A citizen-centred approach to CSR in banking

Abstract

PurposeThis study aims to demonstrate how banks can align their CSR investment to community needs and citizen preferences. A grounded theory inductive approach is applied to deliver a community-centred process that banks can apply to inform CSR investment decisions.Design/methodology/approachThis study employed a sequential mixed-method research design to identify areas of need from the perspective of community leaders and members through depth interviews. Following thematic analysis, citizen preferences for eight priority areas were elicited using best-worst scaling (BWS).FindingsClear investment preferences emerged with citizens preferring six community investment causes, namely, (1) infrastructure, (2) crisis and prevention support, (3) community groups, (4) youth facilities and activities, (5) initiatives that support the local environment, and (6) physical activity promotion. The forming of community advisory committees emerged as one approach that banks could apply to ensure long-term citizen-centred CSR investment decisions.Research limitations/implicationsThis study is limited to one community and one community bank and a small convenience, cross-sectional data sample.Social implicationsCommunity-oriented financial institutions should centre investment decisions on community need and citizen preferences ensuring investments made deliver the greatest societal benefit and community support for the banks is garnered.Originality/valueThis paper provides important contributions to improve the effectiveness of CSR initiatives, providing an inductive, methodological approach that financial institutions can follow to better align their CSR investment to community needs and preferences.

Which CSR Activities Are Preferred by Local Community Residents? Conjoint and Cluster Analyses

“…Our findings differed from van Hierden et al [48] who noted that communities in Australia preferred infrastructure, crisis, and prevention support, while this research found that the local community preferred CSR activities that improved the economy and the environment. One probable explanation for this disparity is the context of this study, which was located in a developing nation, i.e., Thailand.…”

“…CSR can be viewed as a mediating role for companies [36] to manifest societal values and accountabilities, balance stakeholder interests, and regain trust from the community [34]. Many studies have emphasized the importance of local communities (e.g., Chapple and Moon [45] and Srisuphaolarn [7]) but very few studies have investigated the preferred CSR activities of local residents (e.g., van Hierden [48]). This limited understanding of CSR preferences presents the research gap that this study fills by answering the research question "What are the preferred CSR dimensions of residents living in the vicinity of IEs?…”

“…Strategically integrating stakeholders' needs and expectations [63] coherently offer benefits to companies and the well-being of society. A citizen-centric strategy is important in various fields, including urban development [64], health service development [65], and community investment [48]. Citizen centricity embraces community interests [66], and focuses on audiences who benefit from CSR initiatives [48].…”

“…A citizen-centric strategy is important in various fields, including urban development [64], health service development [65], and community investment [48]. Citizen centricity embraces community interests [66], and focuses on audiences who benefit from CSR initiatives [48]. Despite the significance of economy and environment, the cluster analysis revealed resident heterogeneity.…”

Corporate social responsibility and customer-citizenship behaviors: the role of customer–company identification

“…Considerable attention has been paid to CSR activities in the banking sector (Fatma and Rahman, 2016). Nowadays, Indian banks are also investing their money into community welfare programmes and solving social and environmental problems (Rugimbana et al , 2008; van Hierden et al , 2020). Banks have started to increase their spending on CSR activities (Marin et al , 2009) and become proactive investors in socially responsible activities (He and Li, 2011).…”