State Street Corporation

Business in the Community's Responsible Business of the Year, Finalist, 2016

Financial services company State Street Corporation are working to incorporate key elements of corporate responsibility across their business strategy, through solid governance, strong reporting, operational excellence, and a focus on workforce diversity and engagement.

Three tips from State Street

  • Ensure accountability at board level for corporate responsibility (CR) strategy
  • Embed corporate responsibility into business and growth strategy - address explicit social and/or environmental challenges that can benefit your business
  • Ensure transparency and independent verification of corporate responsibility credentials

State StreetOverview

Financial services company State Street Corporation are working to incorporate key elements of corporate responsibility across their business strategy, through solid governance, strong reporting, operational excellence, and a focus on workforce diversity and engagement. 

Encouraging employees to volunteer 

State Street employees receive two paid volunteering days per year. The company runs a non-profit board training and matching program for executives which includes training with experts in the non-profit sector, peer networking and signposting to charitable board roles. For new and mid-level managers, the company offers volunteer engagements tied directly to their role, including mentoring programs. 

Entry level employees are offered skills-based volunteering which develops their professional expertise as well as team challenges, providing an opportunity to network with new colleagues. In 2015 State Street employees volunteered 116,000 hours of service around the world, a year on year increase of 9%. They also invested $4.2 million in communities through matching gifts, a 27% increase on 2014.

Building workforce diversity 

State Street aims to build an inclusive workplace where all employees feel valued and engaged in their work. With more than 30 employee resource groups with over 100 global chapters, the company brings colleagues together around common interests. Employee resource groups also build partnerships with local organisations and use their talent and resources and talent to meet the social needs of the community. 

Supporting communities 

The State Street Foundation has invested more than $23 million to support local community initiatives focused on education and employability, not only working to support social inclusion but helping to prepare diverse, local talent pools for employment. 

The company also launched Boston Workforce Investment Network with a mission to strengthen Boston’s future workforce by advancing job readiness for local youth today. The State Street Foundation has made a multi-year $20-million commitment to five high-performing nonprofits focused on education and career development. 

Products and services with social and environmental impact

State Street is also developing new products, services and investments to support environmental and social goals. Their asset management arm, State Street Global Advisors (SSGA) has 17 environmental, social and governance products on the market, such as a fossil-fuel-free exchange traded fund. 

The Municipal Finance group funds infrastructure projects that address environmental or social issues, including public transportation, green terminals at airports, water and sewer upgrades, and public housing. 

In the US, State Street's Finance group invests in tax-advantaged schemes to finance social issues such as low-income housing (US$175 million in 2015) and environmental causes such as renewable energy (US$175 million in 2015).

Stronger compliance and governance

State Street have increased investment in their regulatory compliance and risk management infrastructure and processes. The company also appointed a Chief Ethics Officer and introduced a framework to strengthen ethical awareness, training and oversight, including enhanced compliance monitoring and enforcement. In the UK, The Office of Controls, Culture and Governance was established to promote best practices across these key areas. 

The State Street Corporation recognises that corporate responsibility is essential to the long-term success of their business, and have committed to creating value for their employees, clients, shareholders and for society at large.

What State Street's Chairman and CEO said:

“We are proud of the role we play in the global financial system, and we’re committed to conducting our business in a responsible manner so we can be sure we’re having a positive impact on the world.” - Joseph L. Hooley, Chairman and Chief Executive Officer, State Street

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