The Role of Banks in Corporate Social Responsibility

Abstract

The purpose of this paper is to explore the perception of respondents on corporate social responsibility (CSR) and banking practice of major banks in Hong Kong. This paper reviews literatures on management, quality management, banking industries, and CSR activities. Data was gathered via questionnaires from banking/ finance practitioners and academics in Hong Kong, the US and Scotland. The key CSR-related elements identified from quantitative analysis on collected questionnaires are: understanding complex financial services, conducting risk assessment, strengthening business ethics, implementing strategy for financial crisis, protecting rights of customers, and setting up channels for customers to address complaints. These elements can be classified into four main factors for a CSR framework for banks. The four factors are: internal management – implementing meaningful strategy and process and people management; external management – accountability for creditability and consideration of stakeholders. This study can help banking managers understand what should be done for the benefit of customers and the community for sustainability. However, allocating resources in banks for CSR activities has not been touched in this research. This opens a future research area for the academic community. Understanding the key elements of a CSR framework can help fulfill the principles of CSR and improve the level of customer satisfaction for increasing market share and profits ultimately. Researchers have not previously conducted an analysis from the viewpoint of banking and CSR related practitioners from the East and the West on CSR initiatives..