Banks perform an intermediation function between depositors (households and organizations) and borrowers (households, organizations, local and state institutions). A sustainable banking sector is crucial for a healthy economy (Aras et al., 2018), so that the intermediation function has several CSR aspects: access to capital (financial inclusion for larger parts of the society), financing of nongovernmental organizations, ethical funds, risk expertise for customers, cost-efficient e-payments, and financial education for the population (Avrampou et al., 2019; Birindelli et al., 2015). Stakeholder theory is closely related to CSR and implies: (1) not harming the interests of stakeholders (i.e. investors, employees, unions, customers, suppliers, the state, and the communities); and (2) going “beyond compliance” on matters such as corporate transparency, lending criteria, responsible investments, human rights, corporate philanthropy, and the adoption of international standards for the banking sector (Campbell, 2007; Freeman, 1994). 

Starting from within the organization, stable and fair relationships between management and employees will lead to higher personnel satisfaction and loyalty (Birindelli et al., 2015). Employees are the medium for the diffusion of CSR practices within the company and in their relations with business partners and the public. While many employment rules are stipulated in the law, there are some elements that can be treated as “beyond compliance” and are thus part of CSR. These aspects refer to diversity, equal opportunities, flexible job design, health and safety, training, and career development (Esteban-Sanchez et al., 2017; Perrini et al., 2011). CSR-oriented organizational values have an explicit dimension (codes, rules, and procedures) and an implicit manifestation (the ethical climate and organizational profile). Rules, policies, and procedures are mandatory, while codes of conduct are principlesbased. Employee participation in CSR programs is voluntary and leads to the development of an ethical climate (Perrini et al., 2011). 

 CSR in the banking sector has two sides: the direct effect on the bank’s employees, communities, and customers; and the indirect effect, through the realization of projects and activities by entrepreneurs, organizations, and institutions that become bank customers (Scholtens, 2006). In line with the resource-based view, CSR can help banks differentiate themselves from competitors and improve the public’s perception of their activities (Gangi et al., 2019). The financial services sector relies on maintaining a good reputation based on trust and ongoing business opportunities (Jo et al., 2015). Consequently, brand recognition induces the differentiation of financial products and improves customer loyalty (Shen et al., 2016). Strategic CSR invokes a “win-win” scenario in 

which the bank takes a socially responsible stance to strengthen its market position and increase long-term profitability (Benabou and Tirole, 2010). 

 

Sumber: 

Bătae, O. M., Dragomir, V. D., & Feleagă, L. (2021). The relationship between environmental, social, and financial performance in the banking sector: A European study. Journal of Cleaner Production, 290, 125791. 

 Aras, G., Tezcan, N., Kutlu Furtuna, O., 2018. The value relevance of banking sector multidimensional corporate sustainability performance. Corp. Soc. Responsib. Environ. Manag. 25, 1062e1073. https://doi.org/10.1002/csr.1520. 

 Birindelli, G., Ferretti, P., Intonti, M., Iannuzzi, A.P., 2015. On the drivers of corporate social responsibility in banks: evidence from an ethical rating model. J. Manag. Govern. 19, 303e340. https://doi.org/10.1007/s10997-013-9262-9. 

 Avrampou, A., Skouloudis, A., Iliopoulos, G., Khan, N., 2019. Advancing the sustainable development goals: evidence from leading European banks. Sustain. Dev. 27, 743e757. https://doi.org/10.1002/sd.1938. 

 Esteban-Sanchez, P., de la Cuesta-Gonz_alez, M., Paredes-Gazquez, J.D., 2017. Corporate social performance and its relation with corporate financial performance: international evidence in the banking industry. J. Clean. Prod. 162, 1102e1110. https://doi.org/10.1016/j.jclepro.2017.06.127. 

 Gangi, F., Meles, A., D’Angelo, E., Daniele, L.M., 2019. Sustainable development and corporate governance in the financial system: are environmentally friendly banks less risky? Corp. Soc. Responsib. Environ. Manag. 26, 529e547. https:// doi.org/10.1002/csr.1699.