Corporate social responsibility in the banking sector finance essay

This helps in excellence in business and personal performance and enables the bank to attract and retain employees. Non-Financial Reporting Talking about the corporate social responsibility program RBI followed many international initiatives to highlight the importance of the notice like — 1.

The key dimensions of CSR are customers, employees, business partners, communities and investors. According to Frankental "CSR is a vague and intangible term which can mean anything to anybody, and therefore is effective without meaning. Introduction With over years of banking experience, founded inBarclays has its international presence in over 50 countries: Among the two common methods of measuring CSR, to the researcher is going to use a reputation index to measure the Corporate Social Performance in Bangladesh.

Chapter three disclosed the methodology of the study. This means that quantitative method allows us to present data in a more precise format than categorical as each data value can be assigned a position on a numerical scale which allows the researcher to analyse data using a far wider range of statistics.

A Theory of the Firm Perspective.

This point seems to be really interesting, due to the fact that other authors Barnea and Rubin, suggest the existence of an opposite trend linked to the same phenomena Managerial opportunism. A lot of businesses more than previously are becoming more active in contributing to society and this add to the financial decisions that are taken by these institutions.

Following are community welfare, programs for child welfare and protection of environment. Accounting-based performance measures are return on assets ROAtotal assets, sales growth, asset growth, and operating income growth.

Roberts and Dowling, ; Fombrun, Gardberg and Barnett ; Porter and Van Der Linde and Spicerposit that CSR initiatives can lead to reputation advantage as improvements in invested trust, new market opportunities and positive reactions of capital market would enhance The idea of the second group of theorists is that there is no relationship between corporate social responsibility and corporate financial performance McWilliams and Siegel, ; Ullmann, ; Aupperle, Carrol and Hatfield ; Waddock et al.

The research carried out by the Market and Opinion Research International MORI under the CSR Europe campaign on the sample of 12 thousand citizens representing 12 countries shows that around 70 percent of consumers buying a product or a service take into account the level which a given producer is involved in social and environmental activity to.

Other studies highlight corporate social responsibility and performance, both in the short term-on the basis of Abnormal return measure and market actions-and in the long term Aupperle et al.

Positive reputations have often been linked to positive financial returns. At the same time, every fifth consumer is ready to pay more for goods produced by a socially responsible company. The researcher also made efforts to contact individuals who are experts in the banking and financial sector that were mentioned in the course of the interview.

Barclays is the major bank that led the way in creating a set of environmental and social guidelines, known as the Equator Principles EP.

If successful, it brings the company credibility and trust, protect employer brand among its various stake holders and also engagement and retention of employees. Barclays targeted by Thai and Indian activists over investments [online].

This means that when the researcher gathers data by participant observation, interviews, and the examination of documentary materials, little measurement may be involved.

Index asset management, Active asset management, iShares. This traditional contract between business and society has changed over the years because of the addition of new social value responsibilities placed up on businesses.

Hence rather than having any preconceived idea on the direction of the relationship, there needs to be an open view on this: This implies that the researcher only observed how both the GCB and its clients transacted business as it unfolded in its natural settings without taking part in it.

One reputation index was generated by Moskowitzwho over a period of several years rated a number of firms as outstanding, honorable mention, or worst Moskowitz, Journal of Banking & Finance. Volume 37, Issue 9, SeptemberThe question of whether adopting corporate social responsibility (CSR) Other studies on the banking sector engaged in CSR activities focus on a similar issue, but not on the association between CSR and FP.

Corperate Social Responsibility In Banking Institutions Finance Essay

Being a major global finance services provider Barclays is into retail banking, credit cards (the first bank to introduce one in UK), corporate banking, investment banking. Corporate Social Responsibility in the Banking Sector corporate social responsibility, bank, public awareness, studies 96 Public Finance Quarterly /1 for centuries, especially as far as lending was concerned.

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With the increasing prevalence of market economy, these ethical rules have all. The banking sector focuses primarily on profits in the financial area, while corporate social responsibility takes a broad overview of the needs of society in general and how.

Corporate Social Responsibility in India

Building upon this premise, the objective of this study is to draw a conceptual framework for examining the direction of the linkage between corporate social responsibility and corporate financial performance and apply the framework on the banking sector in Bangladesh in order to examine the impact of CSR on CFP in this sector.

CSR initiatives developing in the s in the business industry had a ripple affect also on the banking sector were through sanctions and regulations concerning environmental issues on polluting companies banks were also forced indirectly to take action and exercise more attention in the selection of corporate clients in order to safeguard their reputation.

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Corporate social responsibility in the banking sector finance essay
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