Reputation Management in Global Financial Institutions

The Relation between Corporate Social Responsibility and Bank Reputation: A Review and Roadmap

“…Most .From these studies it emerges that banks operate within a social environment.The fact that banks are sensitive to the social environment in which they exist leads to increased reputation, and sensitivity to the social environment takes place in the form of supporting activities that benefit the public and are sensitive to the physical environment.Reputation that has emerged in this way contributes greatly to the intangible assets of the business (Okur & Arslan, 2014).With regard to other qualitative papers, three studies explicitly rely on relations between CSR reporting and reputation.According to legitimacy theory, CSR reporting is aimed at providing information that legitimizes a company's behavior by intending to influence stakeholders' and eventually society's perceptions about the company in such a way that the company is regarded as a "good corporate citizen" and its actions justify its continued existence (Guthrie & Parker, 1989). Among these studies, Arshad et al (2012) examine the effect of Islamic CSR disclosure and corporate reputation as well as performance.The authors argue that CSR activities communicated in corporate annual reports are significantly positively related to corporate reputation as well as firm performance, while Bartlett (2005) demonstrates that adoption of CSR reporting is linked to higher reputation indices in a sample of Australian banks.The literature review presented by Pérez (2015) demonstrates that CSR reporting and corporate reputation are positively correlated.These results highlight that banks are proactively implementing and disclosing CSR activities that meet and strengthen the needs of multiple stakeholders.Other qualitative studies confirm a positive relationship between CSR and reputation in the banking industry (Xifra & Ordeix, 2009).In addition, Xifra and Ordeix (2009) illustrate Banco Santander's management of reputation and propose the bank as a paradigmatic case for the importance of dialogue and reputation during a crisis.Finally, in contrast to the methods and results described so far, I have found works that show conflicting opinions with respect to the results of the field under study.These studies reveal that the motivations behind CSR programs remain driven by profit-led strategies, defining the relationship between CSR and reputation as a paradox and a moral trap (Bowman, 2013; McDonald, 2015; Vogler & Gisler, 2016).…”

The Relation between Corporate Social Responsibility and Bank Reputation: A Review and Roadmap

“…Most of the qualitative papers show that socially responsible conduct gives rise to positive reputational outcomes that contribute to increasing performance ( .From these studies it emerges that banks operate within a social environment.The fact that banks are sensitive to the social environment in which they exist leads to increased reputation, and sensitivity to the social environment takes place in the form of supporting activities that benefit the public and are sensitive to the physical environment.Reputation that has emerged in this way contributes greatly to the intangible assets of the business (Okur & Arslan, 2014).With regard to other qualitative papers, three studies explicitly rely on relations between CSR reporting and reputation.According to legitimacy theory, CSR reporting is aimed at providing information that legitimizes a company's behavior by intending to influence stakeholders' and eventually society's perceptions about the company in such a way that the company is regarded as a "good corporate citizen" and its actions justify its continued existence (Guthrie & Parker, 1989).Among these studies, Arshad et al (2012) examine the effect of Islamic CSR disclosure and corporate reputation as well as performance.The authors argue that CSR activities communicated in corporate annual reports are significantly positively related to corporate reputation as well as firm performance, while Bartlett (2005) demonstrates that adoption of CSR reporting is linked to higher reputation indices in a sample of Australian banks.The literature review presented by Pérez (2015) demonstrates that CSR reporting and corporate reputation are positively correlated.These results highlight that banks are proactively implementing and disclosing CSR activities that meet and strengthen the needs of multiple stakeholders.Other qualitative studies confirm a positive relationship between CSR and reputation in the banking industry (Xifra & Ordeix, 2009). In addition, Xifra and Ordeix (2009) illustrate Banco Santander's management of reputation and propose the bank as a paradigmatic case for the importance of dialogue and reputation during a crisis.Finally, in contrast to the methods and results described so far, I have found works that show conflicting opinions with respect to the results of the field under study.These studies reveal that the motivations behind CSR programs remain driven by profit-led strategies, defining the relationship between CSR and reputation as a paradox and a moral trap (Bowman, 2013;McDonald, 2015;Vogler & Gisler, 2016).…”