CSR IN BANKS

CSR in Banking Sector

Corporate Social Responsibility in Banking Sector

Introduction

Corporate social responsibility (CSR) can be defined as the active and voluntary contribution to improving social, economic and environmental by companies, usually with the aim of improving its competitive position and valuation and its value. Corporate social responsibility goes beyond compliance with laws and regulations, assuming their respect and strict compliance. In this sense, labour laws and regulations related to the environment are the starting point to environmental responsibility. Compliance with this basic policy does not match Social Responsibility, but with the obligations that any company must meet simply because of his activities. It would be difficult to understand allegation by a company's CSR activities if it has or does not comply with the legislation referred to their activities. Under this concept, of administration and management are included a set of practices, strategies and business management systems that seek a new balance between economic, social and environmental. Its exponents today are companies' social economy, by definition Socially Responsible Companies. The aim and objective of this essay is to talk about the concept of corporate social responsibility in the banking sector.

Role of Banks in Corporate Social Responsibility

Commercial banks' activity directly affects the society in which they operate, and future success in business gets closely linked to key public values. The potential of the growth in the banking business in an increasingly competitive environment gets determined by intangible factors. Confidence is an essential prerequisite for a functioning market for banking services, and the level of profits leads to more, and more technology does not provide services, but the correct positioning of banks in a social environment based on social responsibility and reputation.

Social purpose of commercial banks shows that they work not only for their own profit, but for the sake of profits of its customers. If a bank pursues a policy that does not meet the social needs and interests, this leads to the failure of banks, their withdrawal from the market. The level of social responsibility should be manifested in the bank's activities. In the critical period, banks work for their own profit at the expense of common interests, which ultimately leads to a violation of legal and economic norms and, consequently, leads the bank to a position where they no more fulfil the social obligations. The faster the activities of banks approve the concept of socially responsible behaviour, the more the impact of their constructive role would be visible in terms of social development as well as the development and growth of the business. Focusing on sustainable development and the need to improve corporate governance requires not only on fulfilling customers' needs and improve financial performance, but also taking into account long-term interests of society. Thus, there is a need to balance three components: the financial performance of the bank, customers' needs and interests of society (Samuel and Celine 2010, 39).

If we closely analyze the business and operations of the banking sector then t would be revealed to us that accepting ...