Dissertation: Recent Developments in CSR Activities by UK Banks

This dissertation investigates the recent developments in Corporate Social Responsibility (CSR) activities undertaken by the banking industry within the United Kingdom. It explores the background of CSR, its impact on banks, and the perceptions surrounding it. The research encompasses a literature review, outlining the meaning and concept of CSR, its impacts, perceptions, and barriers faced by banks. The methodology chapter details the research philosophy, approach, design, and strategy, including data collection methods through surveys and interviews. The results chapter presents findings from the survey and interview data, including demographic factors, and the impact of CSR on banks, as well as the barriers to CSR implementation. The discussion chapter analyzes the impact of CSR on banks, public perceptions of CSR, and recent developments within the UK banking sector. The dissertation concludes with a summary of findings, recommendations for future research, and practical implications, providing a comprehensive understanding of CSR within the UK banking landscape. The research also highlights the limitations of the study, such as time and access constraints. The study employs both quantitative and qualitative data collection methods, including questionnaires and interviews, to gather comprehensive insights into the subject matter.

Running head: DISSERTATION 0
RECENT DEVELOPMENTS IN CSR ACTIVITIES BY THE BANKING INDUSTRY
PARTICIPNATS IN THE UNITED KINGDOM
STUDENT DETAILS:

DISSERTATION 1
Abstract
Many countries faced joblessness and economic fall back because of drop in real economy.
After the disaster, United Kingdom was concerned to restore the faith in banks or other
financial institutions and how they can give contribution in financial progress and social
development. This research proposes a theoretical background link of corporate social
responsibility activities through banks or financial institutions. In recent, many developments
have been taken in corporate social responsibility activities by the banks in United Kingdom.
This research report studied the corporate social responsibility, an attitude placing moral
standards in the limelight. The corporate social responsibility differentiates several layers of
the responsibilities.
This research comprises various chapters to make the research in systematic manner. The
initial chapter provides background of research, aims of research and objectives. In the next
chapter, it describes the recent development in corporate social responsibility activities by
banks in United Kingdom. It also describes influence of corporate social responsibility on
banks. In the third chapter, different attitudes, methodologies, and approaches are discussed
to complete the research aims and purpose of research systematically. In the fourth chapter,
data is examined by a researcher with the help of interview and survey by a questionnaire. In
the fourth chapter, discoveries are discussed to develop a proper understanding of the result
of research. Lastly, full discoveries are summarized and suggested to conduct further
research.

DISSERTATION 2
Contents
1 First chapter: Introduction..................................................................................................3
1.1 Research Questions.....................................................................................................3
1.2 Research objectives.....................................................................................................3
1.3 Research rationale.......................................................................................................4
1.4 Dissertation structure...................................................................................................4
Introduction:.......................................................................................................................4
Literature Review:..............................................................................................................4
Research Methodology:.....................................................................................................5
Data Analysis and Findings:..............................................................................................5
Conclusion and Recommendation:....................................................................................5
2 Literature Review...............................................................................................................5
2.1 Introduction.................................................................................................................5
2.2 Meaning and concept of corporate social responsibility.............................................6
2.3 Impacts of corporate social responsibility on the bank-..............................................7
2.4 The perceptions towards the corporate social responsibility-.....................................8
2.5 The barriers for the banks to undertake corporate social responsibility-....................9
3 Research Methodology.....................................................................................................11
3.1 Introduction...............................................................................................................11
3.2 Research Philosophy.................................................................................................12
3.3 Research Approach....................................................................................................12
3.4 Research Design........................................................................................................12
3.5 Research Strategy......................................................................................................13
3.6 Data Collection Method............................................................................................13
3.6.1 Sampling Method...............................................................................................13
3.6.2 Data Analysis Method........................................................................................14
3.6.3 Ethical Consideration.........................................................................................14
3.6.4 Conclusion..........................................................................................................14
4 Chapter 4: Result..............................................................................................................15
4.1 Survey Questionnaire recent developments in CSR activities through banking sector
in United Kingdom...............................................................................................................15
4.1.1 Demographic Factor...........................................................................................15
Table 3: Impact of corporate social responsibility activities on banks....................................16
Chart 3: Impact of corporate social responsibility activities on banks....................................17
4.2 Table 5: The barriers for the banks to undertake corporate social responsibility-....18

DISSERTATION 3
4.3 Chart 5: The barriers for the banks to undertake corporate social responsibility-....19
4.4 Interview Questionnaire related to basic human rights of refugee children..............20
5 Chapter 5: Discussion......................................................................................................23
5.1 Impacts of corporate social responsibility on banks-................................................23
5.2 The perception about the corporate social responsibility..........................................23
5.3 Recent developments in corporate social responsibility activities through the
banking sector in United Kingdom......................................................................................24
6 Chapter 6: Conclusion and Recommendation..................................................................25
6.1 Conclusion.................................................................................................................25
6.1.1 Impacts of the corporate social responsibility on the banks in United Kingdom. 25
6.1.2 The perceptions about corporate social responsibility....................................................25
6.1.3 The barriers for the banks to undertake the corporate social responsibility...............25
6.2 Recommendation.......................................................................................................26
References................................................................................................................................27
Appendix..................................................................................................................................28
Survey through Questionnaire..................................................................................................28
Demographical based question............................................................................................28
Impacts of corporate social responsibility on the banks that affects the future growth and
progress of the banks or the banking sector in the United Kingdom.......................................28
The perceptions about the corporate social responsibility-..................................................29
Different types of barriers for the bank to undertaking the corporate social responsibility 29
Interview Questionnaire...........................................................................................................30

DISSERTATION 4
First chapter: Introduction
In present time, the model of corporate social responsibility is spreading very quickly
everywhere and in all sectors involving banking sector. The corporate social responsibility
differs from business to business. The corporate social responsibility may make many
benefits for banking sector. The essential thing is that how to increase reputation of bank and
enhance the commercial progress. The reason is that image of banks is necessary to keep their
old clients and attract more clients. It improves the economic status of bank. In this way, the
banks can achieve the advantages with the help of good risk management, integrity of staff
and good reputation by paying the attention to the social responsibilities. All banks know that
profits are depend upon their customers. They are supposed to become the social bank which
complete the social responsibilities.
In this way, corporate social responsibility in the banks has made high demand. The banks
may sanction the educational program, social program, ethnic program and the environmental
program. They may also take the step for health incentives. The banks apply the sponsorship
steps for the helpless groups or charitable non-profit corporations. This research report states
the problem of CSR barrier, bank’s corporate social responsibility models and various
positive elements of banks.
Research Questions
For achieving research objects, following research objectives will attained:
 What is meaning and concept of CSR?
 What are impacts of corporate social responsibility on the banks?
 What are perceptions towards the CSR?
 What are the barriers for the banks to undertake CSR?
 What are recent developments in CSR in United Kingdom?
Research objectives
It is very essential to evaluate real objects of the study because research objects help to
complete the research study in proper manner (Aydogdu and Asikgil, 2011). The main object
of this research is to evaluate the recent developments in corporate social responsibility in
United Kingdom. Some objects of research are discussed as follows-
 To understand the concept of CSR.
 To determine impacts of corporate social responsibility on banks.
 To examine perceptions towards the corporate social responsibility.

DISSERTATION 5
 For better understanding of barriers for banks to undertake corporate social
responsibility.
 To evaluate the current developments in corporate social responsibility activities
by banks in United Kingdom (Wilson, 2014).
Research rationale
The research is advantageous for the researchers to have good understanding about meaning
and concept of corporate social responsibility. It may good for all banks to understand the
corporate social responsibility and its impacts (Aulia, Djakman and Lusia, 2018). The
research studyis also important for the banking sector to know the recent developments in the
corporate social responsibility in United Kingdom. It may be also effective for banking
sectors to understand the different barriers for the banks to undertake corporate social
responsibility (Babbie, 2016).
Limitations of research
At the time of conducting research, the researcher can face many difficulties, problems, or
issues related to the research to complete the research study. These challenges, issues, or
problems can adversely affect the investigation study. These challenges, issues, or the
problems may affect the outcomes of the research. As per this, time, money and facts access
are some significant limitations that can bound the research study of researcher to produce
valid and consistent conclusions. According to this research process, less time to make
research can adversely affect the research study in terms of gathering a sufficient amount of
information from the various resources related to the problem of research. At the similar time,
money restraint can influence the researcher to conduct a proper research in the field. The
researcher cannot be able to access the inclusive range of data resources from various
geographical places to gather research specific figures and information. It can also limit the
consistency and genuineness of the research among the major shareholders (Lee and Riffe,
2017).
Dissertation structure
The structure of dissertation is utilised to complete the research study in a procedural and
practical manner (Cohen, Manion and Morrison, 2013). The dissertation structure is as
follows-

DISSERTATION 6
Introduction:
It is a first chapter of this research study, which includes the topic of research, background
data, research goal and purposes, problems related to research, and importance of research to
make a healthy base and information base related to the problems and challenges in research.
In addition of this, this introductory chapter also specifies the understanding in detail about
the limitations of research that the researcher faces in completing the research study.
Generally, the data of this chapter is proper for the researcher to decide the way of study and
discover the problem of the research meaningfully (De Klerk, de Villiers and Van Staden,
2015).
Literature Review:
The next chapter of the research study is the literature review. This chapter of literature
review defines the difficulties of research by an implementation of various concepts, models,
and philosophies. With the help of this literature review, a researcher may be able to
comprise the evaluation of existing material about the difficulties of research and measure the
level of difficulties. It has been exposed until date. A wide range of journals and articles are
studied for the literature review as it assistances to make theoretical knowledge in respect of
subject of research. It is also helpful for a researcher to consider the knowledge gap and
improve the base for applying the primary research methods (Mirvis, 2012).
Research Methodology:
In research methodology chapter, the various methods and attitudes are discussed to conduct
the research study in a moral manner and procedural way. In addition of this, many
methodologies, policies, values, data collection method, methodology of data analysis,
methods related to sampling and research design is defined and acceptable to ensure the
trustworthiness and rationality of outcomes and consequences of research. Along with these
advantages, the research techniques are reasonable as per the research purpose and research
topic as it is important to reach the effective outcomes and conclusions (Grey, 2013).
Data Analysis and Findings:
In the chapter of data analysis and findings, the researcher examines the data in respect of
research concern. This research study enables the substantial way for a researcher in order to
separating the combined information and estimates them against each object. In this case, it
helps the researcher to establish and evaluate the data rationally by using suitable data
analysis technique. By using this, the researcher is enabled to establish the information in a
procedural way to create a valid result (Qiu, Shaukat and Tharyan, 2016).

DISSERTATION 7
Conclusion and Recommendation:
The last chapter of research is conclusion and recommendation. In this last chapter of
research, the researcher is allowed to review the complete research study as per the
discoveries of research. It also makes the connection among research objects and discoveries
to achieve at the effective and consistent result. It also simplifies the recommendation
connected with the recent development in the corporate social responsibility in United
Kingdom. In the last, this chapter is beneficial to describe the practical implication for
directing the future researcher for conducting the research.
Literature Review
Introduction
The introduction chapter is most important chapter of this research study. With the help of
this, the researcher may establish theoretical knowledge regarding issue of research in more
important ways. The introduction also helps the researcher to make study of various
secondary resources. These secondary resources include books and journals related to the
recent development in corporate social responsibility activity in banking sector. With the help
of introductory chapter, the researcher may recognise the elements, which influence the CSR
activities in banking sector. Further, the introduction chapter also makes able the researcher
to assess the impacts of the development in CSR activities in banking sector (Karim, et al
2015).
Meaning and concept of corporate social responsibility
Since 1950s, many experts, government system, foreign institutions and various firms have
stated the problem of corporate social responsibility. The term of corporate social
responsibility is difficult and not certain term. The word corporate social responsibility is not
appeared initially in book namely Social Responsibilities of the businessmen. According to
Bowen (1953), the corporate social responsibility is the duty or obligation of the businessman
to follow those policies, to create those policies or to monitor those lines of actions which are
needed in respect of objects and value of communities or groups or the societies (Visser and
Tolhurst, 2017).
On the other hand, According to Friedman (1970), the nature of CSR activity is subject to
conflict. According to the CSR concept, involving in the corporate social responsibility was a
difficulty or clashes between interest of manager and interest of shareholders. As per the
theory of stakeholders, it was stated by Michael Hopkins (2003) that the corporate social

DISSERTATION 8
responsibility was concerned with handling the internal stakeholders and external
stakeholders of an organization or firm in the communally responsible manner. Further, the
major objective of corporate social responsibility is to set high living standards for the
stakeholders whereas maintaining the productivity and success of an organization. By
accepting the corporate social responsibility-4 part definition of Carroll (1979), Frank
Tuzzolino and Barry Armandi (1981) form a corporate social responsibility’s requirement
hierarchy framework patterned after Maslow’s (1954) require hierarchy. The authors stated
how a business have physical requirements, security, honor and self-actualization wants
(Ruiz, Garcia and Revilla, 2016).
Furthermore, it was concluded by 4 dimensional model of Carroll, Alexander Dahlsrud
(2006), there are five dimensions of CSR, the stakeholder dimension, the social dimension,
the economic dimensions, the environment dimension, and the voluntariness dimension. The
environmental dimension got an importantly lower dimension in comparison of others
dimensions. The social dimension, economic dimension and stakeholder dimension got big
attention in descending order. Some essential subjects may state the corporate social
responsibility and the problems such as fair operating practices, an environment, and
problems related to customers or clients, participation of various communities and
establishment, organisational governance and the human rights. The more important thing is
to identify that how corporate social responsibility is socially made in the particular context.
The final object of corporate social responsibility is to make a dynamic, reasonable economy
on the basis of knowledge. It is required by the firm to bear in mind that all the people
involving workers, dealers, consumers, stakeholders and community (McCambridge,
Hawkins and Holden, 2014).
Impacts of corporate social responsibility on the bank-
The attitude of bank for the present problems of society regarding the culture and
environment become more identified by the clients of bank. As per the consequences, the
banks are newly inspired by objectives other than income, proceeds, and share of market
because an alternative motivation may be better for both society and the bank itself. An
organisation involving in corporate social responsibility will ultimately achieve reasonable
benefit in the place of market by reduction or abolition of fines or penalties imposed by
government. At the similar time, it can diminish its complete coverage of company to risk.
Moreover, corporate social responsibility definitely influences current value of the cash flow
of company (Radzi, et al 2018).

DISSERTATION 9
The corporate social responsibility initiatives are also probable to develop confidence of
workers, which points to higher efficiency, developed performance and less labour
difficulties. Besides those advantages, the corporate social responsibility also has a positive
impact on the banking sector that may be analysed in two important associations of corporate
social responsibility and financial performance and image of bank. In the present time, There
has been important and interest in relationship between the corporate social responsibility
initiatives and corporate financial performance. According to Margolis and Walsh, 2003, the
relationship can be divided into three groups such as positive relationship, negative
relationship and the neutral relationship. However, after an evaluation of all appropriate and
significant studies, it is clear that the most research consequences demonstrate a progressive
influence on the financial growth (Tong, 2017).
The positive relationship states that corporate social responsibility advances the value of firm.
It is found that the quality of corporate social responsibility in the banks might go a long way
for decreasing the risk connected with financial organisations, which may increase financial
performance. Consequently, a diversity of the corporate social responsibility activity is not
only involved by the bank but also the financial organisations. On the other hand, the
complete corporate social responsibility measure has a bad influence on the returns of stock,
so does corporate financial performance. By estimating each indicator of social performance,
Brammer et al. (2006) proves that the measure of employee performance has expressively
bad influence on returns of stocks. By judgement, while community measure has positive but
not little influence environment is the measure that has bad and no important impact on the
returns of stock (Golob, Verk and Podnar, 2015).
For the comparison of neutral relationship between corporate social responsibility and
corporate financial performance, it is found that there is no important connection between
price of stock and the corporate social responsibility parameters. Another reason is the issue
of measuring the CSP and pure marketing strategy. The neutral relationship suggests that
there are many factors, which prevent the experts from the secure outcomes. The more
important thing for the bank is to increase bank image because it is required by the banks to
get the aim of maximizing profit (Kang, et al 2015).
The perceptions towards the corporate social responsibility-
Internationally, the awareness of the bank manager, stakeholder, authorities, lecturers, and
clients about corporate social responsibility, Sustainable Growth and Non- Financial

DISSERTATION 10
Reporting is improving. Therefore, the contribution of financial organisations containing
banks to corporate social responsibility recently become important considering the critical
role playing in funding the economic and growing actions of the world (Swami and Bankar,
2016).
The behaviour of managers in respect of corporate social responsibility are central to the
corporate social responsibility strategy procedure of the banks. L. Zu (2009) states that a
large proportion of the Chinese managers have good knowledge of concept of corporate
social responsibility and is in the favour of corporate social responsibility. In the context of
latest economic development, the managers assigned more obligations to these three
stakeholders such as government, consumers, and workers. The reason is that the
stakeholders namely government, consumers and workers have huge influence on the image
and reputation of firm. According to Maignan and Ferrell (2003), ninety three percent of
chief executive officers in the North America and Eighty two percent of chief executive
officers in Europe viewed accountable activities for the all stakeholders as a major impact on
the social image of the company. The Chinese managers identify that the advantages of being
a good corporate citizenship attracts the best workers, reducing lawsuits and reducing the cost
of capital. The corporate social responsibility is constant with the pursuit of benefits
(Hardeck, Harden and Upton, 2018).
It is believed by corporate social responsibility professionals that the proper management of
corporate social responsibility is most important element for making the value of
shareholders. Along with this, it is realized by the authorities from banking sector that
corporate social responsibility is very significant because of the major developments of
corporate social responsibility in a current economy. It was stated with the help of perception
of business and stakeholder that businesses and shareholders see fifteen elements as
significant, but in various stages. The better environmental growth is very important element
which banking sectors concern. Furthermore, the good health is ranked as first, safety is
ranked as second, and corporate governance is ranked as third. The Humanity is at last
position among all the fifteen elements. The relatively traditional extents of corporate social
responsibility involving the environmental growth, healthcare, security, good corporate
governance, and human resources still control the concerns of the both shareholders and
industry (Stoian and Gilman, 2017).
It is believed by many respondents that the corporate social responsibility is significant
element for making shareholder value. The corporate social responsibility programs are very

DISSERTATION 11
important. The reason is that corporate social responsibility program may bring the great
future. Many people believe that corporate social responsibility program are helpful for the
image of banks and advertisements. According to Persefoni Polychronidoua et al. (2014) that
most of people do not earn profit only for the banks but also for the society. Persefoni
Polychronidoua et al. (2014) states that many people will change the bank if their banks
eliminated the corporate social responsibility program. In this way, the corporate social
responsibility and the image by the corporate social responsibility program are very critical
for the development of banks and their existence. The image of banks make contribution in
the great way to attracting the more clients and keeping satisfaction of the old client. It will
help the banks to retain the clients (Nyuur, Ofori and Debrah, 2016).
The barriers for the banks to undertake corporate social responsibility-
The most important to identify that any company can take decision to not to undertake
corporate social responsibility programs due to many barriers. The economic barriers,
political barriers, barriers related to knowledge and the perceptional barriers. These barriers
stop Chinese SMEs from involving in corporate social responsibility are précised jointly
(Raub and Blunschi, 2014). Various barriers are as follows-
Economic barriers
It is believed that the investment in the social responsibility is the economic burden for the
bank, where banks are required to pay additional money, more time, and energy to organise
corporate social responsibility program. Generally, Small organisations can lack resources
like finance, time, or human resources to devote to corporate social responsibility. It is also
found that the corporate social responsibility may also affect bank loan badly in many ways
(Dias, Rodrigues and Craig, 2017).
Political barriers
In United Kingdom, there is lack of structure of policy and the incentives required to adjust
attitude of the leader of bank. The local government may lack knowledge about the corporate
social responsibility in the banking sector and lack of incentives to impose law in respect of
corporate social responsibility application in the banks. It is easier for them to take promotion
by the short-term economic successes than by long term environmental and the social
promises. It is required to make various roles and the duties of the government or banks or
financial institutions in the application of corporate social responsibility measures.