Case Name :      RBC – Financing Oil Sands (A)

Authors :           Michael Sider, Jana Seijts, Ramasastry Chandrasekhar

Source :             Ivey Publishing

Case ID :            910M15

Discipline :        General Management

Case Length :    16 pages

Solution Sample availability : YES

Plagiarism : NO (100% Original work)

Under pressure from the Rainforest Action Network to make their lending policies more sustainable, executives at the Royal Bank of Canada who deal with issues of corporate citizenship and sustainability must decide whether to continue financing companies involved in extracting oil from the tar sands of Alberta, Canada. The case asks students to consider the following questions: 1) Should banks lend to any business or industry the government deems to be sustainable? 2) What are the risks of lending to businesses some stakeholders deem unsustainable? 3) How should banks respond when pressured by an interest group? 4) How does a bank decide what is sustainable lending practice?