CORPORATE RESPONSIBILITY

Corporate Responsibility ('CR') plays an integral role in our approach to business at Anglo Irish Bank. We recognise our obligations and responsibilities, and from the highest levels of our organisation we are committed to fulfilling them. We understand the importance of building and maintaining sustainable relationships with all our stakeholders - shareholders, customers, staff, suppliers, government, regulatory bodies and the community and how these relationships are key to our continued success.

The way we conduct our business is guided and underpinned by a set of core values and principles which ensure the Bank operates in the best interests of all stakeholders.

We operate to the highest ethical and governance standards as we aspire to be a model corporate citizen. For this reason we invest heavily in the development and training of our staff, as well as maintaining the highest levels of integrity in our relationships with our stakeholders. At Anglo Irish Bank, we take a responsible approach to environmental issues and are proactive in seeking innovative ways in which to become more efficient. In addition, a fundamental aspect of our CR strategy is our commitment to supporting the development of the wider community, which includes sponsorship programmes for the arts and sporting events.

The success of Anglo Irish Bank is directly attributable to the dedication and commitment of almost 1,900 people working for the Bank. Employee well-being is therefore of paramount importance.

We aim to foster an environment where staff can develop both personally and professionally, and where resources are put in place so that they can realise their goals and ambitions. This year a new innovative Learning and Development programme was launched to further facilitate the progress of our staff. This initiative will ensure that our employees receive the appropriate training to help them reach their full potential within the Bank. We have a work environment of equal opportunity with wide scope for career progression and a meritocracy where outstanding performance is acknowledged and well rewarded.

At Anglo Irish Bank it has been our policy to reward the dedication and achievement of our people with tangible ownership of the business. Testament to this commitment is the success of our Save As You Earn ('SAYE') scheme, which has been in operation since 2000. The scheme allows staff to acquire shares in the Bank at a discounted rate. The initiative has been extended successfully across all of the Bank's geographical locations, with a very positive response from staff, with over 90% now being shareholders.

In April 2007 we launched an Employee Well-Being scheme. The scheme is operated in conjunction with an independent consultancy firm and offers a completely confidential support service to staff on any issues facing them in their personal lives. This scheme is characteristic of our commitment to the health and well-being of our people.

As well as supporting our staff during their careers at Anglo Irish Bank, we are committed to safeguarding their future later in life. It is for this reason that we continue to support an incentive based pension scheme, whereby staff are encouraged to make additional voluntary contributions (AVCs) to their pension. Under the scheme, the Bank will match, on a one-for-one basis, AVCs made by staff up to a pre-defined level. This initiative continues to receive very positive feedback, with the numbers making AVCs increasing significantly since the launch of the programme last year.

As an employer we invest significantly in employee relations. A survey which was conducted with our staff in May 2007 revealed that our employees had an overwhelmingly positive attitude to their role and to the Bank. Overall, the findings are very encouraging. We intend to make this survey an annual event. This will provide us with invaluable feedback allowing us to continually improve employee relations going forward.

Anglo Irish Bank's sustained market leading performance has been built on a relationship based business model that has professionalism and consistent delivery to customers at its core.

We understand that customers are unique and all have different needs. Acknowledging this, we provide a bespoke service, tailored to individual requirements.

To ensure that we meet the highest standards of service, our customer support staff are organised into specialist teams to maximise the efficiency with which they deal with customer queries. Each team acts as a point of contact for a specified customer group to ensure that we respond effectively to their individual requirements. Furthermore, the Bank has a complaints process in place, whereby staff members formally log customer complaints which are then appropriately addressed. This is characteristic of our commitment to superior customer service and ensures that any complaints received are dealt with promptly and professionally.

As well as maintaining a strong relationship with our customers, the Bank is also committed to our relationships with our suppliers. We continuously seek to improve the way in which they are managed. An important element of this is ensuring that we pay our creditors promptly and efficiently. In this regard, electronic funds transfer is our primary method of payment.

Our approach to CR in the community is firmly rooted in the generosity and commitment of our staff, who give their time and effort to support a wide range of worthwhile causes. In fact, employees are often directly involved in the selection and funding of many of the initiatives supported by the Bank.

Anglo Irish Bank is a founding member of Business in the Community ('BITC'). Since 2000, BITC has worked with Irish companies who are seeking to make a positive impact on society. This is done through numerous initiatives which focus on community involvement. One such initiative in which the Bank has actively participated is the 'Ready to Work' scheme which offers people who have been affected by homelessness the opportunity to re-enter the workforce. 'Ready to Work' offers training and support as well as placements in participating companies to those who seek help. In addition, the Bank has teamed up with BITC in Ireland and the UK to develop various educational initiatives in our community.

At Anglo Irish Bank we continue to support and develop our mentoring programmes for the secondary level students of Warrenmount School in the Liberties district of Dublin. We started this programme in 2000 and since then it has received widespread commitment from staff who, with the Bank's support, offer their time to help students realise their full potential. To date, over 100 members of staff have been involved with the Warrenmount initiative. The mentoring scheme enables the pupils to develop important personal and professional skills which will undoubtedly benefit their future lives and careers. We have also established school programmes with St. Vincent's in Cork and St. Paul's Community College, in Waterford. In London, members of our staff are involved in a mentoring process at schools in the borough of Tower Hamlets.

Our Irish regional offices have taken a proactive role in supporting education in their local area. Our staff in Cork, Galway and Waterford have teamed up with Junior Achievement Ireland to educate students about the various career opportunities available to them in the Irish jobs market. This initiative reinforces to students the link between education and attaining a foothold in the labour market. This year employees from these branches volunteered at thirteen national schools across the country.

Anglo Irish Bank is involved with Young Social Innovators ('YSI') - an initiative which aims to develop social awareness and activism amongst young people. The programme runs in schools throughout Ireland and empowers students to identify social issues which they could help to change. The Bank's relationship with YSI involves monetary support and facilitating staff in providing their business expertise.

We continue to make substantial donations each year to charities nominated by staff in all of our locations. In addition to our continued support of the Irish Cancer Society, a significant number of our Irish employees partake in a 'Give As You Earn' scheme in support of Children Direct, a partnership of five Irish children's charities: Temple Street Children's Hospital, the ISPCC, Enable Ireland, Focus Ireland and ACTIONAID Ireland. Under this initiative, which has been in place since 2004, monthly donations are made by staff and the Bank then matches these payments.

The arts play a pivotal role in our communities and our support of the arts is a very important aspect of our CR agenda. In the past year the Bank has continued its sponsorship of the Abbey Theatre's 'Writer in Association' programme. Furthermore, the Bank has maintained its long-standing relationship with the RTÉ National Symphony Orchestra and the National Concert Hall.

At Anglo Irish Bank, our support of sporting endeavours is both enduring and wide ranging. Our more high-profile sporting sponsorships continue to be the Cheltenham National Hunt Racing Festival and the Irish Women's Rugby team. However, the Bank also remains a very active contributor to sport at a more local, grass roots level where we provide support to numerous local sports clubs.

The Bank commenced a sports scholarship scheme with the National College of Ireland in 2006. This scheme targets talented young athletes and helps them maximise their potential. Under the scheme, the Bank provides the necessary financial support to ensure that these athletes are given every chance to realise their goals. The results from the scholarship scheme to date are very encouraging with recipients of this financial support reaching some of the highest levels in their respective fields.

As a corporate citizen the Bank recognises its responsibility to the environment and aims to operate in a way which minimises its "carbon footprint" as much as possible. It is our policy to recycle all paper, glass and computer consumables where possible. The use of technology, such as email and electronic payments, across the Group has significantly reduced paper usage. Specifically, the Bank now provides the facility to receive this Annual Report electronically. Furthermore, the Bank disposes of all electrical and electronic equipment in a safe and environmentally responsible way as stipulated in the recent EU Waste Electrical and Electronic Equipment Directive.

Anglo Irish Bank is committed to taking significant steps towards becoming more energy efficient and making greater use of cleaner sources of energy where possible. As an example, we purchase all our electricity in Ireland from Airtricity, an innovative company who are committed to supplying renewable energy.

The many CR initiatives which Anglo Irish Bank continues to undertake enable the Bank to promote a positive ethos, not just among our staff but also among our many and varied stakeholders. We remain fully committed to our CR programme and are confident that it will continue to develop and produce further benefits for the Bank and our stakeholders in the years ahead.

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