Abstract
Good reputation is an important intangible asset for any company, but it can be vital for financial institutions. Today, given that the demands on the business environment in terms of social responsibility have greatly increased, the reputation can be worn not only by serious events, but also by the omission or delay of possible and necessary measures and actions to strengthen the sustainability of the activity. In this context, it turned out that there is a strong connection between reputational risk management and the public disclosure of information on the social and environmental impact of the company's activities. This paper proposes a contribution to the empirical decoding of this inter-conditioning through a two-pronged research: on one hand, it investigates the way in which Romanian banking institutions treat reputational risk management and, on the other hand, it analyzes the content of non-financial reports of some financial institutions in the light of the maturity with which they deal with sustainability. The resulting information suggests that there is a delay in understanding the significance of reputational risk and a decoupling of corporate responsibility policies from the risks associated with the business model.
Highlights
Over the last decade, the financial sector has faced complex challenges and growing pressures
This paper presents the results of exploratory research conducted in order to know the concrete way in which the institutions of the financial sector in Romania manage, on the one hand the reputational risk and, on the other hand, the non-financial reporting (NFR)
GRI standards and studies conducted by KPMG (2012) and AugeDickhut, et al (2015), we conducted a questionnaire on reputational risk management in the Romanian financial institutions
Summary
The financial sector has faced complex challenges and growing pressures. Traditional financial sector institutions, especially banks, must respond to the threat of alternative solutions based on new information and communication technologies and, at the same time, refresh their legitimacy as a key pillar of sustainable economic development. In this context, (i) reputation management and (ii) effective communication of social responsibility policies are of particular importance. The paper firstly presents the context of concerns about the reputation and accountability of financial sector institutions, followed by a review of the literature on reputational risk and non-financial reporting.
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
