Sainursalwa is a Human Capital expert with comprehensive expertise in human capital management, corporate social responsibility, and environmental stewardship. At Bank Pembangunan Malaysia, she leads Group Human Capital Management, oversees CSR initiatives, and drives ALAM-a national effort to reshape environmental attitudes in Malaysia.

In a conversation with The Global Woman Leader Magazine, Sainursalwa shares her thoughts about the evolving role of corporate social responsibility (CSR) in the finance sector, emphasizing the integration of sustainability into human capital strategies. She explores how to adapt human capital management for compliance while fostering innovation and balancing financial performance with social and environmental responsibilities.

In the context of the current economic landscape, how do you foresee the evolution of corporate social responsibility (CSR) in the finance sector? Are there emerging trends that finance leaders should be aware of?

Corporate Social Responsibility (CSR) in the finance sector is anticipated to evolve significantly, with an increased emphasis on sustainable investing, green financing, and supporting community development initiatives. Finance leaders should be aware of emerging trends such as the growing demand for socially responsible investment options and the imperative to align CSR efforts with the UN Sustainable Development Goals (UN SDGs).

At Bank Pembangunan Malaysia Berhad (BPMB), this translates into our purpose, “We deliver impact capital for national development”. Our CSR programs have consistently focused on the pillars of community development and environmental sustainability, aligning with the UN SDGs.

We take pride in our initiatives, including financial literacy and English proficiency programs for children and youth, a food-for-cause programmes that has supported approximately 1,500 beneficiaries, and our flagship collaboration in sports development with local legend Nicol David. Since 2023, BPMB has also been running a weekly soup kitchen programs every Wednesday, providing lunch and dinner to the homeless in Kuala Lumpur.

This year, BPMB is honoured to have received the "Bank of the Year (Development Bank): Community and Education Empowerment Award" at the Sustainability and CSR Awards 2024.

Given the heightened focus on environmental awareness, how can finance organizations integrate sustainability into their human capital strategies effectively? What role should CHROs play in this integration?

Employees are pivotal in advancing our national development agenda through impact capital. One of the key strategic pillars in Agenda 2025, BPMB’s three-year strategic transformation plan, is becoming a Talent Hub, particularly within the Development Financial Institution sector in Malaysia. A Talent Hub is defined as the ability to nurture talents who are critical change agents, driving national growth and development while being technically, intellectually, emotionally, physically, mentally, and environmentally self-aware.

Our human capital strategy emphasizes three fundamental pillars: talent development, organizational climate, and cultural transformation. Sustainability is a key element woven throughout these areas. To effectively integrate sustainability into our human capital strategy, we prioritize building a culture that promotes environmental awareness and sustainable practices. Employees are encouraged to engage in various volunteer programs, primarily driven through CSR and Amanah Lestari Alam (ALAM), a foundation established by BPMB to spearhead environmental sustainability initiatives.

In 2023, over 12,000 volunteer hours were logged, with expectations for even more this year. By 2025, our goal is to exceed 14,000 hours, with a strong emphasis on sustainability through CSR programs and ALAM initiatives, particularly in public engagement, youth capacity building, and empowerment efforts.

CHROs play a crucial role in fostering a culture of sustainability by incorporating green initiatives into employee engagement activities and recognizing and rewarding those who champion sustainability efforts. Furthermore, integrating sustainability into various aspects of human capital management such as compensation and benefits, performance management, employee engagement, industrial relations, and learning and development is essential. CHROs must create a work environment that balances a high-performance culture with sustainability.

As the finance industry navigates a shifting regulatory environment, how can human capital management practices be adapted to ensure compliance while fostering a culture of innovation and agility?

Human capital management practices can be adapted to ensure compliance in a shifting regulatory environment by implementing robust training programmes, establishing clear policies, and aligning procedures with regulatory requirements. To simultaneously foster a culture of innovation and agility, finance organizations should encourage employee-driven initiatives, provide opportunities for cross-functional collaboration, and recognize and reward innovative ideas.

Building on our Measuring Impact on National Development (MIND) framework, which guides our operations and investments, one of the key initiatives led by Group Human Resources this year was the launch of our first Design Thinking & Innovation Hackathon Challenge. This challenge is designed to align with our innovation needs and strategic goals, encouraging all employees to participate in refining and challenging current practices. The aim is to develop more robust and sustainable solutions for the organization.

With the rise of digital transformation in finance, how can CHROs leverage technology to enhance employee engagement and performance management? What are some unconventional tools or approaches that are showing promise?

CHROs can enhance employee engagement and performance management by utilizing technology to implement real-time feedback, recognition, and collaboration platforms. Performance management software can also streamline goal setting, feedback, and development planning processes.

For example, our recent implementation of the HR Management System via Workday exemplifies this approach. This system not only tracks and manages our workforce but also provides a comprehensive view of employees' skills and capabilities. With advanced AI and machine learning integrations, we are able to make informed adjustments to HR processes and deliver personalized experiences, fostering sustainable growth and development for our employees.

How can finance leaders balance the need for financial performance with the increasing demand for social and environmental responsibility? What frameworks or principles can help align these often competing priorities?

Finance leaders can balance financial performance with social and environmental responsibility by adopting frameworks that integrate both financial and non-financial metrics. One effective approach is the Balanced Scorecard, which includes measures for social and environmental impact alongside traditional financial performance indicators.

At BPMB, we use the Measuring Impact on National Development (MIND) framework, developed in collaboration with the World Bank. This framework guides our operations and investments, aligning them with national development goals. We continually review and enhance the framework, and our recent upgrade to MIND 2.0 reflects our commitment to integrating social and environmental considerations into our business strategy. We believe that MIND 2.0 not only supports BPMB's growth but also benefits the broader financial sector. We are dedicated to training and advocating for the adoption of MIND 2.0, contributing to national progress.

Operationally, BPMB incorporates mandatory social and environmental KPIs under the Ministry of Finance's guidelines. We also set key performance metrics for all employees, including leadership, focusing on areas such as People Development, Risk Management, and Organizational Culture. Additional KPIs are categorized into Developmental Impact and Business Process Improvements to ensure that every initiative and project positively impacts the targeted social and environmental goals.

As the finance industry faces increased scrutiny on corporate governance, what unique human capital initiatives can help strengthen ethical practices and build a culture of transparency?

To strengthen ethical practices and build a culture of transparency in the finance industry, institutions should focus on several key initiatives. Ethical leadership development programs are essential for fostering a commitment to ethical decision-making among leaders at all levels. Implementing robust whistleblower protection policies, such as the Deloitte HALO digital whistle blowing solution used at BPMB, ensures that employees can report concerns securely and confidentially. Regular ethics and compliance training reinforces standards and keeps ethical practices front of mind. Additionally, establishing clear codes of conduct and promoting open communication channels support a transparent and accountable culture.

At BPMB, we uphold these practices rigorously. We offer continuous leadership development programs for our leaders, management, and executive-level employees. This year, we will launch our first Integrity & Internal Control Excellence Day, replacing the annual Compliance Awareness Day, to further enhance awareness and engagement across the organization.