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.

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.

scholarly journals Corporate Social Responsibility and Customer Loyalty: Exploring the Role of Satisfaction and Corporate Image in the Banking Industry

Market Forces ◽  
2021 ◽  
Vol 16 (1) ◽  
pp. 18
Author(s):  
Munawar Javed Ahmad ◽  
Ali Jawaid ◽  
Muhammad Zulqalnain Arshad ◽  
Sumaira Habib Paracha
Keyword(s):  
Corporate Social Responsibility ◽  
Customer Satisfaction ◽  
Social Responsibility ◽  
Customer Loyalty ◽  
Banking Sector ◽  
Target Population ◽  
Corporate Image ◽  
Mediating Effect ◽  
Corporate Social ◽  
The Impact

This study aims to determine the impact of corporate social responsibility on customerloyalty and satisfaction with the mediating effect of customer satisfaction and the moderatingeffect of corporate image in Pakistan’s banking sector. The study collected 302 responsesfrom the target population. We used a self-administered questionnaire for collecting thedata of banking customers in Pakistan by employing the convenience sampling technique.The study has used the PLS-SEM technique for statistical analysis. The results reveal thatcorporate social responsibility positively influences customer satisfaction. The results alsosuggest that CSR positively affects customer satisfaction. At the same time, CSR has aninsignificant association with customer loyalty. We also found that CS stimulates customerloyalty, and corporate image promotes CL. The results suggest that customer satisfactionmediates CSR and CL. We also found that corporate image does not moderate customerloyalty. Given the importance of CSR, we suggest that banks should allocate considerableresources for CSR activities. CSR is necessary for firms’ growth and sustainability. It also,directly and indirectly, affects the brand image, loyalty, and customer satisfaction. Due to strict regulations, banks have difficulty creating product differentiation; therefore, they relyon strategies such as CSR.

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.

Measuring the impact of corporate social responsibility practices on brand equity in the banking industry in Bangladesh

2018 ◽  
Vol 36 (5) ◽  
pp. 806-822 ◽  
Author(s):  
Md. Hafez
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Brand Equity ◽  
Banking Industry ◽  
Corporate Image ◽  
Brand Awareness ◽  
Content Type ◽  
Corporate Social ◽  
The Impact ◽  
The Relationship

PurposeThe banking industry in Bangladesh is now conducting business under the growing pressure to conform to every aspect of corporate social responsibility (CSR) for the welfare of their clients and society. The value of CSR practices is attributed to the relationship between corporate image, brand awareness, brand equity (BE), competitive advantage and financial result. The purpose of this paper is to measure the impact of CSR on BE and to establish the moderating impact of corporate image and brand awareness.Design/methodology/approachStructural equation modeling was used to test the proposed hypotheses using a sample of 200 public and private bank customers in Bangladesh.FindingsThe results of this study demonstrated that CSR has a significant direct effect on the corporate image, brand awareness and BE. The results also confirm that corporate image and brand awareness partially mediate the relationship between CSR and BE.Practical implicationsThe findings indicate that successfully CSR practices will enhance a bank’s image in the mind of customers. Customers will feel that they are contributing to social causes because they are receiving services from socially responsible organizations. CSR practices also create customer awareness regarding the financial services provided by a bank. Consequently, good reputation and brand awareness contribute to building strong BE for banks.Originality/valueThis research shows the mediating role of brand awareness and corporate image with CSR and BE in the context of the banking industry in Bangladesh which is rarely studied. Therefore, the findings of this study will add value to the existing literature.

Consequences of corporate social responsibility on employees

2019 ◽  
Vol 49 (1) ◽  
pp. 231-249
Author(s):  
Evans Asante Boadi ◽  
Zheng He ◽  
Eric Kofi Boadi ◽  
Josephine Bosompem ◽  
Philip Avornyo
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Social Exchange ◽  
Structural Equation ◽  
Social Exchange Theory ◽  
Banking Sector ◽  
Work Motivation ◽  
Content Type ◽  
Time Lagged ◽  
Corporate Social

Purpose The purpose of this paper is to draw on affect social exchange theory and related literature to develop and test a research model linking employees’ perception of corporate social responsibility (CSR) to their outcomes [performance and organisational pride (ORP)] with moderating variables: perceived work motivation patterns (autonomous and controlled motivation) to sustain firm’s operations through their employees. Design/methodology/approach The authors used Ghana as a case for this study due to recent turbulences in the banking sector of Ghana. A sample data of 244 subordinate/supervisor dyads from rural and community banks was collected with a time-lagged technique and analysed through a structural equation modelling for this study. Findings These employee’s perceptions of CSR positively related to their performance and ORP. Autonomous motivated employees had a stronger positive moderated impact on perceived CSR-Performance link whereas controlled motivated employees recorded a stronger impact on perceived CSR-ORP link. Practical implications Based on these results, managers and human resource (HR) professionals can aim at acquiring favourable employees’ perception of their firms’ CSR initiatives. In that, it can help firms to remain in business particularly in difficult times. Also, autonomous and controlled motivators may seem inversely related, however, they are not contradictory to each other. Both can coexist within a firm and it is crucial that HR professionals and managers endeavour to balance them discreetly to attain organisational goals. Originality/value Despite the growing interest in CSR across continents, CSR outcomes on employees among small and medium scale firms especially in Africa has fairly been toned-down by respective management of firms, governments and researchers.

Mandatory corporate social responsibility in India: reporting reality, issues and way forward

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Pawan Taneja ◽  
Ameeta Jain ◽  
Mahesh Joshi ◽  
Monika Kansal
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Mandatory Reporting ◽  
Content Type ◽  
Csr Reporting ◽  
Reporting Requirements ◽  
Expectation Gap ◽  
The Government ◽  
Corporate Social ◽  
The Impact

Purpose Since 2013, the Indian Companies Act Section 135 has mandated corporate social responsibility (CSR) reporting by Indian central public sector enterprises (CPSEs). CSR reporting is regulated by multiple Government of India ministerial agencies, each requiring different formats and often different data. This study aims to understand the impact of these multiple regulatory bodies on CSR reporting by Indian CPSEs; evaluate the expectation gap between regulators and the regulated; and investigate the compliance burden on CPSEs. Design/methodology/approach An interview-based approach was adopted to evaluate the perspectives of both regulators and regulated CPSEs on the impact of the new regulations on CSR reporting quality. The authors use the lens of institutional theory to analyse the findings. Findings Driven by coercive institutional pressures, CPSEs are overburdened with myriad reporting requirements, which significantly negatively impact CPSEs’ financial and human resources and the quality of CSR activity and reports. It is difficult for CPSEs to assess the actual impact of their CSR activities due to overlapping with activities of the government/other institutions. The perceptions of regulators and the regulated are divergent: the regulators expect CPSEs to select more impactful CSR projects to comply with mandatory reporting requirements. Originality/value The findings of this study emphasise the need for meaningful dialogue between regulators and the regulated to reduce the expectation gap and establish a single regulatory authority that will ensure that the letter and spirit of the law are followed in practice and not just according to a tick-box approach.

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

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Agung Nur Probohudono ◽  
Astri Nugraheni ◽  
An Nurrahmawati
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Statistical Testing ◽  
Content Type ◽  
Islamic Bank ◽  
Csr Disclosure ◽  
Corporate Social ◽  
The Impact ◽  
Positive Effect

Purpose The 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/approach Islamic 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. Findings This 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/value This 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.

The impact of the integrated reporting framework on corporate social responsibility (CSR) disclosures – the case of South African mining companies

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Barry Ackers ◽  
Susanna Elizabeth Grobbelaar
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
South African ◽  
Mining Industry ◽  
Integrated Reporting ◽  
Content Type ◽  
Stakeholder Orientation ◽  
Mining Companies ◽  
Corporate Social ◽  
The Impact

Purpose Despite initially being lauded as a revolutionary approach for companies to account to all stakeholders, the shareholder orientation of the international integrated reporting (<IR>) framework gave rise to questions about whether integrated reports would still sufficiently disclose pertinent corporate social responsibility (CSR) information. This paper aims to investigate the extent to which the <IR> framework has impacted the CSR disclosures contained in integrated reports of South African mining companies. Design/methodology/approach The study deployed a mixed methods research approach, involving thematic content analysis of the CSR disclosures contained in the integrated reports of mining companies with primary listings on the Johannesburg Stock Exchange. The resultant qualitative data were subsequently analysed using a T-test of difference. Findings The study observes that the release of the <IR> framework appears to have had a limited impact on the CSR disclosures in the integrated reports of most companies included in the study. However, where significant differences were identified, the CSR disclosures of some companies were positively impacted after the release of the <IR> framework, whilst others were negatively impacted. Research limitations/implications As South Africa is acknowledged as a leader in the global <IR> movement, the paper’s observations have global relevance and suggest that the fundamental principles of <IR> should be reconsidered to improve the alignment with stakeholders’ information needs, as originally conceived. Originality/value Despite the shareholder orientation of the <IR> framework, the global mining industry is acknowledged as being at the forefront of implementing CSR interventions to mitigate the adverse impacts of their operations on stakeholders, supporting a stakeholder orientation. As the adoption of <IR> continues to gain traction around the world, this paper’s contribution is that it represents one of the few papers to use the global reporting initiative G4 indicators to specifically examine the impact of <IR> framework on the CSR disclosures on the South African mining industry, where both <IR> and CSR reporting are quasi-mandatory disclosure requirements.

Does corporate social responsibility affect dividend policy? Empirical evidence in the French context

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Olfa Ben Salah ◽  
Anis Ben Amar
Keyword(s):  
Corporate Social Responsibility ◽  
Panel Data ◽  
Social Responsibility ◽  
Dividend Policy ◽  
Least Squares Method ◽  
Positive Impact ◽  
Alternative Measure ◽  
Content Type ◽  
Corporate Social ◽  
The Impact

Purpose The purpose of this paper is to focus on the impact of corporate social responsibility (CSR) on dividend policy in the French context. In addition, the authors seek to determine if the individual components of CSR influence dividend policy. Design/methodology/approach This study uses panel data methodology for a sample of French non-financial firms between 2008 and 2018. Generalized least squares method is used to estimate the models. Findings Using panel data methodology for a sample of 825 observations for the period 2008–2018, this study finds a positive impact of CSR practices on dividend policy. The authors also find that individual components of CSR positively influence dividend policy. To check the robustness of the results, this study further runs a sensitivity tests, including an alternative measure of dividend policy, all of which confirm the findings. Practical implications This study has examined the impact of CSR on dividend policy in France and may have implications for regulatory, investors, analysts and academics. First, the involvement in CSR best practices encourages companies to pay more dividends to investors. Therefore, investors are more motivated to invest in socially responsible firms than socially irresponsible firms. Second, given the association of CSR with the quality of accounting information and financial markets, regulators should step up recommendations relating to the different societal dimensions of CSR. Originality/value While little previous work has focused on the causal link between CSR and dividend policy, this research is the first, to the authors’ knowledge, to have looked at the impact of CSR on dividend policy in France.

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