Socially Responsible Financial Products as a Contribution of Financial Institutions to Sustainable Development

Abstract

The article concerns the responsibility of financial institutions, primarily banks, for sustainable development and pro-ecological activities. The aim of the presented study is to identify the scope of activities of financial institutions in the field of sustainable development. What roles could banks have in contributing to sustainable development by offering socially responsible financial products? The authors conducted both quantitative research on a random group of Polish managers and a Delphi study on a group of several dozen experts, former members of the government, and bank presidents. The main results of the research indicate a 78% support among Polish managers for the activities of enterprises in accordance with the principles of sustainable development. More than 60% of the experts surveyed said that offering socially responsible financial products by banks is a growing trend in the economy. Moreover, two-thirds of the study’s participants think that such products are to be characterized by lower fees and margins than other standard financial products. Examples of the most frequently mentioned and expected products include those related to the development of green energy and eco-innovations or waste disposal. The results of the conducted research clearly indicate the need for financial institutions or banks to offer socially responsible financial products, which should become a part of their development strategies.

Board cultural diversity and bank social performance: The mediating role of corporate social responsibility strategy

“…Indeed, alignment with CSR principles may prevent investments in socially irresponsible activities. Accordingly, banks need to demonstrate their CSR orientation by focusing on social principles when developing lending policies to go beyond the profit maximization logic (Dec & Masiukiewicz, 2021). The vision of socially responsible banking (Scholtens, 2009) and banks' spillover effect (Gangi et al, 2019) are critical because of the role of banks in channeling financial resources to CSR‐engaged businesses (Gangi et al, 2020).…”

Contribution of sustainable investment to sustainable development within the framework of the SDGS: the role of the asset management industry

“…Gallego-Sosa et al (2021) examine the degree of commitment to the 2030 Agenda Sustainable Development Goals in the European banking sector. Dec and Masiukiewicz (2021) analyze how banks can contribute to SD by offering and advising responsible financial products. Méndez-Suárez et al (2020) explore the role of banks in promoting the issuance of social impact bonds (SIBs), a new form of social–financial hybrid product particularly suitable for addressing SDG 1, no poverty, SDG 10, reduced inequality and SDG 17 on partnerships.…”

“…Gallego-Sosa et al (2021) examine the degree of commitment to the 2030 Agenda Sustainable Development Goals in the European banking sector Dec and Masiukiewicz (2021). analyze how banks can contribute to SD by offering and advising responsible financial products.…”

Pro-Ecological Initiatives and Profitability of Manufacturing Enterprises

“…Their undertaking by manufacturing enterprises also allows them to meet public expectations and to create or warm up the image of an environmental actor. It is worth indicating that pro-ecological initiatives are also increasingly found in the financial sector (Dec and Masiukiewicz, 2021b). However, if these initiatives are to become more widely disseminated and bring tangible benefits, they must be of a long-term character, based on quality and eco-innovation, being an integral part of the overall corporate development strategy.…”