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Social and Environmental Responsibility in the Banking Industry: A Focus on Commercial Business

  • Beatriz Fernández-Olit
  • Marta de la Cuesta-González
  • Francisco Pablo Holgado
Chapter
Part of the Palgrave Studies in Sustainable Business In Association with Future Earth book series (PSSBAFE)

Abstract

The purpose of this chapter is to measure social and environmental responsibility in the commercial activities of banks (external CSR performance)—in contrast to other models based on internal stakeholders—and define to what extent it is influenced by a bank’s size, banking model or business specialization. The banking sector is composed of diverse entities, which is not usually considered when social and environmental responsibility is defined and measured. Business risks and impacts of small- and medium-sized entities oriented to the commercial retail market are different from those of universal banks—which are highly diversified—both in financial and sustainable terms. Thus, the way CSR is being addressed by the banking industry should be reviewed to determine if there are diverse intra-sectorial approaches. An empirical analysis of European banks suggests that the current homogenization of the banking industry is unfavorable in terms of sustainability and responsibility.

Abbreviations

A4:

ASSET4 ESG database

ANOVA:

Analysis of variance

CSR:

Corporate social responsibility

ESG:

Environment, social and governance

EU:

European Union

ROE:

Return on equity

SME:

Small and medium enterprises

UK:

United Kingdom

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Copyright information

© The Author(s) 2018

Authors and Affiliations

  • Beatriz Fernández-Olit
    • 1
  • Marta de la Cuesta-González
    • 1
  • Francisco Pablo Holgado
    • 1
  1. 1.Universidad Nacional de Educación a Distancia (UNED)MadridSpain

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