Impact of Corporate Social Responsibility Practices on the Banking Industry in Romania

Abstract

The purpose of this paper is to explore how the corporate social responsibility (CSR) contributes to value creation in the banking industry, and during periods of financial instability. Understanding the key elements of CSR contributes to the fulfillment of the principles of this concept and to the increase of market share, profit and advancement in bank rankings. The present research will be based on the current situation in Romania, being developed a model of CSR applied in Romanian banks. Being in a time of economic instability, the banking industry must make efforts to maintain equilibrium in the financial market. This research can help bank managers to understand what activities to do in the benefit of customers and the community, in order to move towards a sustainable directive. At the end of the research, the findings are presented and the imperatives of the topic discussed.