise the proposals of shareholders, the quality of the Bank s service and information to them, and management s responses to their requirements, if any. To approve the institution s annual corporate governance and corporate social responsibility report. Directors attendance at meetings of the Corporate Governance and Corporate Social Responsibility Committee Director Luis Enrique Yarur Rey (Chairman) 4 4 Jorge Cauas Lama 4 4 Pedro Corona Bozzo 4 2 Sergio De Amesti Heusser 4 3 Daniel Yarur Elsaca 2 4

38 06. Corporative governance & ethics Finance and Corporate Risk Committee The directors Finance and Corporate Risk Committee was created in June 2007 to further strengthen the directors knowledge about the progress of the business, specifically in these areas. This committee comprises Luis Enrique Yarur Rey (Chairman), Andrés Bianchi Larre and Jorge Cauas Lama. Apart from the duties inherent in their mission and role, this committee includes the following functions: To revise the large commercial exposures of the money desk and country risk. To revise the behavior of allowances and write-offs and their comparison with the industry. To revise the principal loans deteriorations and origination of new customers. To control the strategies of the Assets and Liabilities Committee (Alco) according to market variables. To revise compliance with internal limits and the principal changes in financial risk. The above functions do not imply their superposition or delegation by the board. This committee is a more focused level and permits an evaluation together with the managers of the respective areas. Directors attendance at meetings of the Finance and Corporate Risk Committee Director 2007 Luis Enrique Yarur Rey 4 Jorge Cauas Lama 4 Andrés Bianchi Larre 4

39 Report on Corporate Governance and CSR Compensations Committee The board s Compensations Committee was formed in September 2007 to increase directors participation in the control and definition of the Corporation s staff compensation system. The committee members are Luis Enrique Yarur Rey (Chairman), Juan Manuel Casanueva Préndez and Pedro Corona Bozzo. Apart from the duties inherent in their mission and role, this committee includes the following functions: To establish the general compensations policy applicable to the Company, including remuneration, bonuses and benefits by staff segments. To analyze the compensations system in relation to the industry of other comparative regimes. To establish the aspects that are involved in remunerations, both those agreed contractually and those that relate to incentives, targets or other variable factors. To establish compensation mechanisms that ensure their consistency as a function of the Bank s mission, that endeavors to ensure for all dignified quality of life, stable work and possibilities for personal, professional and family development, motivating for all staff and suitably rewarding good performance. The above powers do not imply their repetition, superposition or delegation by the board, as this committee intends to ensure more specifically compliance with the objects set itself. Directors attendance at meetings of the Compensations Committee Director 2007 Luis Enrique Yarur Rey 1 Juan Manuel Casanueva Préndez 1 Pedro Corona Bozzo 1

40 06. Corporative governance & ethics Directors participation in the administrative organs of the subsidiary companies of Bci or Empresas Juan Yarur S.A.C. The following shows the positions of Bci s directors and chief executive officer in the administrative organs of the Bank s controlling company or the Bank s subsidiaries. Director Position Company Luis Enrique Yarur Rey Chairman Chairman Chairman Vice Chairman Director Director Director Empresas Juan Yarur S.A.C. Inversiones Jordan Dos S.A. Salcobrand S.A. Empresas Lourdes S.A. Inversiones Empresas Juan Yarur S.A. Bci Seguros de Vida S.A. Bci Seguros Generales S.A. Parque del Sendero S.A. Jorge Cauas Lama Chairman Chairman Chairman Vice Chairman Inversiones Empresas Juan Yarur S.A. Bci Seguros de Vida S.A. Bci Seguros Generales S.A. Empresas Juan Yarur S.A.C. Sergio De Amesti Heusser Director Empresas Juan Yarur S.A.C. Chief Executive Officer Position Company Lionel Olavarría Leyton Chairman Director Director Director Director Director Bci Factoring S.A. Empresas Juan Yarur S.A.C. Bci Seguros de Vida S.A. Bci Seguros Generales S.A. Salcobrand S.A. Bci Corredor de Bolsa S.A.

41 Report on Corporate Governance and CSR The Board s Self-Evaluation Process The board annually makes a self-evaluation of its work. This process considers basic aspects like measuring punctuality and attendance, the level of preparation with which directors attend meetings, the depth of the matters discussed, the form in which the priorities and concerns of the board are reflected in the management s actions, the manner in which the board s commitment is reflected in the Bank s management and the degree of preparation of the directors to contribute to the business. Also evaluated is whether the board as a body has a clear, explicit and consensual future vision and whether its discussions ensure an optimum taking of decisions. Directors Remuneration As stated in the law and in the bylaws, the ordinary shareholders meeting establishes the directors remuneration for the immediately following period. At the meeting held on April 24, 2007, the following remuneration was approved for that year and until the next ordinary shareholders meeting: Fixed monthly remuneration: 150 Unidades Tributarias Mensuales (an official inflation-indexed monetary unit) for each member of the board except for the chairman who shall receive a fixed remuneratioin of 650 Unidades Tributarias Mensuales. Remuneration for meetings attended of the board, the board s Executive Committee or Corporate Governance and Corporate Social Responsibility Committee: 5 Unidades Tributarias Mensuales. Variable remuneration: 0.5% of the net income, considering for these purposes the average earnings of the last three previous years. The profit sharing so determined shall be divided by 10, assigning one fifth to the chairman of the board and one tenth to the other directors. Remuneration of the Directors Committee: 50 Unidades Tributarias Mensuales for each member of the committee. Regarding this committee s operating expense budget, the board believes it appropriate to propose the same amount as the previous year, equivalent to 170 Unidades Tributarias Mensuales. As the total earnings of Bci have increased strongly over the years, its shareholders have reduced the percentage of earnings paid to directors as total remuneration for their services. Whereas ten years ago, this percentage was almost 5% of the Bank s earnings, today it amounts to 1.18% of annual earnings. During 2007, the total amounts paid to the board, including both fixed and variable amounts, consisted of : Allowances, fees and other expenses paid, equivalent to 0.66 % of the earnings for Profit sharing, equivalent to 0.52% of the earnings for

42 06. Corporative governance & ethics Total Bci directors remuneration / Corporate earnings 4.5% 4.0% 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0% Note: The calculation of this kind of remuneration for the years takes the average earnings for the last three years. Board s policy with respect to transactions and its related parties The Corporation s board has adopted a policy referring to credits granted to parties related to the Bank by ownership or management, which, apart from current legislation, are subject to the following conditions: Each financing transaction granted to related persons, whether direct or indirect debt, should be approved by the board s Executive Committee. Such credits shall be granted on market terms with respect to term, interest rates and collateral. The maximum individual limit for groups of related persons is 5% of Bci s consolidated effective equity. Also, the sum of the whole loan portfolio with related parties cannot exceed 25% of the effective equity. The indebtedness with the Bank of persons and entities related by ownership or management shall be reported to the board s Executive Committee on each occasion that a credit is requested, whether a direct or indirect obligation both of the group to which the debtor belongs and the total of the whole related credits portfolio. Excluded from this rule are credits granted to staff of the Bank and its subsidiaries, apart from the legal limits that affect them. In addition, and in consideration of legal requirements, the board has a list of habitual suppliers of goods and services necessary for the normal functioning of the Bank, requiring that the acquisition of supplies or use of services should be carried out on market conditions and that any transaction that is not an habitual provision of goods and services, that does not correspond to banking transactions or comes from a related supplier not included in the authorized list, should be qualified and approved beforehand by the board, after an examination and report by the Directors Committee.

43 Report on Corporate Governance and CSR The current list of related suppliers of goods and services necessary for the normal functioning of the Bank is the following: Análisis y Servicios S.A. (Proservice) Archivos Credenciales e Impresos Ltda. Archivert Ltda. Artikos Chile S.A. Bci Administradora de Fondos Mutuos S.A. Bci Asesoria Financiera S.A. Bci Corredor de Bolsa S.A. Bci Corredor de Seguros S.A. Bci Factoring S.A. Bci Securitizadora S.A. Bolsa de Comercio de Santiago Carnes Ñuble S.A. Centro Compensación Automatizado S.A. Cia.de Normalizacion de Creditos Normaliza S.A. Deposito Central de Valores Distribuidora de Carnes Chillán Ltda. Distribuidora de Carnes Ñuble - Santiago Ltda. Editora e Impresora Cabo de Hornos S.A. Empresas Jordan S.A. Faenadora de Carnes Ñuble S.A. Galeria de Arte Patricia Ready Limitada Operadora de Tarjetas de Credito Nexus S.A. Redbanc S.A. Sociedad de Recaudacion y Pagos de Servicios Ltda. (Servipag) Teknofas S.A. Transbank S.A. Vigamil S.A.C. E I. Viña Fray Leon S.A. Viña Morande S.A.

44 06. Corporative governance & ethics Management Senior executives One of the management characteristics of Bci is that it has highly-qualified people who have spent most of their careers in the organization and have a broad experience in banking. Andrés Atala Hanna Manager, Risk Adviser Has 52 years in banking and with Bci, having worked as manager of branches, manager of the central office, manager of the commercial area, manager of the corporate risk area and manager of the corporate credit area, among other jobs. Carlos Andonaegui Elton Manager, Secretary General Has 20 years in banking and 4 with Bci. Is a lawyer from Pontificia Universidad Católica and was a lawyer of Banco Estado until Was legal counsel of Banco Conosur and Empresas Conosur S.A. Pedro Balla Friedmann Legal Counsel Has 24 years in banking and with Bci, qualifying as a lawyer from Universidad de Concepción. He is currently a member of the legal committee of the Chilean Banking Association. Humberto Béjares Jara Manager, Adviser to the Chairman and Chief Executive Officer Has 52 years in banking and with Bci. Since 1975 he has deputized for five chief executives. In his long career with Bci he has manager units like centralized accounting, comptroller s, finance, operations and systems, administration and human resources at the head office.

45 Report on Corporate Governance and CSR Marcela Bravo Puldain Manager, Communications and Bci Corporate Social Responsibility She is a commercial engineer from Universidad de Chile and is currently director of the Corporación de Crédito al Menor, AcciónRSE and the Global Compact in Chile. She has 22 years experience in commercial, marketing and communications areas and 3 years with Bci. Roberto Bustos Kaempffer Manager, Planning and Financial Control He is a commercial engineer and accountant auditor from Universidad de Chile and graduated in the Advanced Management Program of Harvard Business School. He has 30 years experience in banking and joined Bci in He was previously vice president, operations, with Citibank s agency in Chile, and has worked with Republic National Bank and Banco Santiago. Nicolás Dibán Soto Manager, Corporate Risk Has 28 years experience in banking and with Bci. He is a commercial engineer from Universidad de Chile and graduated in the Corporate Senior Management Program (PADE) of the Center of Superior Studies of Universidad de Los Andes (ESE). In Bci, he has worked as manager of the branches, retail banking and marketing areas. Graciela Durán Vidal Manager, Bci Corporation Comptroller Has 21 years experience in banking and with Bci. She is a public accountant and accountant auditor from Universidad de Santiago and graduated in the Corporate Senior Management Program (PADE) of the Center of Superior Studies of Universidad de Los Andes (ESE). She was previously audit manager with PricewaterhouseCoopers. She has worked for Bci since 1986 as adviser to the chief executive officer and manager of the financial control and management department. She is currently vice chairman of the controllers committee of the Chilean Banking Association.

46 06. Corporative governance & ethics Mario Gaete Hormann Manager, Support Areas Has 25 years experience in banking and 18 with Bci. He is a civil industrial engineer from Universidad de Chile and graduated in the Corporate Senior Management Program (PADE) of the Center of Superior Studies of Universidad de Los Andes (ESE). He previously worked as head of control and audit, vice president of operations at Citibank and Bci manager, data processing. Adolfo García-Huidobro Ochagavia Marketing Manager Has 15 years experience in banking and 13 with Bci. He is a commercial engineer and master in economics and business management from IESE, Universidad de Navarra, Spain. He has worked in Bci as manager, planning and management control and director of Financiera Solución (in Peru). Mario Gómez Dubravcic Manager, Commercial and Branches Has 26 years experience in banking and with Bci. He is a commercial engineer from Universidad Católica. He has worked in Bci as manager of finance, manager of branches division and director of Financiera Solución (Peru). Pablo Jullian Grohnert Manager, Personnel Management Joined Bci in He is a commercial engineer from Universidad Diego Portales, having spent most of his previous professional career with Unilever.

47 Report on Corporate Governance and CSR Eduardo Paulsen Illanes Manager, Quality, Processes and Internet Has 21 years experience in banking and with Bci. He is a civil engineer from Universidad de Chile and graduate from Stevens Institute of Technology (USA) in electrical engineering. He also has a master in sciences degree in computer science from the same institution. In Bci, he has worked as manager, special projects and manager, virtual banking. Abraham Romero Pequeño Manager, Retail Banking Division Has 38 years experience in banking and 11 with Bci. He has a degree in business management and a graduate in the Corporate Senior Management Program (PADE) of the Center of Superior Studies of Universidad de Los Andes (ESE). He was previously vice president, retail banking at Citibank, commercial manager, Redbanc, manager, retail banking division, Banco de A. Edwards and manager, retail banking division, Bank Boston. Eugenio Von Chrismar Carvajal Manager, Finance and International Has 28 years experience in banking and 7 with Bci. He is a civil engineer from Universidad de Santiago and a graduate of the Corporate Senior Management Program (PADE) of the Center of Superior Studies of Universidad de Los Andes (ESE). He has previously been manager of finance and director, investment banking, at Citibank, Mexico, director of investment banking, Bank of America, Mexico and director of Financiera Solución (Peru). At the end of 2007, 143 managers and sub managers of Bci and its subsidiaries had a direct shareholding in the Company, amounting in total to 0.77% of the share capital.

48 06. Corporative governance & ethics Organization chart Bci Chairman Luis Enrique Yarur R. Chief Executive Officer Lionel Olavarría L. Manager, Adviser to the Chairman and Chief Executive Officer Humberto Béjares J. Manager, Risk Adviser Andrés Atala H. Manager, Secretary General Carlos Andonaegui E. Manager, Personnel Management Pablo Jullian G. Manager, Commercial and Branches Mario Gómez D. Manager, Support Areas Mario Gaete H. Manager, Finance and International Eugenio Von Chrismar C. Marketing Manager Adolfo García-Huidobro O. Manager, Bci Corporate Innovation and Programs Eduardo Paulsen I. Manager, Retail Banking Abraham Romero P. Manager, Corporate Risk Nicolás Dibán S. Manager, Planning and Financial Control Roberto Bustos K. Manager, Communications and CSR Marcela Bravo P. Comptroller Graciela Durán V. Legal Counsel Pedro Balla F.

49 Report on Corporate Governance and CSR Principal management committees The administration management committees are the most important executive level of administration for discussing business progress and ensuring the achievement of corporate objectives. The principal ones are the following: Ethics Committee Checks compliance with the rules of Bci s ethics code, resolve doubts arising from its application and promote the necessary corrections. Reports directly to the chairman of the Bank. Management Direction Committee Coordinates, directs and follows up the progress of the business and the plans and objectives of the balanced scorecard (BSC), proposing and providing the help necessary for ensuring the achievement of results, based on the board s objectives and policies. Strategic Planning Committee Defines the desired strategic position for the Bank in the medium term and determines the policy to follow for achieving that position, ensuring the coherence and direction of the annual plans, for which it revises the Bci businesses plan and the annual budget. Assets and Liabilities Committee (ALCO) Analyzes and manages the assets and liabilities structure, maintaining market risk within the defined limits, through protecting the capital, increase in the financial margin and guarantee of the suitable liquidity of Bci. Operational Risk Committee Approve, manages and provides continuity to the model, policies and strategies of operational risk management, approving control indicators and action plans for reducing it. Technology Committee Revises and adapts the technology strategy to the defined business strategy and the objectives of the balanced scorecard; takes investment decisions in accordance with the vision of the business and generates exploration initiatives and the adoption of new technologies that strengthen Bci s competitiveness. Credit Committees Resolve on national and international credit business and operations that fall within their discretionary powers and recommend to the board s executive committee those operations that exceed them. There are four Credit Committees whose powers are distributed according to the amount of the operation involved. Asset Laundering Committee Defines the complementary policies for preventing asset laundering. Responsible also for the analysis and resolution of suspicious cases and situations that have been reported to it or detected by the monitoring systems. Information Security Committee Establishes the policies, roles, strategies and takes decisions with respect to the technological risk and information security necessary for protecting Bci s assets. Personnel Management Committee Defines the guidelines and policies for explicitly linking people s performance and the organization of their conduct, skills and style with the strategic objectives and results committed within the balanced scorecard, within the framework of principles and values followed by Bci.

50 06. Corporative governance & ethics Corporate Governance Regulations for Bci s subsidiaries In order to harmonize corporate governance practices throughout the Corporation, Bci s subsidiaries have to adapt their internal policies to the following criteria: Functioning of the boards of subsidiary companies The board of each company should analyze information on business risks, improvements in control processes, reports from the comptroller s office, compliance officer, internal audit, legal counsel, etc. The chairman of the board also sends to the Bci s Directors Committee a copy of the minutes of the meetings in which any internal control report or events relevant to company are discussed. Strategic planning, follow up and responsibilities The board of each subsidiary appoints the persons who will participate in its corporate strategic planning process, later approving the plans decided at the corporate level. Directors of a subsidiary whose business do not contemplate the management of resources or compliance with third-party instructions, and who in turn have executive responsibility for some other company of the Corporation, assume the management of the subsidiary company with the maximum priority, on the understanding that, in the event of some conflict of interest between their functions as executive of the Corporation and position as director of the subsidiary, they should give priority to the maximum advantage for the Corporation as a whole.

51 Report on Corporate Governance and CSR THE BOARD SHALL CARRY OUT ANNUAL SELF-EVALUATIONS OF ITS FUNCTIONING In the case of subsidiaries that do manage third-party resources or comply with customers instructions, such directors carry out their management by always giving maximum priority to the interests of investors or customers, in accordance with the securities law. In the case of any conflict of interest, they should abstain, leaving the rest of the directors to decide on the matter. The board carries out annually a self-evaluation of its functioning. Audit and Risks Committees of subsidiaries The subsidiaries Bci Administradora de Fondos Mutuos S.A., Bci Corredor de Bolsa S.A., Bci Factoring S.A. and Bci Securitizadora S.A. shall have an Audit and Risks Committee of their boards, comprising three directors, preferably those outside the management of Bci. This committee informs the board of its activities. It knows and is informed about the risks detected in the internal audits and in the revisions made by the corporate comptroller, analyzing the corresponding action plans; it analyzes the reports of inspection visits and instructions made by the respective authority, and the reports, contents and procedures of the evaluation of the external auditors; takes note of suspicious conducts or frauds that have been detected and reports on the policies applied to prevent and detect potential asset laundering operations; resolves on conflicts of interest, and requires before every board meeting a certificate of the person responsible for the accounts of the subsidiary as to whether there have been any important accounting changes and their effects, and analyzes them if any.

52 06. Corporative governance & ethics Shareholders On December 30, 1994, a group of shareholders linked to the Yarur family, who at December 31, 2007 held 63.4% of the Bci issued and paid share capital, signed a shareholders agreement reaffirming their willingness to maintain the traditional unity and control of the Bank in the Yarur family. These shareholders thereby agreed to: Maintain control of the majority of shares in the Yarur family. Support the adoption of the corresponding resolutions, whether in shareholders meetings or board meetings that lead to compliance with the objectives that the Bci governance is based on and as described above. Act together at the Corporation s shareholders meetings. Ensure that the Bci governance maintains its traditional principles of independence, probity and integrity. Facilitate the necessary independence in the management of Bci in order to maximize the profitability of the Bank and the return for its shareholders. In accordance with the Corporations Law 18,046, the document containing this agreement is available to other shareholders and interested third parties.

53 Report on Corporate Governance and CSR Principal shareholders The principal shareholders of the Bci Corporación de Soluciones Financieras as of December 31, 2007 are: Name Shares % holding EMPRESAS JUAN YARUR S.A.C ,38 JORGE JUAN YARUR BASCUÑAN ,23 SOCIEDAD FINANCIERA DEL RIMAC S.A ,47 INVERSIONES BCP LTDA ,02 AFP PROVIDA S.A. PARA FONDOS DE PENSIONES ,77 AFP HABITAT S.A. PARA FONDOS DE PENSIONES ,50 AFP CUPRUM S.A. PARA FONDOS DE PENSIONES ,02 INVERSIONES JORDAN DOS S.A ,00 CITIBANK N.A ,96 TARASCONA CORPORATION ,47 AFP BANSANDER S.A. PARA FONDOS DE PENSIONES ,21 AFP SANTA MARÍA S.A. PARA FONDOS DE PENSIONES ,20 INVERSIONES MILLARAY S.A ,20 INMOBILIARIA E INVERSIONES CERRO SOMBRERO S.A ,10 LUIS ENRIQUE YARUR REY ,98 BCI CORREDOR DE BOLSA S.A ,94 BANCHILE CORREDORES DE BOLSA S.A ,78 LARRAÍN VIAL S.A. CORREDORES DE BOLSA ,70 INMOBILIARIA Y COMERCIAL RECOLETA SUR LTDA ,59 MODESTO COLLADOS NUÑEZ ,58 INVERSIONES VYR LTDA ,53 CELFIN CAPITAL S.A. CORREDORES DE BOLSA ,48 BICE CORREDORES DE BOLSA S.A ,48 AFP PLANVITAL S.A. PARA FONDOS DE PENSIONES ,45 INMOBILIARIA E INVERSIONES CHOSICA S.A ,38 OTHER SHAREHOLDERS ,72 Bci STAFF ,86 SUBSCRIBED AND PAID SHARES (authorized capital) ,00%

54 06. Corporative governance & ethics External auditors and credit-rating agencies External auditors The ordinary shareholders meeting of Bci held on April 24, 2007 agreed the appointment of the firm PricewaterhouseCoopers as external auditors of the institution for the year THE LAST ORDINARY SHAREHOLDERS MEETING RESOLVED TO RETAIN THE SERVICES OF THE CREDIT- RATING AGENCIES FELLER RATE AND FITCH RATINGS In order to ensure independence in the revision of the organization s accounting systems, the auditing firm has established a system of periodic rotation of the partner who each year directs the examination of the financial statements. PricewaterhouseCoopers has also performed advisory services for the Bank in other areas than the work ordered by the shareholders meeting.the amounts paid for these concepts during 2007 amounted to Ch$ 43,991,116. Among the external control entities that make revisions within the Corporation are the Superintendency of Banks and Financial Institutions, which is the senior regulator of banking activities, and the Superintendency of Securities and Insurance in those subsidiaries that the law assigns to its supervision. Bci s Miami Branch, located in The United States, is subject to the supervision of the US Federal Reserve Bank.

55 Report on Corporate Governance and CSR Credit-rating agencies As established under current legislation, issuers of securities to the public that issue debt instruments should contract the continuous and uninterrupted rating of these instruments by at least two rating agencies. The last ordinary shareholders meeting thus resolved to retain the services of the private credit-rating agencies Feller Rate and Fitch Ratings. Feller Rate has rated Bci as follows in recent years: Outloook Positive Positive Positive Time deposits up to one year Level 1+ Level 1+ Level 1+ Time deposits of more than one year AA AA AA Mortgage-funding notes AA AA AA Bonds AA AA AA Subordinated bonds AA- AA- AA- Common shares 1st Class Level 2 1st Class Level 2 1st Class Level 2 *The complete report relating to the rating assigned by Feller Rate to Bci can be found in Fitch Ratings has also rated Bci as follows: Trend Stable Stable Stable Long term AA AA AA Short term Level 1 Level 1 Level 1+ Mortgage-funding notes AA+ AA+ AA+ Bonds AA AA AA Subordinated bonds AA- AA- AA- Shares 1st Class Nivel2 1st Class Nivel2 1st Class Nivel2 *An in-depth report relating to the rating assigned by Fitch Ratings to Bci can be found on

56 06. Corporative governance & ethics Ethics The administration of the ethics code is the responsibility of the Ethics Committee, which reports directly to the chairman and sets the rules, regulates and monitors the practices which, according to ethical standards, are considered adequate for compliance with this and the application of the Company s policies. Ethics Code A fundamental principle is that Bci s staff always take into account in their actions the rules set out in the ethics code 4, in force since The code also establishes the procedures necessary to report violations to the principles contained in this text, plus the mechanisms for ensuring the absolute confidentiality of such persons. CASE STUDY: What do I do? Campaign The What do I do? campaign is an initiative launched in July 2007 to familiarize all Bci s staff with the ethics contents covering the actions of the organization and increase their knowledge and the number of consultations involving ethical aspects. The campaign was focused on generating new channels of communication, in addition to the regular quarterly meetings of the Ethics Committee, so that staff, apart from consulting the Ethics Committee, can ask questions, be informed and know what moral principles are to be employed in different cases. This initiative included the distribution of a book containing more than 40 practical cases on ethics presented to the Bank over the last 10 years. By the end of 2007, 22 consultations were made over the telephone Aló Qué hago? and [email protected]. The principal guidelines contained in this document are related to conduct in commercial operations, any kind of conflict of interest and the use of confidential information, personal behavior with reference to respect for the duties and rights of others, maintaining an attitude based on ethical values and harmonious relations. 4 If further information is required about Bci s ethics code, see the Report on Corporate Governance and CSR 2004 on the site

57 Bci carried out various activities to reinforce the knowledge of the ethics code, the implementation of associated conduct, and the control of their compliance. Report on Corporate Governance and CSR Ethics training All staff joining the Bank have to take part in ethics workshops, apart from receiving the general induction course, given by Bci managers trained for the purpose. 54 workshops were held in 2007 involving the participation of 1,020 staff. Total workshops organized Total No. of workshops Participants 374 1,020 1,394 Study of ethical values Bci obtained an outstanding place among the banks taking part in study of ethical values 5, made by Fundación Generación Empresarial and Gemenis Consultores to know to what degree companies have incorporated ethical principles in their management. ABIF code of conduct and good practices Bci adhered to the code of conduct and good practices of the Chilean Banking Association (ABIF) 6, published in June 2007, as evidence of its interest in progressing the building of long-term relations with its customers through the generation of mutual trust and transparency. This document establishes action guidelines for safeguarding and facilitating relations with customers and is complemented by different provisions included in manuals, internal regulations and Bci s ethics code. 5 Available on 6

58 Quality of working life There have been many examples of personal effort and development among Bci staff. Based on these, we have built a history together where professional and family lives are compatible.

59 we grow together... Report on Corporate Governance and CSR Stable work, development and opportunities

60 07. Quality of working life Structure The corporate personnel management is responsible for achieving the objectives set by Bci with respect to its staff and their families. One of the highlights of 2007 was the restructuring of this management area and the creation of five specialized areas: Processes management Development, organization and training Personnel development Business partners Labor relations Our Commitment To maintain stable working relations with all those working with responsibility, quality, capacity and commitment with Bci s results. To promote an improvement in the quality of life of staff and their families. Emphasis will always be placed on ensuring a dignified level of personal and family lives of all those working for the Company. To provide opportunities and propose professional challenges to people working for the Corporation, according to their personal skills and merits. To make a constant effort in the formation and training of its members, tending to complete their knowledge and skills and at the same time motivate their growth as persons. To motivate, recognize and reward individual effort, progress and capacity. To recognize the necessary market limitations in which it operates. To ensure that every person on the permanent staff has a work contract.

61 The staff and their families are the fundamental pillar in Bci s performance Report on Corporate Governance and CSR Employment and turnover A total of 9,541 people work in Bci s companies. This implies that, taking into account the respective family groups, some 38,000 people receive directly the benefits provided by the Company Evolution of the workforce 10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1, ,366 Note: The subsidiaries Banco Nova and Proservice are included from % of staff have an average service of over 20 years, 14% more than 15 years, and 25% over 10 years, with the Bank. In the case of executives who report directly to the chief executive officer, their average length of service in the organization is 17 years. Average turnover %* 9, Corporation turnover November November month average 2.1 *The turnover percentage shows the percentage of total staff who have left the organization in the last 12 months, as a monthly average

62 07. Quality of working life Remuneration The following is a detail of Bci remunerationns in Position Persons Fixed remuneration Variable remuneration Chief executive officer & managers reporting directly 16 77% 23% Other managers % 12% Executives 3,846 84% 16% Administrative & services 3,247 94% 6% Total 7,229 88% 12% Nota: No incluye colaboradores de Banco Nova de Bci y Proservice. Bic has also paid the following amounts in staff remuneration and expenses over the last three years: Year Billions of pesos The amount paid with respect to staff remuneration and expenses showed a significant increase during 2007 due to the growth in total staff, their adjustment for inflation and the increase in salaries.

63 Report on Corporate Governance and CSR Women in Bci The presence of women in the Bci workforce has grown in recent years. The percentage of supervisory positions occupied by women is 19.4% of all department heads, equivalent to 243 out of a total of 818 similar positions. In the family area, Bci also emphasizes assistance to its staff in balancing their family and professional responsibilities. In order to promote an increase in protection and care for the family, the following benefits were announced in 2007 for staff with children: Gift sets with articles for baby care plus all the forms and instructions for requesting the benefits included in the Bci Contigo program. Gradual incorporation following post-natal leave. During the first month after returning, mothers may leave work at 2 p.m.; subsequently this leaving time is extended by one hour a month until the fourth month when the leaving time is 5 p.m. Women department heads ONE OF THE HIGHLY-VALUED INITIATIVES BY BCI MOTHERS WAS THE GRADUAL INCORPORATION IN THEIR WORK FOLLOWING THE END OF POST-NATAL LEAVE

64 07. Quality of working life The principal objective of Bci s performance management system is to create a culture of merit that facilitates professional development. During 2007, 36 managerial position opportunities were created of which 69% were filled by internal staff. Development and training Bci has continued with its development strategy of those working for the organization in order for them to progress according to their abilities, skills and merit. It carried out in 2007 the training and learning plan defined according to the strategic priorities of the business and of each area. The objective set was to generate the processes and bases that permit the management of knowledge and intellectual capital, preparing initiatives for developing, transmitting and spreading throughout the Company the critical knowledge that supports the staff in their daily work and personal development. The total investment in training in 2007 was more than Ch$1,600 million, for the continuous development and certification of the work skills of the staff, in order to comply successfully with the organization s objectives. Training indicators Total No. of hours / workforce Santiago staff trained / Santiago workforce 85.3% 86.5% 85% Regional staff trained / regional workforce 97.8% 98.1% 88% *This information does not include Banco Nova de Bci and Proservice The performance evaluation process is a formal stage of Bci s performance management system, which is applied annually to all staff. This evaluation contributes to generating individual action plans for development and the improvement of those conducts necessary for obtaining results of excellence. The principal objective of the system is to create a culture of merit that facilitates professional development. 36 managerial position opportunities were generated in 2007, of which 69% were filled by internal staff. Managerial promotions generated in 2007 Type of cover N % Internal 25 69% External 11 31% Total %

65 Report on Corporate Governance and CSR Internal communications Bci promotes levels of dialogue and feedback between heads and staff to maintain the flow of information with respect to the progress of the business and state of progress in achieving strategic targets. Different tools and communications instruments are used for this dialogue, like: The Bci Te Escucha Program In November 2007, an internal communication tool called Bci Te Escucha was introduced. This is an open, expedite and confidential channel for reporting irregularities and making enquiries, and acts as a complement to the possibility that staff currently have of approaching their direct heads. A telephone line has therefore been created which operates 24 hours a day throughout the year. The requirements are received and analyzed by a personnel management team that administers and ensures confidentiality. By the end of 2007, 47 calls had been made and the principal requirements were related to complaints, the working climate, Evolution of organizational climate survey 80% 70% 60% 50% 40% 30% 20% 10% 0% 63.3% 67.7% 71.3% 78.6% 76.7% 77.1% leadership and enquiries about the payment of commissions and benefits. Listen to Staff Program In order to generate a greater proximity between managers and staff, the listen to staff program was developed during 2007, consisting of meetings where dialogue is encouraged based on trust and transparency. The idea is to help those working for the Bank to remove any type of obstacle that prevents them from performing their jobs satisfactorily and in an appropriate working climate. 53 meetings were held in 2007, led by the chief executive officer and the corporate managers, and 420 members of the staff took part. The main subjects were the working climate, customers and business opportunities. Organizational Climate In late 2007, the Pontificia Universidad Católica de Chile made a survey of the organizational climate, with 97% of the staff taking part. The results show an average of positive responses of 77%, with a general satisfaction level of 92%. As a result of this survey, a focused task was carried out with the support of the business partners and the organizational development team, and activities and courses will be organized to consolidate a culture based on the quality of service to the internal and external customer, in the units showing responses below the average. Source: Organizational climate survey carried out by Pontificia Universidad Católica de Chile.

66 07. Quality of working life Benefits and internal social network Bci has been concerned about maintaining an extensive internal social network in order to provide support and solutions to psychological, family, working, social and health problems that might affect its staff. The activities carried out in 2007 included the following: Bci Contigo Program The important point of this initiative was the launching of the Bci Contigo program, by which the benefits already provided are grouped together and other new ones created. This program represents an investment of approximately Ch$9,000 million. CASE STUDY: Bci Contigo Program A survey was made in 2007 of the staff s knowledge of the benefits the Bank offers and their level of satisfaction. The Bci Contigo program was based on these results, a program grouping together all the initiatives and benefits offered by the Company to its staff, divided into three segments: Family, Health and Recreation. New Benefits Increase of the amounts and number of existing scholarships. Te Quiero Protegido Program. Extension of Christmas gifts for children of executive and administrative levels from 0 to 9 years of age. The children benefiting rose from 1,056 to around 3,000. Gradual return to work following post-natal leave. An additional day s post-natal leave for fathers. Birth gifts for staff children. Increase in school-fee bonus for disabled children from UF 10 to UF 20. Special leave of one day a year usable in two half working days. Staff birthday leave after 3 p.m. Special bonus of Ch$1,000,000 gross for staff on a salary of less than Ch$1,000,000 and with more than a year s service, payable in three instalments in December 2007, 2008 and Provision of corporate uniforms to 1,000 staff.. Family These initiatives are directed to support and encourage the development of family roles and care for family life. Education support Bci offers the following benefits directed to supporting the education of staff children and the complementation of their own education: American Field Service scholarships for studying English in the United States. These increased to three annually from Savings accounts with balance (of between Ch$200 and Ch$400 thousand) for staff children with the best average marks in primary and secondary education. Savings accounts with Ch$400,000 for staff children having outstanding marks in the national university-entrance examination. 50 scholarships of UF50 for university students with high academic marks and with difficulties in financing their studies. Annual bonus of UF10, except for the subsidiary Análisis y Servicios (UF5) and Banco Nova de Bci (UF3.37) for each child of school age as recognized by the Caja de

67 Report on Corporate Governance and CSR Compensación Los Andes (from 4 to 25 years old if continuing to study). This bonus was paid to 2,724 staff in 2007, equivalent to UF30,565, benefiting more than 3,200 children. Scholarships for further education for staff members who have not completed their formal education. These scholarships rose to 160 in School-fees bonus of UF10 (except for Banco Nova and the subsidiary Normaliza S.A. which receive UF5) to staff studying a profession related to the banking business. 501 employees benefited from the Staff Education Bonus in The strength of the family For those staff who, by personal decision, do not make use of the legal benefit of nurseries for children under 2 years old, the Company offers the alternative of requesting a bonus of Ch$600,000 gross included in their remuneration. This bonus is paid for one year only. Employees benefiting from this bonus during 2007 numbered 197. Bci Te Acompaña Bci Te Acompaña is made up of different programs for assisting staff in different areas. The most important are focused on support for the acquisition of their own home. Bci s housing savings program grants a special subsidy to complete the prior savings and meet the expenses involved in purchasing a home. During 2007, 300 employees benefited from this contribution and also received a mortgage loan with a preferential commission rate for the purchase of their first home. In addition to this subsidy, a housing bonus of UF41.89 is given to staff who buy their home. 260 employees received this benefit during Staff assistance In October 2007, the Te Quiero Protegido program was presented to all the staff of the Bci Corporation and their family groups. It consists of a service of confidential professional orientation, which is voluntary for the employee and their dependent families. It is designed to help resolve doubts or personal, family, legal and financial problems. The service offers professional help outside the working environment. The Te Quiero Protegido service is free to beneficiaries and telephone calls are also free. To December, one in every five employees had used the program, whose level of satisfaction has reached 94.8% (according to the program s self-evaluation surveys). Health During 2007, Bci offered multiple alternatives for improving health cover, including: Free annual vaccination against influenza. 4,547 employees were vaccinated in Preventive glycaemia and cholesterol examinations, smoke addiction workshops, etc. 1,218 employees received preventive check-ups in Complementary corporate health insurance plan for 5,500 Bank employees. Collective agreement with the health-cover institution, Colmena Golden Cross. Agreement for discounts on purchases of drugs at two large pharmacy chains, agreements with clinics, and dentistry and optician centers. Serious illness fund which helps to cover expenses in cases of serious illnesses or prolonged treatment, which is not covered by the health-cover institution. The labor welfare department grants exceptional loans for health contingencies through consumer loans at preferential rates. Recreation As of December 2007, Bci had 89 current agreements, with special discounts for its staff, at places as varied as theatres, children s entertainment centres, gymnasiums and sports clubs, universities, hairdressers, vacation cabins, hotels and centers, etc.

68 07. Quality of working life Support program for retirement and pension advice Bci has developed a program of pension advice that provides specialized and personalized information free of charge to staff and their direct families. In addition, every month it sends an informative sheet explaining the Chilean pensions system, in order for the employee to have the necessary tools for taking good decisions with respect to their savings. National Olympics and 70 years celebrations With the participation of over 5,700 people comprising staff and their families, the 5th National Olympics were held in October There were 600 competitors, grouped into 12 alliances. This activity ended with an Olympics closure party in the Santiago Arena attended by more than 10,000 people. This occasion was used to commemorate the 70 years of the Bank, culminating in a private performance by the Puerto Rican singer, Chayanne. Bci Senior Program The creation of the Bci Senior program was formalized in 2007, a group consisting of 42 former Bci managers and sub managers who had worked for more tan 20 years in the Company. In order to maintain and grow this link, Bci Senior seeks to maintain a channel of permanent contact with the Company, which constitutes a solidarity level between its members and support the Company s corporate social responsibilities.

69 Report on Corporate Governance and CSR Labor relations The Corporation has 280 people related to one of the 12 unions, which represents 2.9% of the Company s workforce. Region Bank Normaliza Proservice Total Tarapacá Region Antofagasta Region Atacama Region Coquimbo Region Metropolitan Region Valparaiso Region Libertador General Bernardo O Higgins Region Maule Region Bío Bío Region Total

70 07. Quality of working life Job safety In 2007, Bci developed and published an integrated corporate policy for security, occupational health and the environment in order to manage these matters globally and transversally within the organization. Bci s commitment with these principles and its concern about maintaining a labor environment of excellence is reflected in the results obtained in the last twelve months, which show consistently lower accident rates than the industry s rate. Constant training in occupational safety and health has contributed to maintaining work safety levels within ranges that place the Company below the average of the relevant banking competition. In the last three years, Bci recorded 60 accidents as its annual average. Complementing this, 50% of the workforce exposed to work risks received training in 2007 in safety, health and the environment, with over 250 courses, workshops and on-site talks. In addition, more than 10 joint committees on order, hygiene and safety collaborated permanently, from Arica to Punta Arenas. In 2007, Bci s accident rate7 de Bci was 0.97% compared the average of 3.76% for the whole banking sector, affiliated to the Mutual de Seguridad of the Chilean Chamber of Construction. The accident frequency rate8 fell by almost a point, from 5.17 in 2006 to 4.39 in Accident rate Occupational accident frequency rate 1.20% 1.00% 0.80% 1.23% 1.21% 0.97% 6% 5% 4% % 0.40% 0.20% 0.00% % 2% 0% Number of employees suffering accidents / Total number of average annual workforce. 8 Number of accidents per million hours worked

71 Report on Corporate Governance and CSR Personal health risk program In 2007, Bci, jointly with the Mutual de Seguridad, carried out health examinations of 1,218 staff (17% of the total workforce), principally oriented to preventing cardiovascular illnesses, smoking addiction, obesity, etc. As a result, a clinical attention plan was designed with nurses on the premises and the on-line provision of health information. STAFF, THEIR FAMILIES AND THE COMMUNITY ENJOY BEETHOVEN S NINTH SYMPHONY, THE CHORAL, AT THE SANTIAGO MUNICIPAL THEATRE

72 Customers and suppliers Bci develops relationships of trust and respect with its customers and suppliers, with long-term projections and high standards of quality and transparency.

73 mutual benefit... Proximity to our customers and suppliers Report on Corporate Governance and CSR

74 08. Customers and suppliers Customers Customers are for Bci the basis of the Bank s development and its commercial relations with them should therefore be maintained with a long-term perspective. Businesses and activities Bci provides its customers with credit, savings, insurance and investment services, offering them financial products for individuals, business people, small and medium enterprises (SME) and large corporations and institutions. Products and services Retail area National & international financing Investments Insurance Products for entrepreneurs & SMEs Mortgage loans Checking accounts Sight accounts Credit & charge cards Savings accounts Corporate area Short & long-term financing Foreign trade services Investments Payments Collections Leasing Factoring Banking transaction financial services Financial consultancy Insurance

75 Report on Corporate Governance and CSR Products and services Retail area The mission of Bci s retail area is to provide an integral attention to its customers addressed to their individual needs, in order to cover their requirements proactively and offer a service of excellence in support of their business development. It also offers its customers the channels necessary for facilitating relations between them and Bci, in order to remain as their principal bank. Specific operating units Retail Banking covers the largest number of Bank customers who are mainly composed of individuals who are attended by close to 1,000 executives. These respond to the requirements of each customer, either face-toface or by telephone, through a network of 273 direct-attention offices between Arica and the Antarctic. Banco Nova de Bci is focused on the country s emerging segment made up of individuals and micro-businesses who receive support and advice from 73 offices dedicated to this segment in Chile in extended banking hours, from 8 a.m to 4 p.m. Businesses Banking supports the development and internationalization of small and medium enterprises, making Bci an important benchmark in the domestic market for this business sector. These customers are attended at 15 business centres which offer tailor-made services. TBanc is a remote banking services office. With 10 years operating experience, it is a unique attention model in Chile. Through remote assistance, via internet or telephone, it enables customers to carry out all their banking transactions from wherever they are and at any time of the day, with optimum security and speed. Preferential Banking has exclusive offices for high-income individuals and offers agile and personalized attention, with specialist executives in terms of investments. Its service coverage last year extended to six platforms in the country. Complementary operating units Bci Inversiones groups together all the Bank s resources for offering investment products and services to the public. This recent initiative provides the global management of investments, assuming the responsibility for positioning Bci among the top three players in the market in the management of customers investments. Bci s Agreements and Alliances Management offers integral financial solutions through its business networks with companies, institutions and groups in Chile, seeking mutual benefits and long-term relations. The specific and complementary business units have the support of the following communication channels for reaching the customer: Proservice, Telecanal and the Bci web site.

76 08. Customers and suppliers Corporate area The corporate area has the mission of developing and maintaining profitable long-term relations with its customers through initiatives that permit the creation of value. Its constant strategy is to maximize the contribution to the Corporation and its shareholders, ensuring the maintenance of a low level of risk and offering products and services of commercial and operative excellence. Specific operating units Corporate Banking is a segment specialized in large economic groups, holding companies and multinational companies whose annual sales exceed a million Unidades de Fomento. It is formed by executives specialized in products and services for the financing of sophisticated assets. Its attention model is based on managing the relationship from a global view of the customer in order to respond effectively to the complexity of its businesses. Companies Banking attends customers with annual sales of over 500,000 Unidades de Fomento, considered as large companies, with a sub-segmentation of medium companies oriented to customers with annual sales of between 50,000 and 100,000 Unidades de Fomento. This unit attends only legal entities and offers [PW1]products and services based on an attention model that integrates financial consultancy, financing in different currencies, terms and methods and the whole range of services of transactional banking with payment, collection and information services. Real Estate Banking is oriented mainly to the large home and office construction companies and offers a wholesale mortgage loan channel through Bci Home, which supports the sales of the properties built. Complementary operating services The corporate area complements its operations with the leasing division and the subsidiaries Bci Factoring, Bci Asesoría Financiera and Bci Administradora de Fondos Mutuos. It also has the direct support of the numerous services provided by Electronic Banking.

77 Report on Corporate Governance and CSR Distribution of the loan portfolio Bci s loan portfolio is distributed over a large debtor base and different sectors of the economy, thus reflecting the Bank s portfolio diversification policy. As an example, we show the detail by area of business of the Bank s customers with commercial loans as of December 31, 2005, 2006 and 2007: Diversification of the commercial loan portfolio (% of total loans) Bci Sector December 2005 December 2006 December 2007 Financial & other establishments Real estate Exploitation of real estate Electricity, gas, steam & water Transport & storage Services provided to companies Wholesale trade Fishing Personal & household services Forestry & agriculture Non-specified Manufacture of metallic products Contractors,assembly & civil works Educational establishments Retail trade Communications Automobiles Social & related comercial services conexos Retail trade: SW Retail trade: large stores Food products Institutes, services & sanitation establishments Our commitments with you, Bci at the Service of its Customers manual In line with the commercial policies, the manual Our commitments with you, Bci at the Service of its Customers was launched in September, a tool for promoting long-term and mutually-beneficial commercial relations between the Bank and its customers (individuals) through the provision of information and guarantees of transparency, security and trust that enables them to take decisions in an informed way. The manual also refers to the safeguarding and confidentiality of customer information and responsible marketing, invoking the rules set out in the Chilean Code of Advertising Ethics 9. 9 For further information on the manual Our commitments with you, Bci at the Service of its Customers, visit ManualBciBuenasPracticasdos.pdf

78 08. Customers and suppliers Quality of service One of Bci s priorities with respect to the quality of its products and services is to ensure that these properly and promptly meet the customer s needs. Constant monitoring of satisfaction is a key piece and various mechanisms are employed to achieve this. In 2007, more than 50,000 telephone contacts were made to provide a general evaluation of the Bank s service, the unknown customer methodology was adopted and a process was begun called Listen to Customers consisting of meetings to understand customers needs in order to improve new products and services. 66 listening meetings were held in 2007, led by the company s managers. Complaints management system Bci general service evaluation 50% 41% 40% 32% 30% 20% 44% 45% Bci has begun a complaints management system (SAR) by which customers and the public can express their doubts with the certainty that they will receive a clear and timely response. Average response times declined from 23 to 10 days despite the 35% increase in the number of complaints in This is mainly explained by the start-up of a centralized follow-up program that is constantly monitoring the position of complaints, suggestions and congratulations received, in order to ensure a clear and timely solution to each one of them. In February 2007 also, in line with its policy of transparency of information, Bci began a collaboration with the Superintendency of Banks and Financial Institutions to prove a new work tool based on web technology, for the processing of cases presented by the public and whose main objective is to achieve a reduction in response times and also allowing a follow-up by the interested party through the web site of the Superintendency. As of December 2007, this work method, together with the implementation of the digital signature, permitted improving the revision process and signing of the presentations, thus avoiding steps that slowed down the response of the regulator. Customer defense system Bci is one of the banks adhering to the customer defense system put into effect by the Chilean Banking Association 10, by which customers of participant banks have a dispute resolution system. 10% 0% -10% -7% -4% -5% -6% Excellence: % marks of 7 (out of 7) Insufficient: % marks of 4 or less ISO 27,001 Certification In the area of security of information, Bci obtained the ISO 27,001 certification, making it the first bank in South America to meet this process, with incidence in five base components which are confidentiality, integrity, availability, planning, acting and verification. 10

79 Report on Corporate Governance and CSR Suppliers Performance targets regarding relations with suppliers are the responsibility of the Corporate Procurement and Suppliers Management, which was created in 2007, and the Central Services Management which is responsible for paying suppliers. The Procurement Management in 2007 concentrated on the preparation and approval of a suppliers policy, the making of a survey to measure service perception and satisfaction, the formalization of criteria for evaluating suppliers and the formation of a communication and information channel for them (web portal). Suppliers policy Bci approved a corporate procurement policy to provide staff with guidelines governing the processes of acquisition of products and services, in order to make possible a management style that promotes objectivity, transparency and excellence in the process. Suppliers survey The first survey of supplier satisfaction was also carried out in order to measure the perception of and satisfaction with the service provided them by Bci. 68 questionnaires were completed with information from the suppliers data base. The principal results of the survey were: Half the suppliers gave a mark of 7 for the reliability and facility of Bci in doing business, while just 7% considered the service to de deficient. 17% of the suppliers said that they had had some problem with the Bank. One of the principal complaints was payment delays. The challenge for 2008 is to introduce the necessary improvements in response to the survey s findings in order to continue with the design of processes that meet the needs of suppliers. YES 17% Has had problems with the Bank. Has not had problems with the Bank. N0 83%

80 08. Customers and suppliers IN ORDER TO IMPROVE RELATIONS WITH ITS SUPPLIERS, BCI IS DEVELOPING A SERIES OF INITIATIVES, FROM THE CREATION OF A PROCUREMENT MANAGEMENT TO THE PUBLICATION OF A POLICY AND WAYS TO IMPROVE THE DIALOGUE WITH THEM Internal and external portal In late 2007, a web site was introduced to provide information on the purchasing process, both for suppliers and staff of the Bank. In the corporate site, there is a space for suppliers to inform themselves of the procurement policy, have a formal channel for suggestions and complaints and obtain a form for qualifying as a supplier. A new section has been added to the portal for staff informing them, among other things, of the procurement policy, the register of qualified suppliers, catalogues of products and services and the organization s purchasing process. Criteria for evaluating suppliers Another important focus of the Procurement Management was to establish a formal process for the evaluation of new suppliers, in order to check on their selection so that they comply with the conditions and requirements established in the profile of suppliers. Distribution of suppliers Of the total universe of Bci s suppliers, 97% are Chilean and just 3% international. The following shows the distribution by heading. Distribution by heading 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 14% General purchases 21% Payments to suppliers 8% Real estate Marketing Technology Operations As stipulated in the procurement policy, invoice payments should be made within the defined term of 7 days. Progress was made in this matter in 2007 and some necessary changes were made to the payment process. It is expected that in 2008 there will be high degree of alignment with this standard, in order to comply with the payments policy. 18% 39%

81 Report on Corporate Governance and CSR CASE STUDY: CSR program an SME management model (BID- Acción RSE-FUNDES-Bci) In 2007, Bci, Acción RSE, the Interamerican Development Bank and Fundes finalized the CSR program A management model for SMEs begun in 2006, to permit small and medium enterprises related to Bci to have access to the benefits and advantages of good business practices. 10 Bci suppliers took part in this program. These had the opportunity to know, apply and incorporate in their management, CSR methods and tools created specifically for them. The companies managed to identify their principal groups of interest, their expectations and to implement action plans. Most of the initiatives were focused on the following plans: Areas of action plans Nº of companies Evaluation of customer satisfaction & carry out improvements 6 Implement and publish an ethics code 5 Publish the company s principles & values 4 Incorporate CSR elements in relations with suppliers 4 Implement a program of development of suppliers 4 Implement a human resources policy 4 Risk prevention program 4 Training in ethical sales practices 3 Communications plan 3 Annual training plan incorporating personal development 3 Strengthen work/family relationships 2 Establish communication channels with personnel 2 Motivate voluntary work by personnel 2 Others 14 Among the principal challenges arising from this project is the need to grant to participants the recognition they expect, both in their image and in the concrete business that Bci shares with them in their experience of the implementation of CSR.

82 Community As a result of the spirit of solidarity with its social surrounding, the Bank launched initiatives focused on senior citizens, the development of SMEs, the support to culture and the strengthening of education.

83 social commitment... To increase social, cultural and economic capital Report on Corporate Governance and CSR

84 09. Commitment with the community Support for senior citizens and children at social risk For more than 20 years, Bci has given support to the Corporación de Crédito al Menor and the Nocedal Orchestra as part of its actions in support of the community. However, this support reaches a small number of people so Bci considered the need to find some society group that does not receive the necessary support. A survey made by TIME in 2005 showed that senior citizens were the most needy, thus leading Bci to decide to commit its efforts to the Fundación Las Rosas through actions of voluntary service, communication and financing. The Communications and Corporate Social Responsibility Management is responsible for achieving the objectives related to social contributions. Bci and Fundación Las Rosas In 2007, Bci signed a long-term solidarity alliance with Fundación Las Rosas in order to make society aware of the value of senior citizenship within families. The agreement consists of a program of corporate voluntary work so that Bank staff visit some of the 40 homes of the foundation and so accompany more than 2,000 old people who live there. It also carried out a campaign for attracting new partners and an annual donation for financing the costs of future work. Thanks to this initiative, carried out between October and November 2007, the number of partners increased by 15% over the same period of the year before. Corporación Crédito al Menor The Corporación de Crédito al Menor (CCM) was formed in 1990 by a group of Bci staff. Its purpose is to provide shelter for girls who have suffered some kind of serious maltreatment and are at a high degree of social risk. 2,200 members of Bci s staff participate in CCM as partners who not only make a monthly financial contribution but also help in the girls formation and foster-parent some of them. Bci supports most of its functioning ecnomically. The corporation has two homes, one at La Pintana in Santiago and the other in Temuco, which provide a home, education, meals, health, recreation and values formation to 88 girls from the poorest sectors of the population. As most of the girls have been abandoned or suffer from severe parental dysfunction, they have also been helped with technical-professional training since 2007.

85 Report on Corporate Governance and CSR Entrepreneurship: small and medium enterprise (SME) Because of the importance of SMEs in the country s development and because they have historically had to face difficulties in obtaining financing from local banks, Bci designed and carried out the Nace and Renace programs in These seek to resolve the obstacles faced by people who start a business for the first time or those, who having started a business, suffer problems and seek the opportunity to re-start. Multimedia guide to enterprise One of the notable aspects of the year was the publishing of the Multimedia Guide to Enterprise which provides entrepreneurs with a manual that shows the steps that have to be taken by those starting a business. The manual is available in a multimedia CD and is the first effort of its kind made by a company. Nace Program The objective of this program is to provide financial support and advice to entrepreneurs starting up a business. In its second year, it benefited 317 entrepreneurs and loans were approved for a total of Ch$3,180 million, with an average amount of Ch$6 million. In 2007, 121 volunteer executives of Businesses Banking advised those chosen in the preparation of their business plans for opting for the benefits of Bci s Nace program. Renace Program The Renace program provides financial support and advice to those business people, owners of SMEs, that need to be reincorporated into the system after having had difficulties in developing their businesses. This program offers them, initially former Bci customers who have shown a willingness to repay, a second opportunity to do business. Bci provides support as the source of bank financing, through the creation of a fund of Ch$10,000 million, and, provides specialized advice structured according to the needs of each customer. One of the most significant internal elements of the Renace program is the volunteer work of executives of Bci s SME Businesses Banking, becoming advisers in the area of management and financing of the business. At November 2007, the program benefited 193 customers, with a total volume of loans approved of Ch$2,600, whose average amount of loans granted was Ch$10 million. During 2007, 73 voluntary executives of Business Banking afvised and accompanied customers of Bci s Renace program.

86 09. Commitment with the community Mirada Empresarial program For more than four years, Bci s Businesses Banking has supported small and medium businesses through a cable-television spot. Through this initiative, a pioneer in Chile, personalities from the local business and financial community provide effective tools for supporting the successful progress and development of the businesses of SME entrepreneurs. SME legal manual The SME legal manual was published and distributed by Bci in 2006 and seeks to provide a basic orientation and support for consolidating the management of small and medium enterprises. Since then, some 3,500 copies have been handed to SME customers, as well as to whoever asks for them. Outstanding Businessman Prize Since 2001, Bci and its SME Businesses Banking award a prize to an outstanding customer who, with effort and vision, has managed success in their business. The Bank has so far recognized 20 business people from different productive areas in the country who have been outstanding for their entrepreneurial capacity, transformation processes, work with the community, development and results. EmprendeUC National Prize The objective of this initiative, associated with the Universidad Católica de Chile and sponsored by Bci, is to motivate the birth of new projects in key industries for the development of the Chilean economy. In 2007, the following projects won prizes as part of the EmprendeUC National Prize: First place: Urban Games, design and manufacture of quality urban infants games and complementary equipment, for providing the best play experience. Second place: Fourth Design, a different way to design walls. Third place: Vitrazzo, high-end design market surface solutions made from recycled glass, for architects and internal decorators. Fourth place: Tribiologylab, monitoring service of the condition of equipment through analyses of greases, anti-freeze solutions, fuels and lubricants. Fifth place: Viajeras de Colección de Editorial Nomade, first and only travel magazine for women in Chile and South America.

87 Report on Corporate Governance and CSR Commitment with education Education is one of the principal tools to break-through the circles of poverty and to obtain better job opportunities. Bci supports various initiatives, mainly related to superior education and the search for these professional dreams. Chair of family businesses Jorge Yarur Banna - ESE For the sixth consecutive year, Bci has supported Chilean family businesses by sponsoring the activities of the Jorge Yarur Banna chair of family businesses, set up in memory of the man who was chairman of the Bank for close to 40 years. These activities are carried out by the Center of Superior Business Studies of the Universidad de Los Andes and consist of the investigation and spread of the best practices that permit family businesses to professionalize their management and be able to hand them on successfully through the generations. More than 2,500 business people, many of them customers of Bci, have benefited from their participation in more than 40 forums, seminars, courses, conferences and other activities organized by this chair. Superior financing Banco Nova de Bci Banco Nova, DuocUC and International Finance Corporation (IFC) of the World Bank came together to help young people in tertiary education who do not qualify for the credit system guaranteed by the state or cannot meet the present credit terms in the financial market to carry out their studies. The three units therefore have committed Ch$27,000 million to be administered over seven years. University study scholarships Conscious that education is a fundamental part of young people s development and progress, Bci gave 12 university scholarships to students in careers such as medicine, civil engineering, music and law, through various social organizations. Digital Friend In order to contribute to digital literacy, Bci in 2006 signed an agreement with the Committee for the Democratization of Computer Science (CDI), a non-profit-making international organization whose objective is the implementation of Schools of Computer Science and Citizenship for spreading access to technology through specialized methods. Up to the end of 2007, five training cycles had been developed, each lasting three months, from which 141 Bci staff and other company students have graduated, and in which 43 volunteers took part.

88 09. Commitment with the community Different culture Culture is a source of inspiration, the transport of people s roots and the product of spiritual absorption and admiration. It permits the development of the soul and knowledge of history, lives and processes. Bci promotes these things as part of personal and collective growth. Bci art collection Bci has a valuable art collection comprising close to 90 works by Chilean artists. In order to share this collection, a guided visiting program was begun in mid 2007 to the Bci private art collection, called The most outstanding artists in Chilean painting, which the Bank houses in its corporate office building. The purpose of this initiative is to invite the community, customers, staff and their families, to see a collection bringing together different artistic expressions that reflect different times in the history of Chile and its people. Six visits have so far been made, involving 120 people. Nocedal Orchestra Bci has financed the Nocedal Infants Orchestra of La Pintana, Santiago, since This is made up of 62 children whose ages range from 8 to 17. The music classes they receive are individual, in order to progress quickly in dominating the required technique. Nine members of the Nocedal Orchestra became part of the Metropolitan Student Symphony Orchestra in This is formed by the most-talented musicians from the infants orchestras of the Metropolitan Region. Publication of books Since its foundation, Bci has supported the arts and culture as a way of promoting Chilean heritage, while promoting the country s identity. It has therefore supported the preparation and distribution of the following books: Iquique, Puerto del Salitre, the second book in a series highlighting Chilean places that have been declared as Heritage of Humanity. This book shows the history and geography of Iquique, plus the two nitrates offices that were declared by Unesco as Heritage of Humanity, in the industrial archaeological category. Familias al fin de la Tierra. This book is an invitation to cover the life histories and graphic testimonies of 20 families at the end of the world, plus the culture, occupations and heritage of Chile.

89 Report on Corporate Governance and CSR Concerts As part of its commitment to the dissemination of art, Bci supports the financing of the activities of Santiago s Municipal Theatre. Also, during 2007, more than 5,000 people attended a free performance of Beethoven s Ninth (Choral) Symphony at the Parque Aaucano in Las Condes. Bci also gave its first gala performance with a production of The Magic Flute, an activity forming part of CSR Different Culture program. The principal customers and representatives of the worlds of business, politics, religion and culture were our guests. Soul of Russia in its Ikons exhibition Bci supported the exhibition of Russian art called Soul of Russia in its Ikons at the Cultural Corporation of Providencia where works were displayed belonging to one of the best collections of the Russian State National Park Museum. El Mar...una mirada a lo Nuestro exhibition Bci sponsored the exhibition El Mar...una mirada a lo Nuestro of the collection of the Naval and Maritime Museum and technological equipment of the navy s hydro-graphic and oceanographic service, and of its reports.

90 09. Commitment with the community Donations In July 2005, the Corporate Governance and Corporate Social Responsibility Committee set the criteria on which the Bank s donations policy is to be based. This expense in 2007 amounted to Ch$1,103 million. Donations (millions of pesos) Cultural Educational Social Total 943 1,103 In addition, the Communications and Corporate Social Responsibility Management has a budget of Ch$400 million for the implementation, communication and maintenance of the Bank s permanent support activities as described above.

91 Report on Corporate Governance and CSR BCI MAINTAINED ITS COMMITMENT WITH SOCIETY THROUGH ACTIVITIES RELATED TO SUPPORT FOR SENIOR CITIZENS AND INFANTS, AND FOR SMALL AND MEDIUM BUSINESSES, EDUCATION AND CULTURE

92 The environment Bci developed a program of environmental conservation and education in the Pan de Azúcar National Park, being consequent with the constant search to contribute to society.

93 environmental commitment... Harmony with nature Report on Corporate Governance and CSR

94 10. The environment Environmental commitment Environmental impacts are not a crucial matter in the activities of the banking industry as it does not generate large direct impacts or emissions of CO2 or hazardous waste. However, in 2006, Bci assumed the commitment of managing its possible impacts and of using clean technologies, like environmental protection criteria in all its activities, including at the design stage of every new business project. Environmental management in Bci is coordinated by the Branches Management and Corporate Personnel Management. A principal step in 2007 was the start-up of the program Wake up! The environment is in your hands, developed jointly with Fundación Casa de la Paz. One of the most important results of this campaign was the acquisition of software for providing environmental indicators in the management of the Bci Corporation. It is now possible to keep records and share information on the consumption of paper, water and energy, periodically and systematically.

95 Report on Corporate Governance and CSR ,600 STAFF MEMBERS TOOK PART IN THE WAKE UP! PROGRAM Wake up! The environment is in your hands program This program was developed between October 2006 and July 2007, and consisted of gathering the Bank s environmental information, organizing workshops to identify good practices in each office and elect an environmental leader to create an awareness among employees regarding the efficient consumption of resources. The campaign also included the distribution of s, diaries, pamphlets and graphic material referring to care for the environment. At the end of this stage, more than 800 staff had attended the workshops, six corporate s were sent with messages concerning environmental protection and visits were made to branches to explain the Wake up! program. This last activity enabled Bci to reach more than 4,600 employees. Bci s target was to reduce the consumption of water, energy and paper by 10%. The first step in this process was the employment of actions taken around the world that could be replicated in Bci. Information on each branch s consumption was then collected. Energy and water bills were therefore obtained, while the data was centralized through the cost center for paper. The third step was to invite staff to take part in a competition for motivating local savings. Bci promised to invest in the region of the winning branch through support for an initiative for the conservation and restoration of an ecosystem in the region. The branches of Caldera, Copiapó and Chañaral, in Atacama Region, won the competition because they achieved an average saving of 18% between water and electricity. These chose the development of the Pan de Azúcar National Park conservation and environmental education program, in collaboration with Fundación Casa de la Paz and the Center for National Resources Studies (OTERRA). This initiative will permit improving and complementing the infrastructure of the park s environmental center, implementing a flora conservation program, and developing workshops for environmental education in schools and training courses for park personnel, in order to create a consciousness in the community of Chile s desert ecosystems.

96 10. The environment Consolidated principal consumption indicators Consumption of paper (millions of sheets) Consumption of water in buildings in Santiago (thousands of m 3 ) Consumption of electricity (megawatts) (*) All figures as of September. Structural improvements It should be noted that while the corporate building incorporated environmental variables in its design, it was responsible for the increase in consumption of water and electricity. A program for the optimization of the resources was therefore implemented during the year. The following are notable among the improvements obtained with this initiative, which seeks an appropriate management of waste and a better us of resources: 326 water taps were installed with a device that opens and automatically closes in hand basins, showers and canteens, which permitted a 50% saving in water consumption in the corporate building. Boiler maintenance permitted a reduction in the consumption of oil and iso-kynetic controls in the last four years. This reduced the emission of contaminants by 22.5% and of fuel consumption by 4,000 liters annually. Elements based on radioactive drops for smoke detection and fire prevention have ceased to be acquired. The reduction in consumption of this type of element exceeded that of the 1,680 ionic-type detectors in the last eight years. Photo-electric detectors are currently used, with a larger technological capacity and wider coverage, thus reducing its consumption to an average of 10 units per architecture project, while not leaving the most vulnerable areas unprotected in the event of a fire starting. In fire-protection aspects, over the last eight years halogenous products of more than 2.3 tons have ceased to be used as these might have had an impact on the ozone layer, being replaced by more innocuous products.

97 In every project for the construction or renovation of Bci premises, it is obligatory to use energy temporizers, highly-efficient lighting, un-leaded paint, water saving devices and air-conditioning equipment using ecological gas. Report on Corporate Governance and CSR Waste management Regarding the re-utilization of domestic waste, mainly paper, and as a result of the environmental campaign, an alliance was maintained with Fundación San José for the recycling of 47,523 kilos of paper, 900% more than in Important in 2007 was the start of the recycling program for electronic waste, batteries and computers, for which the services of Hidronor and Recycla Chile have been contracted. The recycling of electronic equipment amounted to 10,976 kilos. Average/radioactive detectors not acquired by Bci Tons of halogenous products not acquired by Bci Total halogenous products not acquired by Bci amounts to tons.

98 11. Economic performance Banks are as ancient as man s need to carry out exchange and credit transactions. With the increase in the level of specialization, a larger number of services and products were created to meet the requirements of the customers. The General Banking Law defines them as any special corporation, authorized in the form established by law and subject to the law, that is dedicated to attracting or receiving funds from the public in order to grant these as loans, discount documents, make investments, proceed to financial trading, obtain returns on these funds and in general carry out any operation that the law permits. Banks are therefore organizations that contribute directly to the micro and macro-economic development of the country. Their products permit improving people s living conditions, from the perspective of saving to the possibility of accessing various kinds of credit, carrying out the multiplication of financial resources, which permit the development of the economy. The analysis concerning the principal indirect impacts of the Bank in society is based on the way in which it contributes indirectly to the sustainable development of each of the stakeholders defined in the mission: shareholders, staff and their families, customers, suppliers and the community. These contributions were amply covered in this Report. As a concrete example of these impacts, there has been the opening of branches in remote places, in some cases becoming the first or only financial entity with a presence there, like the cases of the offices in Chabunco and Ojo Bueno in the Magallanes Region and Cabrero in the Bío Bío Region. Use is also made of the goods and services necessary for the Bank s functioning. The group of managers comprising the Management Direction Committee is responsible for providing the strategic guidelines for the Corporation s economic performance, its implementation and the management of the processes. The year ended with full compliance with the principal objectives set out in the balanced scorecard, in financial, personnel, process improvement and service quality terms.

99 Report on Corporate Governance and CSR Balances at the end of each year, in millions of pesos of December 31, 2007 Change CONSOLIDATED BALANCE SHEET / 2007 Loans Mortgage loans Contingent loans Past-due portfolio 1,871, , , ,16 7 2,043, , ,866 48,786 3,040, , ,995 43,075 4,443, , ,447 49,843 6,417, , ,849 59,353 7,323, , ,712 54, ,859 (72,108) 30,863 (4,761) Total Loans 2,584,987 2,770,791 3,972,545 5,413,231 7,468,939 8,328, ,853 Financial investments Other assets 492, , , ,228 1,156, ,630 1,102,680 1,282, ,546 1,447,469 1,019,684 1,330, ,138 (116,640) Total assets 3,914,925 4,435,614 5,877,268 7,798,314 9,824,954 10,679, ,351 Sight deposits Time deposits & borrowings Other obligations Capital & reserves Net income 985,841 1,366,237 1,340, ,240 44,921 1,015,608 1,691,175 1,454, ,357 45,834 1,322,662 2,234,570 1,953, ,431 67,581 1,562,338 2,936,643 2,815, , ,762 1,605,716 4,402,333 3,185, , ,044 1,735,463 4,828,309 3,411, , , , , ,774 66,522 6,332 Total Liabilities 3,914,925 4,435,614 5,877,268 7,798,314 9,824,954 10,679, ,351 FINANCIAL INDICATORS Bci shares Price (pesos) Earnings per share (pesos) Market price / book value (times) Market price / earnings per share (times) Market value (thousands of dollars) Shareholders equity (thousands of Unidades de Fomento) 3, ,867 9,011 4, ,499 11,609 6, ,410 15,209 14,200 1, ,506,481 19,472 17,025 1, ,149,340 25,493 14,950 1, ,968,689 28,975 (2,075) (0.75) (2.12) (180,651) 3,482 Profitability & Efficiency Return on capital Capitalization previous year s earnings Return on assets Productivity (operating expenses / operating income) Assets per employee (millions of pesos) 25.34% 68.05% 1.15% 56.70% % 60.08% 1.03% 59.50% % 51.10% 1.15% 51.92% % 54.41% 1.29% 52.96% % 53.23% 1.31% 52.79% % 54.75% 1.27% 49.66% (1.89) 1.52 (0.04) (3.13) 17 pp pp pp pp Market share Loans Sight deposits Time deposits 7.85% 13.77% 7.19% 7.91% 14.80% 7.08% 10.38% 12.50% 8.89% 12.20% 14.51% 9.77% 12.51% 14.87% 10.90% 12.38% 14.53% 11.61% (0.13) (0.34) 0.71 pp pp pp Risk Total allowances / total loans Past-due portfolio / loans net of interbank Allowances / past-due portfolio 1.53% 1.09% 1.34% 2.39% 1.76% 1.33% 1.69% 1.08% 1.50% 1.88% 0.92% 2.05% 1.23% 0.79% 1.55% 1.28% 0.66% 1.95% 0.05 (0.13) 0.40 pp pp pp ACTIVITY Employees (Bci Corporation) Banking services offices No, of checking accounts No, of prime accounts Automatic teller machines ATM transactions Customers with internet access passwords Transactions via internet 3, , , ,224, , , , ,889, ,836 4, , , ,445,773 3,474,855 7, , , ,836,141 7,851,970 8, , , ,218, ,641 8,984,343 9, , , ,214, ,324 11,792, ,072 38, (3,874) 37,683 2,808,399 (pp) percentage points

100 11. Economic performance Economic value generated and distributed Since its creation, Bci has maintained an explicit commitment with the generation of value for the surroundings in which it operates, focusing its efforts on maximizing the value that the Bank generates for both its shareholders and customers, and for its staff, suppliers and society as a whole. The following shows Bci s contribution to the generation of added value to the Chilean economy and how this value has been distributed among the principal stakeholders with which it interacts. This information is consistent with the financial statements as of December 31, 2006 and Economic value created and distributed 2006 & 2007 (millions of pesos) Economic value created 2 a) Revenues Operating revenues 1,199,747 1,465,665 Non-operating revenues 6,359 12,256 Result investments in companies 1,232 (585) Total revenues 1,207,338 1,477,336 Economic value distributed b) Operating costs Administrative & other expenses 3 (85,428) (86,803) Depreciation & amortization (15,939) (19,460) Total operating costs (101,367) (106,263) c) Staff salaries & benefits 115,929) (123,803) d) Payment to suppliers of capital Shareholders (dividends) (53,088) (54,373) Suppliers of funds 4 (783,175) (996,349) Total payments to suppliers ocapital (836,263) (1,050,722) e) Payments to government (income tax) 5 (24,234) (26,715) f) Contributions to Superintendency of Banks 6 (2,005) (2,175) f) Contributions to the community 7 (624) (827) Economic value retained 8 (126,916) (166,831) Total economic value distributed 1,207,338 1,477,336 1 The figures for 2006 are shown restated by the price index. 2 Figures have been rounded to facilitate reading. 3 Includes value-added tax and territorial tax. 4 Refers to liabilities on which the Bank pays interest, like time deposits and borrowings. 5 Refers to income tax based on taxable income. 6 Relates to funds paid to the Superintendency of Banks and Financial Institutions in accordance with clause 8 of the General Banking Law. 7 Donations made to different entities 8 Net income for the year (2007: Ch$ 135,376 million, and 2006: Ch$ 120,153 million)

101 Report on Corporate Governance and CSR Diagram of economic value distributed (millions of pesos) 9.60% 8.39% 8.38% 7.19% 2.01% 1.81% 0.17% 0.15% 10.51% 0.05% 11.29% 0.06% Suppliers of capital 2006 Total: $1,207, % 2007 Total: $1,477, % Economic value retained Staff salaries & benefits Operating costs Payments to government (income tax) Payments to Superintendency of Banks Payments to the community There were no significant changes between 2007 and 2006 with respect to the percentage distribution of the economic value generated between the principal stakeholders of the Bank, except for a reduction in the value distributed in the items operating costs and staff salaries, plus a real increase in suppliers of funds. Financial assistance received from the government The principal financial assistance received by Bci from the Chilean government is the tax credit for motivating training and employment. This credit is provided for in Law 19,518, Training and Employment Statute, which states that taxpayers can deduct as a credit against income tax expenses incurred in financing training programs offered nationally in favor of personnel. The Bank also deducts from income tax the credit for donations to the community. Tax credits (millions of pesos) Credit for training expenses Credit for donations Total governmentontributione Gobierno

102 12. GRI and Global Compact Guidelines PROFILE NUMBER INDICATOR PAGE GLOBAL COMPACT PRINCIPLE 1. STRATEGY & ANALYSIS 1.1. Letter from CEO or top executives of the organization 4 & Description of the principal impacts, risks & opportunities 4 & 5, 8 & 9 2. PROFILE OF THE ORGANIZATION 2.1. Name of the organization 4 & 5 P Principal brands, products &/or services 10 P2, P Operative structure of the organization, including the main divisions, operative entities, subsidiaries & joint ventures 2.4. Location of the head office of the organization Number of countries in which the organization operates Nature of ownership & legal structure Markets served 10, Size of the organization Significant changes during the period covered by the annual 4-7 report Prizes & distinctions received during year 12 & PARAMETER OF THE ANNUAL REPORT PROFILE OF THE ANNUAL REPORT 3.1. Period covered by the information contenida en la memoria 6 & 7 P1, P Date of the most recent previous annual report 6 & Annual report presentation cycles 6 & Contact point for questions about the annual report or its content Cover Solapa SCOPE AND COVERAGE OF THE ANNUAL REPORT 3.5. Definition process of the contents of the annual report 6 & 7 P1, P Coverage of the annual report 6 & 7 P1, P Indicate any limitations on the scope or coverage of the annual report 6 & 7 P1, P Basis for including information on joint ventures, subsidiaries, leased installations, sub-contracted & other entities 6 & Measurement techniques of data & bases for their calculation En el Reporte 3.10 Description of the possible effect of re-expression of information contained in previous annual reports 6 & Significant changes relating to previous periods 6 & Table of basic contents For this report, Bci decided not to apply an external Verification verification system 10

103 Report on Corporate Governance and CSR NUMBER INDICATOR PAGE GLOBAL COMPACT PRINCIPLE 4. GOVERANCE, COMMITMENTS & PARTICIPATION OF STAKEHOLDERS 4.1. Organization s governance structure 24 P Function of the top executive 30 y 31 P2, P Unit management structure 24 y 29 P2,P Participation of shareholders & staff 50 y Participation of shareholders & staff The directors have fixed & variable income depending on the company s earnings. The compensations of the senior management are related to compliance with the BSC targets which include social and environmental factors 4.6. Procedures followed to avoid conflicts of interest at the top level of governance 30, 39 y Procedure for determination of the training & experience required at the top level of governance 26, 30 y Declaration of Mission, Vision & Values Solapa y Procedure of the top level of governance for supervising the identification & management by the organization of economic, social and environmental performance Procedures for evaluating the performance of top level of governance COMMITMENT WITH EXTERNAL INITIATIVES Description of how the organization has adopted a precaution statement or principle The Corporate Governance & CSR Committee is responsible for identifying risks & opportunities in relation to the Bank s economic, social and environmental performance, and how to supervise its performance 26, 30 y 39 Bci, regarding its commercial & financial activities, is not susceptible to generating significant direct material impacts on the environment. However, through the financing of projects it may indirectly affect ecosystems. The entity therefore requests the EIA for projects whose investment is over UF prior to approving the financing, also conditioning this to the production of environmental certificates by the pertinent authorities during the project s progress, thus maintaining a preventive focus that benefits the environment Social, environmental & economic principles or programs developed Throughout the Report Principal associations belonged to 11 PARTICIPATION OF STAKEHOLDERS Relation of stakeholders which the organization has included In the preparation of this Report, Bci did not follow a P1, P Basis for the identification & selection of stakeholders with process of stakeholder engagement but promises to develop which the organization is committed this for the next report P1, P Focus on the participation of different stakeholders, including the frequency of their participation by types & groups 14 y 15 P1, P Principal concerns & aspects of interest that have arisen through the participation of stakeholders 14 y 15 P1, P6

104 12. GRI and Global Compact Guidelines FINANCIAL SUPPLEMENT NUMBER INDICATOR PAGE MANAGEMENT OF CORPORATE SOCIAL REPONSIBILITY GLOBAL COMPACT PRINCIPLE RSC 1 CSR policy 18 y 19 P2, P6 RSC 2 CSR organization 20 y 21 RSC 3 CSR audits 20 y 35 RSC 4 Management of sensitive matters 20 y 35 RSC 5 Non-compliance Bci recorded no incidents of this type during the year RSC 6 Dialogue with stakeholders 14 y 15 ECONOMIC DIMENSION DMA Management Focus 96 P1, P6 ECONOMIC PERFORMANCE EC1 Economic value generated & distributed 98 P1, P3 EC2 Making of studies on this matter have not been considered Financial implications of climate change but this will be evaluated P5 EC3 Coverage of obligations defined by the organization for social benefits (retirement). Not reported P1, P4 EC4 Financial assistance received from the government 99 MARKET PRESENCE EC6 Practices & proportion of expenses in local suppliers 78 EC7 Procedures for the local recruitment & proportion of senior All senior management positions are filled by Chilean management professionals INDIRECT ECONOMIC IMPACTS EC8 Description of investments in infrastructure & support services that provide a public benefit 96 ENVIRONMENTAL DIMENSION DMA Management focus 92 MATERIALS EN1 Weight or volume of materials used, other than water Not reported ENERGY EN3 Direct consumption of energy shown by primary energy source 94 EN5* Energy saving due to conservation & to improvements in efficiency 93 EMISSIONS AND WASTE EN16 Total direct & indirect emissions of greenhouse-effect gases. 94 y 95 EN19 Emissions of substances that reduce the ozone layer 94 y 95 EN22 Total weight of waste managed, by type & treatment method 95

105 Report on Corporate Governance and CSR SOCIAL DIMENSION: Labor practices and work ethics NUMBER INDICATOR PAGE GLOBAL COMPACT PRINCIPLE DMA Management focus 58 EMPLOYMENT LA1 Detail of staff unions 59 P2 LA2 Total average workforce & turnover 59 P2, P6 LA3* Social benefits for full-time staff COMPANY/STAFF RELATIONS LA4 Percentage staff represented by unions 67 P1, P6 LA5 Minimum prior notice of organizational changes Not reported OCCUPATIONAL HEALTH AND SAFETY LA6* Percentage of staff represented on health & safety committees 68 P1, P3 LA8 Rates of absenteeism, accidents & work damages, days lost & number of fatal victims related to work 68 LA9 Education programs related to HIV or other serious contagious illnesses Not reported FORMATION AND EDUCATION LA10 Average hours of formation per year per employee 62 P1, P5 LA11* LA12* Management skills & continual formation programs that motivate the continual recruitment of staff & support them in the management of retirement programs Percentage of staff who receive regular reviews of performance and professional development DIVERSITY AND EQUALITY OF OPPORTUNITIES LA13 Composition of senior management & corporate governance departments 26-29, P1, P4 LA14 Average comparison of remuneration for men & women Not reported FINANCIAL SUPPLEMENT INTERNAL SOCIAL PERFORMANCE INT1 Internal CSR policy 20 y 21 INT2 Staff turnover & job creation 59 INT3 Staff satisfaction 63 INT4 Remuneration of senior management directivos 39 y 40 INT5 Remuneration related to sustainability 39 y 40

106 12. GRI and Global Compact Guidelines SOCIAL DIMENSION: Human Rights NUMBER INDICATOR PAGE GLOBAL COMPACT PRINCIPLE DMA HR1 Management focus INVESTMENT & PROCUREMENT PRACTICES Percentage of significant investment agreements containing human rights clauses Bci has different organs & channels for protecting respect for the rights stated by law & in its ethics code, such as the ethics committee, and What do I do? telephone and channel. 100% of all suppliers, as indicated in the suppliers policy P2 HR2 Percentage of the principal distributors & contractors that received a human-rights observation There were no observations P2, P6 NON-DISCRIMINATION HR4 Total incidents of discrimination & actions taken The ethics committee is responsible for knowing a series of situations that involve faults or breaches of the ethics code, adopting in each case the measures for correcting the situations & proposing the disciplinary measures when considered necessary. P1, P6 FREEDOM OF ASSOCIATION AND COLLECTIVE AGREEMENTS HR5 Incidents of violations of the freedom of association & of resorting to collective agreements Bci recorded no incident during 2007 P1, P3 FORMATION AND EDUCATION HR6 Incidents of infant exploitation & actions taken to contribute to their elimination Bci recorded no incident during Bci does not have on its staff those who do not comply with the legislation contained in the Labor Code, Chapter II, clauses 13 to 18. P1, P5 FORCED LABOR HR7 Forced labor risks or incidents & actions taken to contribute to their elimination Bci compiles with the labor and civil laws. P1, P4

107 Report on Corporate Governance and CSR SOCIAL DIMENSION Society NUMBER INDICATOR PAGE GLOBAL COMPACT PRINCIPLE DMA Management focus 82 P82 COMMUNITY S01 Nature, scope & effectiveness of programs & practices for evaluating & managing the impacts of operations in the communities, including the entry, operation & exit CORRUPTION S02 Percentage & total number of business units analyzed with respect to corruption-related risks. There is a Money Laundering Management that detects aspects related to corruption. There is a mail in which tellers share how they have detected corruption problems. An audit was made of all the possible risks that might occur in the Bank s processes P10 S03 S04 S05 SO6* SO7* Percentage of staff trained in the organization s anticorruption policies & procedures Measures taken in response to corruption incidents PUBLIC POLICY Position in public policies & participation in their development & lobbying activities. Total amount of financial & other contributions to political parties or related institutions, by country UNFAIR COMPETITION BEHAVIOR Total number of actions for causes related to monopoly practices and those against free competition, and their results COMPLIANCE WITH REGULATIONS 100%, included in the induction process. P10 Bci maintains a preventive focus on corruption incidents, but if detected, there are established channels that should be used as the case may be: ethics committee, legal counsel or direct head. The ethics code provides all the guidelines to be followed in relations between Bci and the government. Bci does make this kind of contribution. No incidents of this kind were recorded during P10 P10 SO8 Monetary value of sanctions & significant fines & total number of non-monetary sanctions deriving from noncompliance with laws & regulations, related to society (government, community, academia institutions, NGOs, etc) No incidents of this kind were recorded during P1, P4 SOC1 FINANCIAL SUPPLEMENT PERFORMANCE WITH RESPECT TO SOCIETY Charitable work Contributions made to charitable work, investments for the community & commercial sponsorships Creation of value SOC2 Aggregate Economic Value 98 y 99

108 12. GRI and Global Compact Guidelines RESPONSIBILITY FOR THE PRODUCT NUMBER INDICATOR PAGE GLOBAL COMPACT PRINCIPLE DMA Management focus 72 y 77 CUSTOMER HEALTH AND SAFETY PR1 PR3 PR5* PR6 PR7* PR8* PR9 Phases in the life cycle of products & services in which their impacts are evaluated on the health & safety of customers, and percentage of categories of significant products & services subject to such evaluation procedures LABELLING OF PRODUCTS AND SERVICES Type of information on the products & services that are required by current procedures & regulations, and percentage of products & services subject to such informative requirements Practices with respect to customer satisfaction, including the results of measurements of customer satisfaction MARKETING COMMUNICATIONS Programs of compliance with laws, standards and voluntary codes related to marketing communications, including advertising, promotions & sponsorships Total number of incidents arising from non-compliance with regulations relating to marketing communications, including advertising, promotions & sponsorships CUSTOMER PRIVACY Total number of duly-founded complaints relating to respect for privacy & the loss of personal data REGULATORY COMPLIANCE Cost of significant fines as a result of non-compliance with regulations with respect to the supply & use of the organization s products & services 76 P1 76 P10 76 P10 76 P10 No incidents of this kind were recorded during P10 76 P1, P5 No incidents of this kind were recorded during P1, P4

109 Report on Corporate Governance and CSR NUMBER INDICATOR PAGE FINANCIAL SUPPLEMENT SUPPLIERS GLOBAL COMPACT PRINCIPLE Follow-up of the principal suppliers SUP1 Policies & procedures for controlling the social performance of suppliers Surveys of suppliers satisfaction SUP2 Survey s of supplier s satisfaction FINANCIAL SUPPLEMENT RETAIL BANKING Social aspects of retail banking RB1 Criteria used for strengthening the social capital and the treatment of sensitive matters in the business unit. Retail banking can include access to financial services, marketing practices, loans to companies/projects with an important critical social impact 83 y 84

110 EXECUTIVE PRODUCTION COMMUNICATIONS AND CSR MANAGEMENT GRI GUIDELINES ADVISER YASMINA ZABIB DESIGN PHOTOGRAPHY ANA MARÍA LÓPEZ PRINTING FYRMA GRÁFICA