A State of the Art of Corporate Social Responsibility in Financial Institutions

Abstract

Corporate social responsibility originates from the company’s behavioral problems. Corporate governance can be considered an environment of trust, ethics and moral values and in recent years has gained enormous importance. In addition, other factors that have been responsible for the new corporate governance paradigm are a stricter respect for the environment and the demand for greater corporate responsibility towards its shareholders and customers. Ecosystem load capacity is described with resource consumption input–output models. In line with this, the company should not use more than one resource that can be regenerated. Considering an organization as part of a broader social and economic system implies that these effects must be taken into account, not only for the measurement of the costs and value created in the present, but also in a future perspective for the company. In this context banks, which carry out the fundamental role as financial intermediaries, are linked with different stakeholder interests, both in economic and social field. This chapter analyzes the main novelties which has influenced corporate governance of them by reviewing its main phases. The chapter secondly addresses the specific features of board of directors by analyzing a sample of 25 banks defined as Global Systematically Important Institutions in 2018 following the EBA guidelines.