CSR in the Lebanese banking sector: a neo-institutional approach to stakeholders’ legitimacy

2020 ◽  
Vol 14 (2) ◽  
pp. 143-157 ◽  
Author(s):  
Charbel Chedrawi ◽  
Alain Osta ◽  
Souheir Osta
Keyword(s):  
Banking Sector ◽  
Local Level ◽  
Institutional Pressures ◽  
International Banking ◽  
Content Type ◽  
Social Fabric ◽  
The Social ◽  
Critical Issues ◽  
Corporate Social ◽  
The Impact

Purpose Corporate social responsibility (CSR) has become an issue in the international banking industry, where each bank must assert its stakeholders, the social fabric and the natural environment. In the same time, legitimacy which has become one of the most critical issues for corporations, can be increased in the eyes of other stakeholders or institutions by structurally or procedurally adjusting to institutional influences. By conforming to three external institutional pressures (normative, mimetic and coercive), identified by DiMaggio and Powell (1983), organizations can build, support and gain legitimacy for their activities in specific institutional environments. Design/methodology/approach Using a qualitative approach, this research highlights the input of neo-institutional theory in the CSR context in top Lebanese banks in Lebanon. Findings This paper aims to analyze the impact of neo-institutionalism and the role of stakeholders in legitimizing CSR practices in the Lebanese banking sector. Practical implications Top Lebanese banks cannot simply comply with institutional pressures to gain their legitimacy, they need to develop their CSR activities targeted toward legitimacy-building at the local level; as for managers they cannot simply adopt managerial perspectives instrumentally to gain societal support, they need to adapt such perspectives and practices to the local needs as expressed by their internal and external stakeholders. Originality/value Managers of top Lebanese banks need to proactively engage in managing institutional pressures by adopting and adapting legitimacy-seeking strategies. This study highlights that top Lebanese banks differ in their CSR orientation because of their ownership structure, number of employees and profitability.

CSR at scale: the relationship between corporate social commitment and social progress in developing economies

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Keith L. Whittingham
Keyword(s):  
Regression Models ◽  
Developing Economies ◽  
Local Level ◽  
Social Progress ◽  
Cumulative Impact ◽  
Content Type ◽  
Country Level ◽  
The Social ◽  
Corporate Social ◽  
The Relationship

PurposeIn recent decades, companies have increasingly engaged in Corporate Social Responsibility (CSR), with the goal of providing benefit to both society and the company. While these efforts can have measurable social impact at the local level, the cumulative impact may be much harder to observe and measure, due to the wide variety in both the CSR initiatives and the social challenges they seek to address. This study is an initial investigation of the relationship between national levels of commitment to CSR and national measures of social progress, in a sample of developing countries.Design/methodology/approachUsing country-level participation in the UN Global Compact (UNGC) as a proxy for the level of CSR commitment, and 2018 Social Progress Index (SPI) scores, we investigate the relationship between these variables. SPI component and sub-component scores serve as dependent variables in several OLS regression models. Independent variables included the total number of companies participating in the UNGC, along with economic and socio-political control variables.FindingsRegression models indicate that higher CSR commitment levels are related with higher scores in the primary components of social progress, but only in some sub-components and not others. Practitioners and policymakers can leverage this understanding when developing and supporting corporate social initiatives.Originality/valueTo our knowledge, this is one of the first studies to demonstrate the country-level impact of firm-level CSR commitment and is among the first to employ the Social Progress Index.

Impact of internal and external CSR on organizational performance with moderating role of culture: empirical evidence from Chinese banking sector

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Abdul Waheed ◽  
Qingyu Zhang ◽  
Abaid Ullah Zafar ◽  
Hashim Zameer ◽  
Muhammad Ashfaq ◽  
...  
Keyword(s):  
Organizational Performance ◽  
Banking Sector ◽  
Content Type ◽  
Managerial Implications ◽  
Corporate Social ◽  
The Impact ◽  
The Relationship ◽  
Moderating Role ◽  
Chinese Banking

PurposeThis study investigates the impact of corporate social responsibility (CSR) on organizational performance, especially competitive performance (CP) along with moderating role of the organizational culture (OC) from the banking sector of China. Drawing on the stakeholder theory, the first goal is to examine the relationships between CSR and organizational CP. Second, the purpose is to evaluate the moderation of OC between the relationship of CSR and CP, respectively.Design/methodology/approachSEM using SmartPLS was majorly engaged to ascertain the relationship and to inquire the assumed hypotheses. The convenience sampling was engaged to collect the data from the Chinese banking market with the help of students, colleagues and personal visits.FindingsThe findings exhibited that CSR both external and internal CSR has significant correlations on organizational CP within banking sector of China. Second, the findings revealed a positive moderation influence of OC between the relationships of CSR and organizational CP. The comprehensive analysis of each factor of CSR on organizational CP was autonomously inspected to understand the insights which ensure that how the incorporation of CSR and OC activities may improve organizational CP.Research limitations/implicationsThis study faces numerous limitations related to sample and geographic locations that assure new work possibilities for researchers across the world.Practical implicationsThis study equips insightful information for management on how organizations can obtain CP by consolidating CSR and OC activities as their more productive strategic tools. This article endows with potential theoretical and managerial implications with empirical addition to concerned literature of OC, CSR and organizational CP.Social implicationsUnderstanding OC and CSR activities can provide interesting and helpful insights for the personnel to perform well within the banking institutes.Originality/valueThe topic of CSR and culture has been known as the evolving concept that is getting strong concern for the researchers. The additional work particularly empirical is yet required to explore the insights on CSR and OC themes worldwide, especially in developing nations.

Corporate social responsibility reporting practices in banking companies in Bangladesh

2015 ◽  
Vol 13 (2) ◽  
pp. 200-225 ◽  
Author(s):  
Md. Hafij Ullah ◽  
Mohammad Afjalur Rahman
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Banking Sector ◽  
Annual Report ◽  
Regulatory Change ◽  
Content Type ◽  
Reporting Practices ◽  
Csr Reporting ◽  
Corporate Social ◽  
The Impact

Purpose – This paper aims to provide a deeper understanding of the nature and extent of corporate social responsibility (CSR) reporting in the annual report by banking companies in Bangladesh, identify the impact of regulatory change on CSR reporting and examine whether there is any relationship between the extent of CSR reporting and bank characteristics. CSR movement and CSR reporting practices by financial sector have gathered great momentum in recent years. Banking sector is in the leading position in discharging CSR reporting. Design/methodology/approach – The sample composed of all the 30 banking companies enlisted in Dhaka Stock Exchange (DSE), and the study used content analysis approach for systematic categorization and analysis of the contents reported in the annual report. A total of 97 CSR items classified into seven classes were selected through a relevant literature review, as the expected items and average, standard deviation, coefficient of variation, percentage and correlation, etc. were used as the tools of analysis. SPSS software version 19.0 was used to analyze the data. An ordinary least square (OLS) regression model is fitted to the data for assessing the effect of independent variables on total CSR reporting score. Findings – The study found that the extent of CSR reporting in banking companies in Bangladesh varies from 27.84 to 65.98 per cent, and on an average, they report 47.39 per cent of the expected CSR items in annual report. It is also observed that banking companies in Bangladesh emphasized on linguistic or written form than charts, graphs or pictures in reporting CSR activities to their stakeholders, and the study found no significant influence of the selected bank characteristics on the extent of CSR reporting. Moreover, the study observed significant impact of regulatory change on nature and extent of CSR reporting. Research limitations/implications – The study considered all the listed commercial banking companies in Bangladesh, and the annual report of 2011 was taken as the main source of data. Social implications – Among others, the implications of the study include the following. Banking companies are expected to get a real scenario of CSR reporting of the banking sector in Bangladesh and banking companies with poor CSR contribution expected to be motivated for contributing more in CSR activities. Government and other regulatory bodies can also get detailed information regarding CSR reporting practices for formulating guidelines in this regard. Originality/value – This empirical study on the determinants of extent of CSR reporting using a larger number of expected CSR items contributes toward a better understanding of the CSR reporting practices of the banking companies in Bangladesh. The study used a new independent variable “CSR Expenditure” in justifying its influence on CSR reporting and identified the impact of regulatory change on CSR reporting. The study expects contributing in the enactment of more regulatory requirements for bringing the CSR reporting into a certain framework and encouraging in more CSR reporting in Bangladesh.

Impact of corporate social responsibility on bank’s corporate image

2019 ◽  
Vol 15 (5) ◽  
pp. 710-722 ◽  
Author(s):  
Zainab Al Mubarak ◽  
Anji Ben Hamed ◽  
Muneer Al Mubarak
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Banking Sector ◽  
Corporate Image ◽  
Main Element ◽  
Content Type ◽  
Significant Relationships ◽  
Main Components ◽  
Corporate Social ◽  
The Impact

Purpose The purpose of this study is to investigate the impact of the corporate social responsibility (CSR) on the corporate image in the banking sector. The focus of the study is on four main components of CSR, which are economic, legal, ethical and philanthropic. Design/methodology/approach A model was used in this study to show the impact of different CSR’s factors on corporate image; (240) banks customers were approached using a questionnaire, where (155) responses were received and (144) valid responses entered for analysis. Findings The findings revealed that customers perceive CSR activities as a main element when dealing with banks. The corporate image is strengthened when banks adopt such activities, and positive and significant relationships were statistically found between CSR activities and corporate image. These activities differ in importance as perceived by banks’ customers. Research limitations/implications Enlarging sample size, involving more stakeholders such as employees and managers, and replicating the study in other countries would enrich the findings. Practical implications Banks are advised to consider the study factors in their activities and act as champions of CSR for the welfare of the society to strengthen their corporate image. Originality/value Many studies have discussed the issue of CSR, but very few are found in the Middle East, particularly in Bahrain, and in the banking sector. This paper calls for more investigation in this area for a better understanding of CSR activities and their effects on the corporate image.

scholarly journals The social value of rescuing food, nourishing communities

2016 ◽  
Vol 118 (12) ◽  
pp. 3044-3058 ◽  
Author(s):  
Miranda Mirosa ◽  
Louise Mainvil ◽  
Hayley Horne ◽  
Ella Mangan-Walker
Keyword(s):  
Online Survey ◽  
Social Value ◽  
Evaluation Tool ◽  
Structured Interviews ◽  
Content Type ◽  
Value Evaluation ◽  
The Social ◽  
Corporate Social ◽  
The Impact

Purpose The purpose of this paper is to explore the social value food rescue enterprises can create for both their stakeholders and the wider community “in the meantime” whilst longer term solutions to the problems of insecurity and waste are sought. Design/methodology/approach FoodShare, a New Zealand urban-based social enterprise specialising in food redistribution, served as a case study for this research. Semi-structured interviews (n=13) were conducted with FoodShare staff and key stakeholder groups (food donors, financial donors, recipient agencies and volunteers). In addition, an anonymous online survey (n=40) was completed by the wider organisational volunteer network. The interview guides were structured around a new social value evaluation tool, Social Return on Investment, which is increasingly used to demonstrate the impact of such programmes. Deductive methods were used to code the resulting transcripts to identify key outcomes experienced by FoodShare’s stakeholders. Findings The outcomes of FoodShare’s work differed for the various stakeholders. For food donors, outcomes included “more involved relationships with community”, and “improved perceptions of corporate social responsibility”. Identified key outcomes for the financial donors included “key promotional opportunity” and “do something good”. For recipient agencies, important outcomes were “greater volume of food” and “increased reach”. Volunteers reported “meeting new people”, “a sense of accomplishment in helping others” and “learning new skills”. There were also a number of nutritional and environmental outcomes for the wider community. Originality/value Given the dearth of evidence on the societal value that is created in redistributing unsold food to people in need, this novel perspective makes a significant contribution to the literature in this area.

The unseen costs of flexible working

2016 ◽  
Vol 24 (4) ◽  
pp. 23-25
Author(s):  
Pauline Drury
Keyword(s):  
Social Capital ◽  
Organizational Performance ◽  
Temporary Workers ◽  
Content Type ◽  
Social Fabric ◽  
Contract Workers ◽  
Temporary Contract ◽  
The Social ◽  
Permanent Employees ◽  
The Impact

Purpose To examine the impact of employing temporary contract workers (“temps”) alongside permanent employees on the social capital of the organization. Design/methodology/approach Uses discourse analysis to analyze data from semi-structured interviews with both temporary workers and permanent employees in a range of occupations at seven companies in different industries in Finland. Findings Agency workers, temporary workers or just “temps” – call them what you like, but reliance on individuals employed on a short-term contract basis appears to be here to stay. Since the 1990s, the use of temps has doubled across Europe and is still rising. The argument is that this provides the employer with a cheaper, more flexible workforce. But asking temporary and permanent employees to work together has a significant impact on the social fabric of the organization. Practical implications Suggests that human resource managers review contracts with agencies providing temporary workers. Notes that practices that leave temps feeling like “second-class citizens” can damage the social fabric of the workgroup and undermine team effectiveness. Social implications Highlights potentially harmful effects on social capital and organizational performance resulting from an unequal treatment of temps and permanent employees doing the same job within a workgroup. Originality/value A qualitative study focusing on the feelings and emotions evoked by the growing use of temporary contract workers from the viewpoint of both the temps and the permanent employees they work with.

Linking corporate social responsibility to trust in the banking sector: exploring disaggregated relations

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Toussaint Ciza Bugandwa ◽  
Eddy Balemba Kanyurhi ◽  
Deogratias Bugandwa Mungu Akonkwa ◽  
Benjamin Haguma Mushigo
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Developing Country ◽  
Banking Sector ◽  
Structural Equations ◽  
Legal Responsibility ◽  
Content Type ◽  
Stakeholder Orientation ◽  
Corporate Social ◽  
The Impact

PurposeThis paper has two purposes. First is to operationalise the concepts of corporate social responsibility (CSR) and trust in the context of a developing country, the Democratic Republic of Congo (DRC). Second purpose is to test in a disaggregated perspective the impact of each CSR dimension on trust.Design/methodology/approachData were collected from 264 customers of six banks and processed with exploratory, confirmatory factor analysis and structural equations using LISREL 9.1.FindingsCSR is found to have five dimensions: legal responsibility, social needs responsibility, product responsibility, environmental responsibility and employee responsibility; trust is found to be a three-dimensional construct: integrity, compassion and partnership. Each CSR dimension has a positive impact on customers' perception of trustworthiness.Research limitations/implicationsReliability of trust is not high enough, suggesting the need to deepen research in order to find a more adapted CSR scale for banks. The smallness of sample size might have influenced the robustness of our psychometric results. CSR and trust relationships might be analysed in a more enriched framework including service quality, reputation and banks' employee performance as moderating variables. This paper has measured the two concepts from the customers' perspective only. However, both CSR and trust are best understood in a stakeholder perspective. So, it might be insightful to extend future research in a stakeholder orientation perspective.Practical implicationsBanks from developing countries are also concerned with CSR and should invest in it. Clearly, each dimension of CSR should receive enough importance if Congolese banks are to recover their customers' trust. The findings of the study also suggest that banks' customers are aware of the necessity for banks to comply with the country's legislation. Non-compliance can have severe influence on customers' trustworthiness to banks.Social implicationsFinancial institutions are generally evaluated through financial indicators. The findings suggest that banks customers and other stakeholders begin a shift towards requiring their banks to invest in social and environmental activities in order to improve their local milieu. These aspects are still very neglected, or adopted only as marketing strategies to improve image, without a true willingness to be socially responsive.Originality/valueThe two concepts are measured in a context where they did not receive enough importance (developing country), hence providing new knowledge in the field. Further, a disaggregated approach allowed understanding the way each CSR dimension impacts trust, which had not been the case in previous research.

Corporate social responsibility disclosures (CSRDs) in the banking industry: a study of conventional banks and Islamic banks in Malaysia

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Tze Kiat Lui ◽  
Mohd Haniff Zainuldin ◽  
Ahmad Nazri Wahidudin ◽  
Chuan Chew Foo
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Banking Sector ◽  
Least Square ◽  
Ownership Concentration ◽  
Islamic Banks ◽  
Content Type ◽  
Conventional Banks ◽  
Corporate Social ◽  
The Impact

PurposeThe purpose of this study aims to empirically examine the corporate social responsibility disclosure (CSRD) levels of conventional and Islamic banks in Malaysia. Additionally, as Malaysian banks have different shareholding patterns that are more highly concentrated than those in the developed economies, this study also investigates the impact of ownership concentration on CSRD in both types of banks.Design/methodology/approachThis study employs hand-collected corporate social responsibility (CSR) data from the annual and sustainability reports of 21 conventional banks and 16 Islamic banks in Malaysia during 2010–2017. The data are then run using the pooled ordinary least square (OLS) with robust standard errors and robust regressions models together with all possible factors determining CSRD in the banking sector.FindingsThis study discovers that Islamic banks disclose a higher level of total CSRD than their conventional counterparts after controlling a number of important determinants of CSRD. These results remain consistent for four different dimensions of CSRD, i.e. employees, communities, environment and products and services. In relation to the impact of ownership concentration on CSRD level, the results show that high ownership concentration reduces the level of CSRD by Malaysian banks. However, in an additional interaction test, the result exhibits a complementary relationship between Islamic banks and ownership concentration in influencing CSRD level.Research limitations/implicationsThis study finds that the principle of Islamic accountability has been internalised by Islamic banks, and shaped them to put equal emphasis on the disclosure of CSR practices and the financial information disclosure.Practical implicationsIt is recommended for all banks to ensure the integration of a more comprehensive ethical system, such as theological ethical values in every aspect of their business activities. The findings from this study also highlight the necessity for the central bank to increase their monitoring role, especially towards banks with a more concentrated ownership structure by limiting the size of shareholdings by any particular types of owners.Originality/valueOnly a few studies have compared CSR practices between these two types of banks, and most of them are descriptive and qualitative in nature. This study is the first that uses a robust model with a high R-squared value, which control for all possible factors determining CSRD in the banking sector.

Commitment in corporate social responsibility and financial performance: a study in the Tunisian context

2017 ◽  
Vol 13 (2) ◽  
pp. 370-389 ◽  
Author(s):  
Haifa Chtourou ◽  
Mohamed Triki
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Social Impact ◽  
Negative Impact ◽  
Content Type ◽  
Social Actions ◽  
The Social ◽  
Corporate Social ◽  
The Impact

Purpose The purpose of this study is to measure the impact of commitment in corporate social responsibility (CSR) in its various forms (CSR philanthropy/ altruism, CSR integration and CSR innovation) on the financial performance as measured by certain ratios. Design/methodology/approach Thus, on the basis of a theoretically constructed questionnaire administered to 82 responsibles (general managers, human resources managers and CSR responsibles) operating in four business areas, the authors have developed the extent of the overall CSR commitment and the extent of commitment by CSR action type. Findings The examination of the impact of the CSR commitment on the financial performance has partially approved the social impact assumption. Indeed, only the positive effect of CSR philanthropy is demonstrated. Otherwise, for integrated and innovative actions, the low involvement in these actions in relation to philanthropic ones could explain the lack of significant association. But this result is also important, as it marks the lack of any negative effects. Even if they do not result in a better financial performance, these commitments do not bring harm to the firm. As for the strategic approach predominance on the altruistic approach, this hypothesis is checked only in the case of firms operating in the chemical sector. Research limitations/implications The main limitation of the study is the limited size of the total sample and the sample by industry, so the authors expect a larger sample might be able to provide more meaningful results. Practical implications Then, the study suggests the importance of implementing real CSR strategies for firms that often find doubt and ambiguity when they decide to undertake social actions. However, these results do not mean that companies must refrain from driving altruistic or philanthropic activities but are encouraged to seek a social performance that suits a certain level of integration and innovation. Social implications The most important of all the above is that the negative impact of social actions is not verified in any way, allowing to state that the social actions do not exert a negative effect on the financial performance. So, participation in social problems do not bring harm to the firm. Originality/value The originality of this work comes from: the measure of CSR commitment, and the use of a classification typology of CSR actions in terms of their interaction with the core of the firm’s business as developed by Halme (2009). In fact, based on a theoretically constructed questionnaire, the authors have developed two measures of responsible commitment (level of commitment and intensity of commitment) of some industrial Tunisian firms.

Emergence of social media as new normal during COVID-19 pandemic: a study on innovative complaint handling procedures in the context of banking industry

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Durgesh Agnihotri ◽  
Kushagra Kulshreshtha ◽  
Vikas Tripathi
Keyword(s):  
Social Media ◽  
Structural Equation ◽  
Banking Sector ◽  
Banking Industry ◽  
Equation Modeling ◽  
Media Environment ◽  
Content Type ◽  
Complaint Handling ◽  
The Social ◽  
The Impact

Purpose Banking industry has no option but to remain observant and redraft the contagion playbook as per the situation evolves owing to COVID-19. Therefore, this study aims to develop a model to examine empirically how effectively complaints are handled to control customer retaliation and negative e-word of mouth (eWOM) in such a pandemic situation, where banking institutions are using social media as a key platform. Design/methodology/approach A self-administered questionnaire was distributed among 309 participants who had encountered service failure and experienced complaint handling on Facebook. This study draws upon prevailing literature to test a series of hypotheses through structural equation modeling. Findings The findings show that effective complaint handling has a negative influence on customer retaliation in the social media environment. As a result, customer retaliation was found to have a positive association with negative eWOM. Therefore, this study has revealed that effective complaint handling will lead to decrease in customer retaliation and negative eWOM. Practical implications This study carries an understanding of effective complaint handling efforts by leading banks in the social media environment during the COVID-19 pandemic. This study recommends that customized and effective efforts by the banks can influence customer retaliation and negative e-WOM. Originality/value The study is conducted during COVID-19 pandemic considering the impact of COVID-19 on banking sector, which is a new phenomenon. This study has highlighted how banks have modified their working methodology during pandemic situation by using Facebook as a prominent platform to redress customers’ issues and complaints.

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