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Waheed, Abdul; Zhang, Qingyu; Zafar, Abaid Ullah; Zameer, Hashim; Ashfaq, Muhammad; Nusrat, Anam
2021 International Journal of Bank Marketing
doi: 10.1108/ijbm-04-2020-0215
This study investigates the impact of corporate social responsibility (CSR) on organizational performance, especially competitive performance (CP) along with moderating role of the organizational culture (OC) from the banking sector of China. Drawing on the stakeholder theory, the first goal is to examine the relationships between CSR and organizational CP. Second, the purpose is to evaluate the moderation of OC between the relationship of CSR and CP, respectively.Design/methodology/approachSEM using SmartPLS was majorly engaged to ascertain the relationship and to inquire the assumed hypotheses. The convenience sampling was engaged to collect the data from the Chinese banking market with the help of students, colleagues and personal visits.FindingsThe findings exhibited that CSR both external and internal CSR has significant correlations on organizational CP within banking sector of China. Second, the findings revealed a positive moderation influence of OC between the relationships of CSR and organizational CP. The comprehensive analysis of each factor of CSR on organizational CP was autonomously inspected to understand the insights which ensure that how the incorporation of CSR and OC activities may improve organizational CP.Research limitations/implicationsThis study faces numerous limitations related to sample and geographic locations that assure new work possibilities for researchers across the world.Practical implicationsThis study equips insightful information for management on how organizations can obtain CP by consolidating CSR and OC activities as their more productive strategic tools. This article endows with potential theoretical and managerial implications with empirical addition to concerned literature of OC, CSR and organizational CP.Social implicationsUnderstanding OC and CSR activities can provide interesting and helpful insights for the personnel to perform well within the banking institutes.Originality/valueThe topic of CSR and culture has been known as the evolving concept that is getting strong concern for the researchers. The additional work particularly empirical is yet required to explore the insights on CSR and OC themes worldwide, especially in developing nations.
Mogaji, Emmanuel; Hinson, Robert Ebo; Nwoba, Arinze Christian; Nguyen, Nguyen Phong
2021 International Journal of Bank Marketing
doi: 10.1108/ijbm-04-2020-0195
Drawing on stakeholder theory, the purpose of this paper examines how Nigerian banks employ their corporate social responsibility (CSR) initiatives to empower women to participate in economic and commercial activities.Design/methodology/approachThe methodology of this paper is regarding a thematic analysis of Nigerian banks' annual CSR and sustainability reports.FindingsA theoretical framework was developed which illustrates the investment foundation (Sustainable Development Goals, Women's Empowerment Principles (WEPs) and Nigerian Sustainable Banking Principles) that supports the different levels of engagement (healthcare, financial, social and career empowerment) aimed at different groups of women (women at large, women in business and women in career) in the society.Research limitations/implicationsThe study findings are confined to the banks in Nigeria, focussing on how they empower women to participate in economic and commercial activities.Practical implicationsIt is paramount that Nigerian banks consistently report their CSR initiatives. When designing these initiatives, it is equally important to incorporate WEPs, as they are specifically focussed on women.Social implicationsDue to their low-level institutional and financial development, it is important that Nigerian banks design their CSR initiatives to improve women empowerment. While initiatives should be targeted at women's well-being and physical health, it is important to steer women towards financial and social independence through loans, grants and mentorship.Originality/valueTo the best of the authors' knowledge, no other research study has examined how banks in an emerging market use their CSR activities to empower women to participate in financial activities.
Lui, Tze Kiat; Zainuldin, Mohd Haniff; Wahidudin, Ahmad Nazri; Foo, Chuan Chew
2021 International Journal of Bank Marketing
doi: 10.1108/ijbm-04-2020-0192
The purpose of this study aims to empirically examine the corporate social responsibility disclosure (CSRD) levels of conventional and Islamic banks in Malaysia. Additionally, as Malaysian banks have different shareholding patterns that are more highly concentrated than those in the developed economies, this study also investigates the impact of ownership concentration on CSRD in both types of banks.Design/methodology/approachThis study employs hand-collected corporate social responsibility (CSR) data from the annual and sustainability reports of 21 conventional banks and 16 Islamic banks in Malaysia during 2010–2017. The data are then run using the pooled ordinary least square (OLS) with robust standard errors and robust regressions models together with all possible factors determining CSRD in the banking sector.FindingsThis study discovers that Islamic banks disclose a higher level of total CSRD than their conventional counterparts after controlling a number of important determinants of CSRD. These results remain consistent for four different dimensions of CSRD, i.e. employees, communities, environment and products and services. In relation to the impact of ownership concentration on CSRD level, the results show that high ownership concentration reduces the level of CSRD by Malaysian banks. However, in an additional interaction test, the result exhibits a complementary relationship between Islamic banks and ownership concentration in influencing CSRD level.Research limitations/implicationsThis study finds that the principle of Islamic accountability has been internalised by Islamic banks, and shaped them to put equal emphasis on the disclosure of CSR practices and the financial information disclosure.Practical implicationsIt is recommended for all banks to ensure the integration of a more comprehensive ethical system, such as theological ethical values in every aspect of their business activities. The findings from this study also highlight the necessity for the central bank to increase their monitoring role, especially towards banks with a more concentrated ownership structure by limiting the size of shareholdings by any particular types of owners.Originality/valueOnly a few studies have compared CSR practices between these two types of banks, and most of them are descriptive and qualitative in nature. This study is the first that uses a robust model with a high R-squared value, which control for all possible factors determining CSRD in the banking sector.
Liyanaarachchi, Gajendra; Deshpande, Sameer; Weaven, Scott
2021 International Journal of Bank Marketing
doi: 10.1108/ijbm-06-2020-0313
This conceptual paper explores gaps in bank privacy protection practices and advocates for banks to integrate market-oriented (MO) approaches in their corporate digital responsibility (CDR) initiatives to minimize consumer data vulnerability.Design/methodology/approachTo apply MO in CDR, this study recommends adoption of a behavior change framework comprising of the co-creation, build and engage (CBE) model and proposes the creation of consumer segments based on generational cohort and tailoring strategies through motivation, opportunity and ability (MOA) model to manage vulnerability.FindingsThe study specifies that managing consumer data vulnerability requires a unique strategy different from conventional service delivery. A holistic approach is recommended by integrating corporate digital responsibility as a pivotal element of organizational strategy and by positioning vulnerable customers as a critical stakeholder.Originality/valueThe paper contributes to the research in corporate social responsibility (CSR), privacy and data vulnerability in the banking sector in two prominent ways: first, the study demonstrates the importance of MO as a premise to develop a novel version of CDR called market-oriented digital responsibility (MODR). The study considers MODR as a strategy to reposition vulnerable consumers as a key stakeholder, and, second, the study proposes an innovative set of consumer segments based on data vulnerability and introduces a data vulnerability growth model (DVGM) connecting vulnerability with age.
Bugandwa, Toussaint Ciza; Kanyurhi, Eddy Balemba; Bugandwa Mungu Akonkwa, Deogratias; Haguma Mushigo, Benjamin
2021 International Journal of Bank Marketing
doi: 10.1108/ijbm-04-2020-0209
This paper has two purposes. First is to operationalise the concepts of corporate social responsibility (CSR) and trust in the context of a developing country, the Democratic Republic of Congo (DRC). Second purpose is to test in a disaggregated perspective the impact of each CSR dimension on trust.Design/methodology/approachData were collected from 264 customers of six banks and processed with exploratory, confirmatory factor analysis and structural equations using LISREL 9.1.FindingsCSR is found to have five dimensions: legal responsibility, social needs responsibility, product responsibility, environmental responsibility and employee responsibility; trust is found to be a three-dimensional construct: integrity, compassion and partnership. Each CSR dimension has a positive impact on customers' perception of trustworthiness.Research limitations/implicationsReliability of trust is not high enough, suggesting the need to deepen research in order to find a more adapted CSR scale for banks. The smallness of sample size might have influenced the robustness of our psychometric results. CSR and trust relationships might be analysed in a more enriched framework including service quality, reputation and banks' employee performance as moderating variables. This paper has measured the two concepts from the customers' perspective only. However, both CSR and trust are best understood in a stakeholder perspective. So, it might be insightful to extend future research in a stakeholder orientation perspective.Practical implicationsBanks from developing countries are also concerned with CSR and should invest in it. Clearly, each dimension of CSR should receive enough importance if Congolese banks are to recover their customers' trust. The findings of the study also suggest that banks' customers are aware of the necessity for banks to comply with the country's legislation. Non-compliance can have severe influence on customers' trustworthiness to banks.Social implicationsFinancial institutions are generally evaluated through financial indicators. The findings suggest that banks customers and other stakeholders begin a shift towards requiring their banks to invest in social and environmental activities in order to improve their local milieu. These aspects are still very neglected, or adopted only as marketing strategies to improve image, without a true willingness to be socially responsive.Originality/valueThe two concepts are measured in a context where they did not receive enough importance (developing country), hence providing new knowledge in the field. Further, a disaggregated approach allowed understanding the way each CSR dimension impacts trust, which had not been the case in previous research.
Herold, David M.; Dietrich, Timo; Breitbarth, Tim
2021 International Journal of Bank Marketing
doi: 10.1108/ijbm-04-2020-0207
This study aims to identify and deconstruct bullshit in banks' corporate social responsibility (CSR) communication to advance the management rhetoric research space, which has been characterised by an indifference to truth and meaning.Design/methodology/approachWe provide a typology of bullshit phenomena overview in the banking sector and follow the McCarthy et al.'s (2020) C.R.A.P. framework from to showcase how bullshit can be comprehended, recognised, acted against and prevented.FindingsThis paper puts a spotlight on written and spoken language to detect bullshit in banks' CSR statements. It provides actionable insights into how stakeholders can act against and prevent bullshit statements from occurring in the future.Research limitations/implicationsFuture research is warranted to assess the use of still imagery, events and video materials in corporate communications and non-financial reporting. Further rigorous assessment of actual CSR initiatives must be undertaken to assess claimed contributions.Practical implicationsMonitoring mechanisms and independent assurance statements prepared by authorised third parties may strengthen the motivation and ethicality of CSR activities.Originality/valueThis viewpoint is the first to follow the C.R.A.P framework and critically assess indifferences towards truth in banks' CSR communications.
van Hierden, Yannick Thomas; Dietrich, Timo; Rundle-Thiele, Sharyn
2021 International Journal of Bank Marketing
doi: 10.1108/ijbm-04-2020-0223
This study aims to demonstrate how banks can align their CSR investment to community needs and citizen preferences. A grounded theory inductive approach is applied to deliver a community-centred process that banks can apply to inform CSR investment decisions.Design/methodology/approachThis study employed a sequential mixed-method research design to identify areas of need from the perspective of community leaders and members through depth interviews. Following thematic analysis, citizen preferences for eight priority areas were elicited using best-worst scaling (BWS).FindingsClear investment preferences emerged with citizens preferring six community investment causes, namely, (1) infrastructure, (2) crisis and prevention support, (3) community groups, (4) youth facilities and activities, (5) initiatives that support the local environment, and (6) physical activity promotion. The forming of community advisory committees emerged as one approach that banks could apply to ensure long-term citizen-centred CSR investment decisions.Research limitations/implicationsThis study is limited to one community and one community bank and a small convenience, cross-sectional data sample.Social implicationsCommunity-oriented financial institutions should centre investment decisions on community need and citizen preferences ensuring investments made deliver the greatest societal benefit and community support for the banks is garnered.Originality/valueThis paper provides important contributions to improve the effectiveness of CSR initiatives, providing an inductive, methodological approach that financial institutions can follow to better align their CSR investment to community needs and preferences.
Shakil, Mohammad Hassan; Tasnia, Mashiyat; Mostafiz, Md Imtiaz
2021 International Journal of Bank Marketing
doi: 10.1108/ijbm-04-2020-0210
Gender diversity in corporate boards is broadly studied in existing corporate governance literature. However, the role of board gender diversity on environmental, social and governance (ESG) performance of the banks is still unaccounted for. Drawing on resource dependence and legitimacy theory, this study addresses this pressing research issue. Moreover, investigation of ESG controversies as a moderator paves the existing corporate governance research to the new avenues.Design/methodology/approachData were sourced from Refinitiv database on 37 US banks from the period of 2013 to 2017. This study employs static and dynamic panel regression models that include random effects, fixed effects and dynamic generalised method of moments (GMMs) to test the hypotheses. Furthermore, system GMM is used to reduce the issue of endogeneity, measurement error, omitted variables bias and bank-specific heterogeneity.FindingsWe identify a significant positive relationship between board gender diversity and the ESG performance of US banks. However, the result propounds non-significant moderating effect of ESG controversies on the board gender diversity–ESG performance nexus.Originality/valueLiterature on board gender diversity and ESG separately and predominantly explains firm/bank's financial performance. This study is one of the pioneering attempts to explain the role of board gender diversity on ESG performance. Although incremental, however, this study also contributes to the literature on ESG in the US context.
Jackson, Michaela; Parker, Lukas; Brennan, Linda; Robinson, Jenny
2021 International Journal of Bank Marketing
doi: 10.1108/ijbm-04-2020-0199
After comprehensive review of discourse surrounding school-banking programmes and marketing to children, the authors develop evidence-based guidelines for such programmes. Guidance for organisations is provided to ensure they understand these products' impact on children and other vulnerable consumers.Design/methodology/approachA comprehensive, systematised review of literature related to school-banking programmes was undertaken during 2019, 22 Boolean searches were collated, appraised using a five-step quality appraisal framework and analysed against selection criteria. To accommodate literature across disciplines, quality appraisal combined two existing hierarchies of evidence and peer-review status.FindingsSearches returned over 375,000 articles; 149 were relevant and met quality thresholds. Evidence supports the role of financial education in producing positive financial outcomes. However, education should involve communities and families to enhance consumer socialisation and limit negative consequences. From this, guidelines are presented accounting for students' and parents' ability to understand marketing messages and the impact of in-school marketing on students – including on longer-term perceptions, attitudes and behaviours.Practical implicationsGuidelines are to assist financial institutions, policymakers and schools balance the benefits of financial literacy and education with potentially negative consequences of school-banking programmes. Classifying programmes as marketing rather than CSR also benefits organisations contributing corporate resources and voluntarily engaging practices underpinned by commitment to community well-being.Originality/valueAvoiding moral panic, the authors instead outline evidence-based guidelines on school-banking programmes. The quality appraisal process used in this review offers a new approach to synthesising inter-disciplinary evidence.
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