Decoupled Relationship Between CSR Bank Disclosures and SME Financing: A Case Study of Alpha Banks in Lebanon

Abstract

Purpose: Despite Lebanon having a burgeoning banking industry across the MENA region, the banks social impact on the society has largely remained unassessed. Based on institutional theory, this study explores the practice of corporate social responsibility of Alpha banks in Lebanon and investigates its association with their disclosed numbers of small and medium enterprises (SME) financing. Design/Methodology/Approach: Using qualitative content analysis based on the framework of the Global Reporting Initiative (GRI), CSR and SME scores were inferred and then regressed. Findings: A negative relationship was established between the two scores suggest that Alpha banks in Lebanon exhibit a decoupling relationship between their policies and practices due mainly to the lack of regulatory coercive pressures while conforming to the mimetic and normative pressures. Practical Implications:The research results may assist SMEs in this sense by reshaping their considerations of the available financing tools in order to achieve their objectives. Originality/Value: The use of institutional theory in management research has advanced the understanding of organizational practice of adopting new strategies to sustain organizational development.