THE INFLUENCE OF CORPORATE SOCIAL RESPONSIBILITY DISCLOSURE ON BANK PROFITABILITY
THE INFLUENCE OF CORPORATE SOCIAL RESPONSIBILITY DISCLOSURE ON BANK PROFITABILITY

Summary/Abstract: Nowadays, the society expects economic performance from companies, but also a social commitment. Our observations will offer to the banks a perspective on the degree of their CSR Disclosure and will help the central bank to develop a corporate sustainability framework and guidelines for the improvement of the transparency and the reduction of the informational asymmetry. The objective of our work is to explore the amplitude of the information on CSR from the annual reports and the reports of the Administrative Councils of the banks, and also to examine the impact of the CSR Disclosure on the bank performance. The study uses an econometric model to analyse the effect of the CSR Disclosure on the profitability of the Romanian banks. Related to the banking field of activity, a specific feature in the behaviour of the customer was observed. The customers are more involved, analysing attentively the information and also have the tendency to establish a long-term relation with the financial institution.

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