Green Banking Disclosures: Are they Beneficial and Important to the Stakeholders?

Abstract

The study attempts to explore stakeholders’ perceptions on the importance and benefits of Green Banking disclosures. The study also analyzes the association of demographic variables with the importance and benefits of Green Banking disclosures. The data for the study is collected from 630 bankers and customers using a structured questionnaire. Demographic variables used for the study are gender, marital status, bank categories (public or private), and nature of stakeholder (banker or customer). Statistical tools applied for analysis are Frequency Analysis, Cross-Tabulation, and Mann-Whitney U Test. The study reveals that the majority of the stakeholders (92%) agreed that it is important to disclose Green Banking activities, 94% of the stakeholders agreed that it is important to communicate Green practices, and 79% of the stakeholders agreed that Green Banking Disclosures are important for the social image of a bank. Mann-Whitney U Test reveals that Bankers and Customers differ significantly in their perception towards the importance of Green Banking disclosures. The study additionally reveals that majority of the stakeholders agreed on the various benefits of Green Banking disclosures. The results of the Mann-Whitney U Test tell that stakeholders of different gender differ in perception regarding the following benefits of Green Banking disclosures: enhancement of knowledge on Green Banking, helps to handle new technologies, and gives a positive impression of bank’s prospects. Stakeholders of different nature (banker and customer) differ in their perception towards the following benefits of Green Banking disclosures, namely: Green Banking disclosures contribute towards the environment, Green Banking disclosures gives a positive impression of bank’s prospects, and Green Banking disclosures helps in long term sustainability of banks. This study will help the banking community to understand the need to disclose their non-financial activities (environmental activities) to both their internal and external stakeholders.