Corporate Social Responsibility in Banking

This assignment delves into the crucial topic of Corporate Social Responsibility (CSR) within the banking sector. It analyzes the influence of ownership structures and board compositions on CSR reporting practices in Turkish banks. The impact of CSR on customer perceptions and employee viewpoints is also explored, drawing upon research from diverse global contexts.

CSR
BANKING SECTOR

TABLE OF CONTENT
RESEARCH STATEMENT ...........................................................................................................3
INTRODUCTION...........................................................................................................................3
BACKGROUND AND RATIONALE FOR THE STUDY............................................................3
AIM AND OBJECTIVES OF THE STUDY..................................................................................4
LITERATURE REVIEW...............................................................................................................4
RESEARCH METHODOLOGY.....................................................................................................6
PROJECT OUTLINE ...................................................................................................................7
PROJECT TIME TABLE................................................................................................................8
REFRENCES ................................................................................................................................11

RESEARCH STATEMENT
“To understand the impact of CSR in raising trust among customers: A study on “Banks in
Nepal”.
INTRODUCTION
Corporate Social Responsibilities have gained much popularity in last few years. Many
sectors have undertaken CSR activities to work on ethical norms and also gain the customer trust
for the company. Many banks in different countries have developed the practise of CSR in order
to spotlight the ethics and consumer trust. The dissertation discusses about the aims and
objectives of CSR activities in banking sector. The problems associated in the bank and the
rationale of the study has been discussed.
BACKGROUND AND RATIONALE FOR THE STUDY
The term CSR refers to the development of policies in the organization and practice those
policies which aid the values and ethics of the society as well as of the company. Many sectors
have involved the practice of CSR activities for maintaining their work culture and aid the
societal values. These activities in turn proved beneficial for the environment, for the society as
well as for the firm. It is helpful in gaining consumer trust and loyalty. Also, these are
advantageous in attracting new customers and retaining old customers. These policies involves
activities like environmental preservation acts and campaigns, rallies for social causes and
awareness, sponsorship for non profitable organizations, charities and donations etc. The main
factors driving the corporate social responsibilities include national drivers and international
drivers.
The major issue faced by the cited bank is the challenge to maintain and engage the
consumers with the bank. In order to conquer the business and the market the firm seeks a big
challenge in engaging the consumers. The success and profitability of the industry not only
depends on fulfilling the capital demands but also by gaining customer trust and loyalty and
consumer retention. Increasing competencies in the banking sector has lead to a wider choice for
the public. Every bank seeks to attract many customers with their terms and policies. Thus, it has
became difficult for the “Banks in Nepal” to retain and engage the customers. Without customer
engagement the bank may possibly proceed towards winning the market but only for short
periods. For longer periods the bank needs to retain and engage consumers along with attracting
new customers. The demands and needs of the consumers should be satisfactorily met to gain

consumer engagement in the bank. This could be possible by maintaining values and ethics in the
society.
AIM AND OBJECTIVES OF THE STUDY
Aim:
To understand the impact of CSR in raising trust among customers: A study on “Banks in
Nepal”.
Objectives:
 To understand the concept CSR
 To determine the relationship between CSR and customers trust.
 To compare the CSR activities undertaken by banks in Nepal with European banks.
 To identify the impact of CSR in raising customers trust over services provided by
“Banks in Nepal”.
 To recommend strategies to raise trust among customers through CSR policies.
Research questions:
 What is the concept CSR?
 What is the relationship between CSR and customers trust?
 How are CSR activities undertaken by the banks in Nepal different from European
banks?
 What the impact of CSR in raising customers trust over services provided by “Banks in
Nepal”.
LITERATURE REVIEW
Different people have different views and perceptions for the CSR activities. According
to Pérez and Rodríguez Del Bosque (2015) the corporate social responsibilities are
conceptualized as the prime duty of entrepreneurs for pursuing the policies, developing them and
abide by the actions which are favorable with the values and ethics of the society. On the
contrary Kiliç, Kuzey and Uyar (2015), viewed CSR practices as the nature of conflict. He saw it
as a cause of problem between the managers and the shareholders interests. He stated that the
CSR are used as a tool for fulfilling political, social and carrier desires of the managers using the
expense of the shareholders.

Rani and Khan (2015), followed the shareholder theory and saw CSR treating the internal
and external shareholders of the organization in more socially responsible way. He stated that
the aim of CSR is to develop greater living standards for its shareholders maintaining the overall
profitability of the institution. According to Shen and et. al. (2016), CSR are the opportunities for
the integration of the social and environmental issues in the operations of the business and the
voluntary stakeholder interaction. The major components defining the CSR as given by Fatma
and Rahman (2016), are the economic concerns, Legal aspects, ethics and voluntary acts of
organization for the society. All these components are conceptualized in the Corporate Social
Performance model (CSP model). The model was accepted by Srikanth and Rao (2015),and they
developed hierarchy framework of need of CSR. The model depicts physiological needs, safety
needs, affiliation requirements, esteem demands, self actualization needs.
Recent researches and studies have shown that CSR activities plays an important role in
socializing the organization and customers relations. According to McWilliams (2014), key role
is played by the CSR practices in enhancing the relationship of the firm and customers. CSR aids
the customers to build trust on an organization and choose the best firm for them. Furthermore
Thien (2015), argued that CSR activities tends top seek consumer loyalty which benefits the
company as well as the public and the society. Moreover Pérez and Rodríguez Del Bosque
(2015),believes that the activities involved in CSR and its impact on the loyalty of the customers
have increased complexities than that determined by the previous studies. There exist a more
complex and deep relationship between CSR practice and its effect on the customer trust and
loyalty. The previous researches and theories majorly focused on direct impacts of corporate
social responsibilities on the public trust and loyalty. But according to Kiliç, Kuzey and Uyar
(2015), the CSR practices have indirect effects also on the society and customer loyalty.
Thien (2015), defines trust as an assessment of the consumers trustworthiness towards an
organization. The personal evaluation of the public loyalty can be determined by evaluating the
trust of the public in the services and polices of the company. An important effect of trust on
consumer loyalty has been widely reviewed in the literature. McWilliams (2014), states that
customers who have gained trust in the company are like to be more loyal and committed
towards the firm. According to Aksak Ferguson and Duman (2016), CSR activities helps to build
the customers trust which in turn increases customer loyalty.

The loyalty of consumers as reviewed by Rani and Khan (2015), is defined as the
frequency of the purchase of product or consumption of the services offered and prefer the
institution they can trust over the other competencies and continue the practice in the future as
well without switching over other firms. Fatma and Rahman (2016), views that the corporate
reputation is majorly affected by the CSR activities and the quality of services. CSR helps in
enhancing the public image of the organization which increases the reputation of the company in
the market. A good reputation thus seeks more loyalty from the customers. Srikanth and Rao
(2015), reviews that CSR practices and the company reputation are two hypothetical resources
that gives competitive advantages. On the other hand Atakan-Dumanand Ozdora-Aksak (2014),
argues that there exist a positive relationship between the two resources. According to Wu and
Shen (2013), in order to develop and maintain a positive correlation between reputation of
company and corporate social responsibilities it is very essential to meet stakeholder
expectations and provide a quality service to the consumers. The reputation of the company
tends to attract more and more customers and retain the old customers. On contrary Shen and et.
al. (2016), reviews that there is no correlation between consumer loyalty and CSR activities.
However, there have been many studies and still research is continuing to determine the
connection between consumer loyalty and CSR activities. Studies shows that corporate social
responsibilities have significant influences on customer satisfaction, customer loyalty and
consumer trust.
RESEARCH METHODOLOGY
Appropriate strategies are used by the author in order to determine the useful and appropriate
techniques in the “Banks in Nepal”. The methods and techniques so identified are as follows - Research philosophy - In the existing investigation the philosophy used by the researcher
is the philosophy of positivism. This has been used because in this the prime focus is on
the research objective and aim than on the topic subjectivity. This helps to conduct a
better research and draw appropriate conclusions (Flick, 2015). Research Approach – There are various approach which could be adopted for the
research. The approach of research used in this dissertation is deductive research
approach. Author has used this approach in order to apply appropriate and systematic
hypothesis testing to determine and test the appropriateness of the previous information
and researches which is used in the current study also. New theory is not been created by

it and analysis of different theories is done in this for getting appropriate results for the
present dissertation (Taylor, Bogdan and DeVault, 2015). Research Design – The designed used by the author in the current investigation is the
descriptive research design because it involves the survey and is one of the best designs. Research strategy – The strategies for research investigation could be qualitative or
quantitative. Qualitative strategy is undertaken to make better understanding of subjective
concepts of various tools of planning. A quantitative strategy is used to identify an
appropriate method for the promotion of the quoted organization. The author has used a
qualitative approach for conducting the investigation (Silverman, 2016). Data collection methods -Combined methods of primary and secondary data collection
are used by the researcher to gather relevant and important information. It aids in solving
the problems of “Banks in Nepal” in a better way. Sampling -Survey method is used for primary collection of data. In this the author
requires to choose suitable sample of managers of “Banks in Nepal” management team.
Random number method of sampling is undertaken in this. This gives equal opportunity
to choose among the sample.
 Data Analysis - Thematic analysis methods are adopted for the evaluation of the
gathered information. Thematic analysis is used by the author for assessing the
qualitative data in a systematic way (Mackey and Gass, 2015).
PROJECT OUTLINE
The dissertation follows an organized structure which includes different chapters outlining
different aspects. The investigation is done in an appropriate method. The complete structure of
the dissertation is as follows - Chapter 1 – Introduction : The dissertation outlines the corporate social responsibilities
and its organizational impacts. The research discusses about the impacts of CSR activities
in the banking sector with reference to the “Banks in Nepal”. The biggest challenge faced
by the bank is gaining customer loyalty and stay customers engaged. The problem can be
dealt by applying policies which maintains the ethics ans values of the society and
benefits society as well as the firm. It involves charities, donations, sponsorship etc. Also,
its impact on gaining consumer loyalty have been evolved in the research.

 Chapter 2 - Literature Review : The information related to the past studies and
researches have been included and discussed in the chapter to gain better understanding
of the effects of CSR in the banking industry. Many reviews shows that the CSR and
loyalty have a positive correlation while others contradicts that there is no connection
between loyalty and CSR. The different views of the authors and researchers revealing
the impact of CSR on “Banks in Nepal” have been shown in the chapter. These aids in
determining the past corporate social responsibilities and its influences and benefits in the
organization which will help to determine future strategies and plans. Chapter 3 – Research Methodology : Information related to the different theories have
been included in this chapter. These theories included data analysis, sampling, data
collection etc. Sampling including the number of question and the type of question to be
asked to collect information. Data analysis theory involve assessing the collected
information in order to determine the changes needed and the strong aspects to be carried
forward. These theories helps to gain more information regarding the research and get
appropriate information. Chapter 4 : Data Analysis : The collected information from the research have been
analyzed 9in this chapter. Assessing the collected information will help in determining
the suitable methodology in order to reach to a meaningful result and conclusion. The
appropriate findings including all the data are comprised in this chapter. The information
can be appropriately analyzed by determining a suitable method in order to seek the CSR
influence on the banking sector. .
 Chapter 5 : Conclusion and Recommendations : The conclusions made by the
information and analysis of the data is included in the chapter. The conclusion regarding
impacts and benefits of CSR are proposed in the chapter. Necessary recommendations
for the “Banks in Nepal” which it could undertake to increase its profitability and
conquering the market are suggested in the chapter. The “Banks in Nepal” can adopt the
different policies of CSR suggested in the chapter which will help it to improve the
customer engagement and enhance consumer loyalty. The activities, policies etc. are
identified and its influences on the organizations are analyzed.
PROJECT TIME TABLE

Activity 1th
Week
2nd
Week
3rd
Week
4th
Week
5th
Week
6th
Week
7th
Week
8th
Week
9th
Week
10th
Week
Find research
Topic
Literature
Review
Drafting of
methodology
Finish
Proposal
Design
question and
pilot research
Carry out &
Record
Research

Data Analysis
and
Making
Graphs
Discussion
and
Conclusion
Final Report
Editing &
Completion

REFRENCES
Books And Journals
Pérez, A. and Rodríguez Del Bosque, I., 2015. Customer responses to the CSR of banking
companies. Journal of Product & Brand Management. 24(5). pp.481-493.
Kiliç, M., Kuzey, C. and Uyar, A., 2015. The impact of ownership and board structure on
Corporate Social Responsibility (CSR) reporting in the Turkish banking industry.
Corporate Governance. 15(3). pp.357-374.
Thien, G.T.K., 2015. CSR for Clients’ Social/Environmental Impacts?. Corporate Social
Responsibility and Environmental Management. 22(2). pp.83-94.
McWilliams, A., 2014. Economics of Corporate Social Responsibility. Edward Elgar Publishing.
Aksak, E.O., Ferguson, M.A. and Duman, S.A., 2016. Corporate social responsibility and CSR
fit as predictors of corporate reputation: A global perspective. Public Relations Review.
42(1). pp.79-81.
Bravo, R.,and et. al., 2017. Brand Identity Management and Corporate Social Responsibility: an
analysis from employees’ perspective in the banking sector. Journal of Business
Economics and Management. 18(2). pp.241-257.
Rani, P. and Khan, M.S., 2015. Customer perception towards corporate social responsibility
(CSR) in banking sector. IJAR. 1(11). pp.265-268.
Fatma, M. and Rahman, Z., 2016. The CSR's influence on customer responses in Indian banking
sector. Journal of Retailing and Consumer Services. 29. pp.49-57.
Srikanth, R. and Rao, K.S., 2015. Corporate Social Responsibility Role of Public and Private
Sector Banks. Sumedha Journal of Management. 4(2). p.104.
Atakan-Duman, S. and Ozdora-Aksak, E., 2014. The role of corporate social responsibility in
online identity construction: An analysis of Turkey's banking sector. Public Relations
Review. 40(5). pp.862-864.
Wu, M.W. and Shen, C.H., 2013. Corporate social responsibility in the banking industry:
Motives and financial performance. Journal of Banking & Finance. 37(9). pp.3529-3547.
Shen, C.H., and et. al., 2016. To engage or not to engage in corporate social responsibility:
Empirical evidence from global banking sector. Economic Modelling. 55. pp.207-225.
Mackey, A. and Gass, S.M., 2015. Second language research: Methodology and design.
Routledge.

Taylor, S.J., Bogdan, R. and DeVault, M., 2015. Introduction to qualitative research methods: A
guidebook and resource. John Wiley & Sons.
Flick, U., 2015. Introducing research methodology: A beginner's guide to doing a research
project. Sage.
Silverman, D. ed., 2016. Qualitative research. Sage.