Communication of corporate social responsibility by Portuguese banks

TLDR

The study investigates whether Portuguese banks use their websites to disclose CSR information, identifies the types of information disclosed, compares this with annual reports, and contributes to the limited literature on financial institutions’ CSR disclosure. Using content analysis, the authors examined 2004 internet disclosures of Portuguese banks and compared them with 2003 annual reports, employing a novel proxy for public visibility. Banks with higher consumer visibility were found to disclose more CSR information to enhance corporate image, supporting legitimacy theory as an explanatory framework. The study’s sample, though small, includes all relevant Portuguese banks.

Abstract

Purpose The purpose of this paper is to ascertain whether Portuguese banks use their web sites as a medium to disclose social responsibility information and identify what types of this kind of information they disclose, and compare such disclosure with similar disclosure in annual reports. Design/methodology/approach Examines social responsibility information disclosure on the internet by Portuguese banks in 2004 and compares the internet and 2003 annual reports as disclosure media using content analysis. Findings Banks with a higher visibility among consumers seem to exhibit greater concern to improve the corporate image through social responsibility information disclosure. Results thus suggest that legitimacy theory may be an explanation of social responsibility disclosure by Portuguese banks. Research limitations/implications The sample is small, although it is constituted by all the relevant Portuguese banks. Originality/value Contributes to the scarce literature on social responsibility disclosure by financial institutions. A proxy for public visibility of banks which has not been previously used is proposed in this study.