Corporate Social Responsibility Of Banks Research Articles

Comparative analysis of QISMUT+3’s Islamic corporate social responsibility

PurposeThe purpose of this study is to analyze the impact of corporate social responsibility (CSR) disclosure on the financial performance of Islamic banks across nine countries as major markets that contribute to international Islamic bank assets (Indonesia, Malaysia, Saudi Arabia, UAE, Kuwait, Qatar, Turkey, Bahrain and Pakistan or further will be called QISMUT + 3 countries).Design/methodology/approachIslamic Social Reporting Disclosure Index (ISRDI) is being used as a benchmark for Islamic bank CSR performance that contains a compilation of CSR standard items specified by the Accounting and Auditing Organization for Islamic Financial Institutions. The secondary data is collected from the respective bank’s annual reports and it used the regression analysis techniques for statistical testing.FindingsThis study found that CSR disclosure measured by ISRDI has a positive effect on financial performance. Almost all ISRDI sub-major categories have a positive effect on financial performance except the “environment” subcategory. The highest major subcategory for ISRDI is the “corporate governance” category (82%) and the “environment” category (13%) is the lowest. For the UAE, Kuwait and Turkey, the ISRDI is positively affected by financial performance and the other countries on this research are not.Originality/valueThis study highlighted the economic benefits of social responsibility practices as a part of business ethics in nine countries that uphold the value of religiosity. Thus, the development of the results of this research for subsequent research is very wide open.

CORPORATE SOCIAL RESPONSIBILITY IN BANKING SECTOR: A STUDY ON INDIAN BANKING SECTOR

CORPORATE SOCIAL RESPONSIBILITY IN BANKING SECTOR: A STUDY ON INDIAN BANKING SECTOR

Islamic Bank and Corporate Social Responsibility

Research purposes– Corporate Social Responsibility (CSR) is one of the rapidly growing issues in today's business and has become a new norm in the social system, including for Islamic financial institutions, one of which is the Islamic Bank. With the shift in the world paradigm related to the responsibility of a business, CSR has become a substantial issue for academics and practitioners in the last two decades and has become an intense and interesting discussion to date. This study aims to determine the development of research trends in CSR of Islamic Banks around the world published by leading journals related to this theme.
 Research methodology – The author uses qualitative-quantitative research with a bibliometric analysis approach. The data used consists of indexed research publications, then processed and analyzed using the Vos Viewer application to know the bibliometric map of the development of CSR of Islamic Bank research in the world.
 Findings – The results of this study are to identify authors, institutions, countries, and keywords related to CSR of Islamic Bank.
 Limitation – The data used in this study are limited to the Scopus database and English reviews.
 Originality/Value – To the author's knowledge, this study is the first to discuss literature related to CSR of Islamic Banks in the world from a bibliometric aspect. The results of this study are expected to help researchers and practitioners to further explore research related to this theme.

Dimensions and Orientation of Sharia Banking Corporate Social Responsibility In the Society 5.0

Objective: This article aims to examine the scope of the implementation of Corporate Social Responsibility in Sharia banking as well as orientation that sharia banking should do in the 5.0 Society era.Design/approach: This writing uses a qualitative descriptive approach.Findings: In general, this article succeeded in formulate the form or orientation of Corporate Social Responsibility that should be implemented by sharia banking, more promoting community service that is minimal covering 6 dimensions, namely community settlements, energy, prevention/disaster mitigation, health, food and logistics.Originality/value: This paper is believed to be important and significant especially in an increasingly advanced age. With the emergence of the Society 5.0 is expected to synergize with Sharia banking CSR program to accelerate and provide effectiveness on the social responsibility of sharia banking that is perceived by the community, as well as the input for Sharia banking institutions so that the CSR program should be oriented to the acceleration of social welfare, to provide facilities to the community as a capital to face the global challenge.

Internal vs. External Corporate Social Responsibility at U.S. Banks

This study analyzes the effect that banks’ investments in corporate social responsibility (CSR) have on bank performance. I find that banks’ investments in CSR have a positive impact on financial performance, measured in terms of both accounting performance and stock market value. However, not all CSR investments are the same. I distinguish between internal CSR and external CSR. This distinction is based on which constituents are most directly affected by the CSR initiatives. Separating bank CSR activities into internally focused and externally focused ones provides evidence on how different constituents value bank CSR activities. I find that CSR-related value creation is primarily a result of banks’ external investments and not a result of their internal investments. I also consider how internal and external CSR activities influence bank risk. I find that banks with higher CSR scores are less risky. This is driven by their external CSR investments and not by their internal CSR investments. Banks with a larger gap between internal and external CSR investments have worse performance, lower valuations, and greater risk than banks with a more balanced distribution between internal and external CSR investments. Banks which are committed to long-term structural CSR investments that benefit a broad community of stakeholders are rewarded by the financial markets. Moreover, from a regulatory policy perspective, these same banks are less risky and less likely to contribute to systemic macroeconomic risk.

Corporate Social Responsibility Practices: A Study on Foreign Commercial Banks in Bangladesh

Corporate Social Responsibility (CSR) is an important portion of an enterprise, bank or other industry. Corporate social responsibility increases the growth and success of a firm. Corporate Social Responsibility means responsibility for the people of the society about the country. The development of a society or a country happens only when the financial institutions like the bank of the country properly maintain their corporate social responsibility. Furthermore, there is a positive relationship between corporate social responsibility and customer perceptions towards the corporations. In our paper, we discussed the theoretical framework of the CSR. The theoretical framework includes bright sides of the CSR and limitations of the CSR. We also analyze 5 commercial banks Bank Al- Falah, Habib Bank Ltd., HSBC, Commercial Bank of Ceylon, and Standard Chartered Banks CSR contribution in corporate social responsibility. We compare their contribution in 2018 and 2019 year. We see that some areas of contribution decrease in 2019 as compared to 2018. There is no contribution to infrastructure development. At last, we recommend foreign commercial banks to increase CSR contribution in some specific areas. Keywords: Corporate Social Responsibility, Foreign Commercial Banks, Social Contribution, Welfare. DOI: 10.7176/EJBM/12-21-16 Publication date: July 31 st 2020

Effects of CSR and CR on Business Confidence in an Emerging Country

Corporate social responsibility has been one of the main pillars of development for companies in developed countries and studies are being conducted for developed countries and the productive sector of the economy. Therefore, the main objective of this paper is to analyze the relationship between corporate social responsibility (CSR), corporate reputation (CR), and business confidence in the context of the banking sector in an emerging country (Peru). To test the hypotheses presented in this paper, we sent a survey to 1745 banking executive officers of the branch offices in Peru. These key individuals were selected as the target population of the study because the authors sought to study the management’s perception of CSR and business confidence. From the data obtained from the survey, it has been determined that the strategic consideration of CSR in Peruvian banks directly influences the perception of business confidence. Secondly, it has been demonstrated that the strategic consideration of CSR in Peruvian banks positively influences corporate reputation and, finally, the perception of the importance of the corporate reputation of Peruvian banks and significantly influences the perception of business confidence by the managers. The main contribution of this paper is that it analyzes empirically how business confidence is perceived by managers, who are the main agents involved in implementing CSR actions, based on their opinion of the strategic consideration of CSR and the perception of CR in a context barely investigated, an emerging country.

Corporate social responsibility of Islamic banks: Malaysian practitioners’ outlook

PurposeThe purpose of this paper is to investigate Malaysian practitioners’ general perspective on corporate social responsibility (CSR) of Islamic banks and their views on having a special CSR framework.Design/methodology/approachThis study used semi-structured face-to-face interviews, which contained both qualitative and quantitative data. The study also used observation and document review to support the data drawn from the research participants whenever necessary.FindingsIn total, 34 practitioners from all 16 Islamic banks in Malaysia responded to the interview questions designed for this purpose. The results show that the majority of the research participants viewed positively that Islamic banks should have a special CSR framework.Practical implicationsThe Islamic concepts of CSR will be of interest not only to academicians but also, especially, to Islamic financial institutions. This paper will also send a strong signal to regulators that they should develop and introduce an Islamic CSR framework to Islamic financial institutions, especially Islamic banks.Originality/valueThis paper contributes to the growing debate on CSR among Islamic financial institutions, especially in the Islamic banking industry, by investigating practitioners’ views on having a CSR framework. In addition, to the knowledge of the authors, this is the first research that has involved Chief Executive Officers, Heads of Shari’ah, and Heads of Corporate Communications as research participants to talk about the CSR of Islamic banks.

Effectiveness of Marketing Mix Strategies on Customer Satisfaction, Loyalty and Retention in Banking: Case Study of Zenith Bank Plc, Nigeria

The objective of this study was to ascertain the effectiveness of Zenith Bank marketing mix strategies on customer satisfaction, loyalty and retention and how to improve on them. Data were collected from primary sources through a questionnaire made up of descriptive options in a 5- scale Likert research format. The data were subjected to empirical analysis using the SPSS software to estimate the mean distribution, standard deviation, Pearson’s correlation coefficient, analysis of variance (ANOVA) as well as multiple regression analysis to test the set hypotheses.
 The result of the analysis revealed that though each of the elements of the marketing mix strategies influences the effectiveness of Zenith Bank marketing, product, process and personnel were more significant in contributing to meeting customer satisfaction, customer loyalty and customer retention. The study recommended the need for the Bank to continue to improve on these significant strategies as well as improving on other strategies that could attract, meet and exceed customer expectations such as enhancing transaction process flow, continuous training of the Bank personnel and providing the latest technological innovations to ensure error free transactions. The study further recommended the need to increase the Bank corporate social responsibility by sponsorship of social events that could increase its marketing visibility as well as avoiding incidences of cash shortage at ATM points to reduce customer complaints.

CSR narrative under Islamic banking paradigm

Purpose This paper aims to understand corporate social responsibility (CSR) narrative under the Islamic banking paradigm by three aspects, narrative review of the literature, review of the definitions of CSR and review of factors that cause divergence from conventional percepts. Design/methodology/approach This is a theoretical paper based on literature and aims to understand the CSR narrative under the paradigm of Islamic banking. Findings Religion brings new dimensions of ethics and expands the scope of morality in business. Islamic banking is a new wave of corporation whose social goals are as much important as making profit. There are diverse narrations and definitions prevailing in the literature of CSR under the Islamic paradigm which also encounters the aspects of divergence from conventional percepts. The academic debate of CSR-Islamic banking brings on surface a plausible CSR paradigm, that is to guide the role of Islamic banking in society under the Islamic provisions, ethics and axioms. This paper also paves the way for future direction, particularly in terms of a holistic understanding of CSR narrative under the Islamic banking paradigm. Research limitations/implications This is a theoretical paper; it primarily discusses the theoretical aspects of CSR narrative under the paradigm of Islamic banking, while it does not give insight into the empirical narrative or disclosure of CSR in Islamic banking. Practical implications The theoretical review of literature brings plausible understanding, that Islamic banking is a new wave of corporate and has standings on divine guidance. The structure of the institution in its foundation insists on real economic activity. The legitimacy of Islamic banking has roots in ethical compliance and in inculcating the broader interests of stakeholders. There are several social responsibilities, which are expected from the practitioners of Islamic banking. The practitioners as well must understand that the CSR of Islamic banking is far beyond the conventional percepts of CSR. Originality/value There are several normative and theoretical studies in the domain of CSR-Islamic banking. It is hard to find a comprehensive narrative review of such literature. This review is unique, which brings a holistic understanding of CSR narrative under the Islamic banking paradigm.

Role of Mass Media in Promoting Banks Corporative Social Responsibility

Despite the fact that the corporate social responsibility (CSR) is an actively studied area of knowledge and in large quantities takes root into activity of large organizations, the degree of its representation in the mass media is very low. The article gives an assessment of the CSR characteristics in general, in the banking sector, in particular. It presents the characteristics and features of formation stages for the banks CSR in Russia. It examiners the advance of Sberbank in mass media as a socially responsible bank, analyses positive and negative references to Sberbank's CSR in the media monitoring system «Medialogia», specifies the most significant informational occasions, reveals the problems in promoting the concept of Sberbank's CSR through the mass media. The level and quality of disclosing information on Sberbanks social responsibility is insufficient, like the insufficiency of public information awareness of the principles of social responsibility and problems of its implementation. The article emphasizes the complexity of the CSR issues in terms of developing the public interest by means of the mass media.

Client Awareness and Perception of CSR Activities in Islamic and Conventional Banks: a Survey in Bahrain

Corporate social responsibility (CSR) is considered one of the highest priorities of corporations and is one of the hottest topics in academic research, that several researchers found positive significant relationship between company’s performance and CSR activities. The current study aims to explore the clients’ awareness and perception of CSR in Islamic and conventional banks across Bahrain. The study surveyed 305 clients, 175 from the Islamic banks, and 130 from the conventional banks. The results indicated that the clients of Islamic banks are more aware of their banks CSR activities than the clients of the conventional banks. With regard to the clients’ perception of their banks CSR, it has been found that Islamic banks clients have more positive perception about their banks’ CSR than those of the conventional banks. Additionally, the results indicated that there are statistically significant differences in the clients’ awareness and perception of banks’ CSR activities when the clients are grouped according to age, income, education, and bank type.

The impact of corporate governance characteristics on banks’ corporate social responsibility disclosure

PurposeThe purpose of this paper is to investigate the extent and trend of corporate social responsibility (CSR) reporting in commercial banks in Poland and examine the link between corporate governance characteristics, namely size of the bank, ownership, boards size, board diversity and CSR disclosures in the banks.Design/methodology/approachThe annual reports and CSR reports of the banks were examined between 2008 and 2015 using content analysis and panel data analysis.FindingsThe results indicate that banks improved their CSR reporting practices during examined period. There are statistically significant differences in the level of CSR disclosures between banks with a different ownership structure. Both foreign majority shareholder group as well as state majority shareholder group have a positive influence on CSR as compared with Polish majority shareholder (PMS) group (excluding State). Moreover, being listed on stock exchange has a positive influence on CSR as compared with not being listed. Further, the results also revealed that there is a significant positive effect of almost all variables related to the management board, namely, size, female board leadership and foreign board members on CSR disclosure, whereas all supervisory board variables and all considered ownership variables have no statistically significant impact on CSR disclosure.Originality/valueThis research contributes to the existing literature because the banking sector is often excluded from CSR studies due to its specific legal regulations and seemingly little environmental impact. Moreover, there are only few studies analysing the effect of boards characteristics on the banks CSR disclosure, especially in emerging countries. This study is also the first of this kind focusing on the two-tier system. Furthermore, the study provides the instrument to measure CSR in the banking industry. Finally, the research stresses the crucial implications for banking sector, shareholders and regulatory bodies.

Corporate social responsibility (CSR) disclosure and banks’ fi-nancial performance in Five ASEAN countries

The financial industry in particular the banking sector plays an important role in the economy. The Bank acts as a financial intermediary in the society. Thus, it is important that banks are well-managed and act responsibly. The concept of corporate social responsibility (CSR) is an integral concept for realizing a responsible banking practice. A responsible bank is believed that it will be more sustainable in carrying out its role as an intermediary of funds in the society. This study is preliminary work that attempts to examine the social responsibility of banks in ASEAN-5. The objective of this research is to analyze the level of CSR in commercial banks in ASEAN-5, namely Indonesia, Philippines, Malaysia, Singapore, and Thailand in 2014. This study describes the level of CSR based on the analysis of disclosure in company's report using indicators from GRI G4 Sustainability Reporting Guidelines and GRI G4 Sector Disclosures: Financial Services. This study finds that the overall score of CSR disclosure of all listed banks is low. The CSR of commercial banks in Thailand is the highest. Banks, which published separate CSR or Sustainability Report, show a higher level of CSR compared to banks which include CSR section in their Annual Report. In addition, this study finds that CSR is positively correlated with financial performance.

Impact of Corporate Governance Characteristics on Corporate Social Responsibility Disclosure Index – A Case Study of Islamic Banks in Pakistan

The relationship between corporate governance characteristics and Corporate Social Responsibility (CSR) disclosure was analyzed empirically in this study. For this purpose, data was collected from Islamic banks in Pakistan for the time period spanning from 2009-2016. Regression analysis was used along with descriptive statistics, correlation analysis and incremental regression analysis. The study found significant findings in favor of hypotheses regarding CEO duality, profitability and board independence for Islamic banks. All the empirical findings concluded that the determinants of corporate governance have a momentous influence on the reporting of CSR of Islamic banks in Pakistan. The outcomes of this research are valuable for policy makers and managers for the evaluation of the existing principles of corporate governance structure by considering its influence on CSR disclosure in the Islamic banking sector.

The impact of corporate social responsibility (CSR) knowledge on corporate financial performance: evidence from the European banking industry

PurposeAssuming that corporate social responsibility (CSR) is “a process of accumulating knowledge and experience” (Tang et al., 2012, p. 1298), this paper aims to investigate whether and how CSR knowledge (Asif et al., 2013; Kim, 2017) affects financial performance in the European banking industry.Design/methodology/approachThe empirical research analyses a panel of 72 banks from 20 European countries over seven years (2009-2015). The hypotheses were tested using fixed effects regression analysis and the two-stage Heckman model (1976) to address endogeneity bias.FindingsThe findings of this work are twofold. First, consistent with the concept of knowledge absorptive capacity (Cohen and Levinthal, 1990), the internal CSR of banks (Kim et al., 2010) positively affects citizenship performance (Peterson, 2004a). Second, in line with the reputational effect of CSR (Margolis et al., 2009; Bushman and Wittenberg-Moerman, 2012), citizenship performance is a positive predictor of a bank’s financial performance.Practical implicationsFrom a knowledge-based perspective, the analysis shows that accrued internal CSR knowledge plays a key role in implementing effective CSR programs for external stakeholders. Moreover, this study shows how CSR engagement in external initiatives can improve a bank’s competitiveness because of the relationship between citizenship performance and the positive reputation of a bank.Social implicationsThe management of CSR initiatives may favor the sharing of knowledge and creation of trust relationships among banks and internal and external stakeholders. CSR knowledge contributes to expanded value creation for both society and banks.Originality/valueThe knowledge management perspective of CSR provides new insights into the sustainability of banks’ business models and contributes to advancing the debate on the governance modes and effects of CSR. Moreover, the CSR perspective offers additional opportunities for addressing the challenges associated with sharing tacit knowledge within and outside of organizations.

Social responsibility of banks in the function of comparative advantage on the market

The business operation of companies is not neutral and is not perceived any more in terms of profitable operations, but also in terms of whether it is beneficial for the society. Social responsibility contributes to improving relationships with key stakeholders, thus contributing to the long-term sustainability of the company. The paper points out to the positive link between corporate social responsibility (CSR) and the reputation of the bank. Without CSR, neither the improvement nor the expansion of banking operations is possible. The aim is to point out that profit and CSR are not opposed categories and that the CSR of banks represents a strong comparative advantage on the market. The paper gives a theoretical and practical overview of the concept of corporate social responsibility (CSR), with a focus on the banking sector.

COMPARATIVE ANALYSIS OF PROBLEMS MILITATING AGAINST CORPORATE SOCIAL RESPONSIBILITY IN SELECTED BANKS AND MANUFACTURING FIRMS IN NIGERIA

This study Summary presents a comparative investigation of the problems militating against Corporate Social Responsibility (CSR) in selected commercial banks and manufacturing fi rms in Nigeria. A survey research design was used while purposive sampling method was employed to select fi ve commercial banks and five manufacturing firms. Primary data were garnered with the aid of a questionnaire from 216 and 205 respondents from commercial banks and manufacturing firms respectively. Problems militating against the practice of CSR activities of selected companies were analysed using the Mann-Whitney U Test as the analytical tool. The result shows that there is no significant difference between the problems militating against the practice of CSR in commercial banks and manufacturing firms in Nigeria. The reason is that for all the variables tested, the p value is greater than 0.05. The study recommends that corporate managers should properly address these problems, such as inadequate financial resources and unethical practices like inside dealings among others, in order to achieve the benefits of actively engaging in CSR such as enhancement of customers’ loyalty and a positive corporate image.

The Effect of Corporate Social Responsibility Disclosure on Financial Performance: Evidence from Credit Institutions in Vietnam

This study examines the relationship between corporate social responsibility (CSR) disclosure and financial performance of banks in Vietnam over the period 2011 – 2016. By using content analysis to approach CSR related data as well as ordinary least square (OLS) estimator to analyse data, the finding of this study indicates that there is a significant negative relationship between CSR disclosure and financial performance of commercial banks in Vietnam. This result might be explained by additional requirements of the law for social responsibility while banks are in difficult situation as a result of economic slowdown during researched period. Together with that, perception of banks’ customers toward banking corporate social responsibility of Vietnam also contributed to build up this negative linkage.

The Impact of Financial Performance on Corporate Social Responsibility: An Empirical Analysis of Conventional and Islamic Banks of Pakistan

The study explores how financial performance (FP) affects the corporate social responsibility (CSR) of the banking sector of Pakistan. Further, it also elaborates the comparison between FP and CSR of Islamic and conventional banks of Pakistan. The study is based on the annual reports of banks listed at Pakistan Stock Exchange (PSE) for the years 2010-2016. The study used several panel data diagnostic tests and three regression models to check the relationship between FP and CSR of Islamic and conventional banks of Pakistan, while taking leverage and size as control variables. The results indicate that in case of conventional banks the relationship between ROE and CSR is negative. Here, the results are consistent with the agency theory which states that investment in CSR related activities is a waste of resources. While return on asset (ROA) is depicting negative and insignificant relationship with CSR, which depicts that FP does not have any impact on the investment in CSR initiatives. In the case of Islamic banks, the relationship between return on equity (ROE) and CSR is positive and significant. Here, the results support social contract and stakeholder theories. The research has important practical consequences that will help the banking industry managers to adopt optimal investment strategies about CSR related activities. The study provides guidelines to conventional banks to invest more in CSR in the same way Islamic banks are doing. The findings of the study lay some foundations upon which a more detailed analysis of CSR of banks could be based.