Crisis, Performance and Corporate Social Responsibility (CSR) in the French Banking Industry: An Exploratory Study

Abstract

This paper analyzes the impact of the current economic and financial crisis on French bank practices in terms of corporate social responsibility (CSR). From this perspective, we sought to determine whether French banks consider the current crisis as an opportunity to develop their CSR practices in an overall performance purpose or as a threat that would hamper these practices and incite the banks to focus on financial and economic performance at the expense of social and environmental concerns. The CSR practices of French banks are analyzed with respect to their business models, solvency and financial performance. To do so, we adopt an exploratory approach and begin with a content analysis of the annual reports from the main French banks for the period 2008-2010. We then conduct linear regressions to study the relationship between social performance, financial performance, solvency and the business model (mutual or commercial). Therefore, the main contribution of this paper is to provide an initial assessment of French bank CSR practices in the current crisis context and with respect to financial performance, quality and the business model.