Does corporate social responsibility give long term sustainability and stability? an empirical validation

Rajput, Namita; Oberoi, Shelly; Bharti, .

doi:10.5958/0973-9343.2015.00014.9

Cited by 3 publications

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“…In achieving this goal, they try to avoid excessive risk taking and better manage risks [61,62]. Rajput and Oberoi [63] have shown that establishing good relationships with the community increases local support and attracts customers, thereby reducing bank risk. Other authors revealed that, by implementing environmentally friendly actions, banks reduce their reputational risk and increase customer loyalty, which leads to higher funding stability [11,17].…”

Section: Sustainable Banking and Riskmentioning

confidence: 99%

Sustainable Banking, Market Power, and Efficiency: Effects on Banks’ Profitability and Risk

2021

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The financial crisis seriously damaged the reputation of the banking sector, as well as its profitability and risk of insolvency, which led many banks to adopt a sustainable approach aimed at balancing long-term goals with short-term performance pressures. This article analyses how sustainable banking practices affect the profitability and the insolvency risk of banks. Moreover, we examine how sustainable strategies determine the effects of market power and efficiency on bank profitability. We used a two-step System-GMM to analyze an unbalanced panel of 1236 banks from 48 countries over the period 2015–2019. We found that sustainable banking practices increased profitability, and market power was an important determinant of profitability among conventional banks, but not among sustainable banks. Higher levels of cost scale efficiency led to greater profitability for both sustainable and conventional banks. However, there was no significant relationship between sustainable banking and insolvency risk. These results indicate that the traditional determinants of bank profitability are not relevant in explaining the superior profits of sustainable banks, which suggests the emergence of a new paradigm related to sustainability among the drivers of bank profitability.

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Section: Sustainable Banking and Riskmentioning

confidence: 99%

Sustainable Banking, Market Power, and Efficiency: Effects on Banks’ Profitability and Risk

2021

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“…In addition, strong stakeholder relationships provide companies with access to a variety of resources and help them use resources efficiently (Hanbrick, 1983). In a more recent paper, Rajput, Oberoi, and Bharti, (2015) conclude that firms that contribute to society receive local support, enjoy greater bargaining power, have more new customers, and so forth, which makes the company more solid.…”

Section: Theoretical Foundationsmentioning

confidence: 99%

CSR and banking soundness: A causal perspective

Abdallah

Saïdane

Slama

2020

Business Ethics: A Eur Rev

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This is the first study to examine the relationship between sustainability and soundness in banking as part of an integrated reporting approach. We consider 12 major European banks over the period 2006–2016. To test the relationship, two indexes were constructed, the sustainable performance index, which attempts to measure sustainability, and the banking soundness index, which measures bank soundness. The results show a bidirectional causality between sustainability and banking soundness. More specifically, soundness encourages banks to engage in sustainable development activities, while the implementation of a sustainable development approach has a negative effect on banking soundness. Our research contributes to the literature on this topic in two ways. First, we propose a new method for measuring banking soundness based on a Bayesian approach. This approach allows us to study a large number of criteria and allows us to determine proactively the importance and the contribution of different determinants in achieving soundness. In addition, to the best of our knowledge, this is the first study that attempts to study the relationship between bank soundness and sustainability.

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Ubuntu or Compliance? Knowledge, Attitudes, and Practices of Owners of Small- Medium-Sized Enterprises in Johannesburg, South Africa Regarding Corporate Social Responsibility

Maluleka,

Ross

2024

Journal of African Business

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Does corporate social responsibility give long term sustainability and stability? an empirical validation

Cited by 3 publications

References 0 publications

Sustainable Banking, Market Power, and Efficiency: Effects on Banks’ Profitability and Risk

Sustainable Banking, Market Power, and Efficiency: Effects on Banks’ Profitability and Risk

CSR and banking soundness: A causal perspective

Ubuntu or Compliance? Knowledge, Attitudes, and Practices of Owners of Small- Medium-Sized Enterprises in Johannesburg, South Africa Regarding Corporate Social Responsibility

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