The impact of social and environmental sustainability on financial performance: A global analysis of the banking sector

Nizam, Esma; Ng, Adam; Dewandaru, Ginanjar; Nagayev, Ruslan; Nkoba, Malik Abdul Rahman

doi:10.1016/j.mulfin.2019.01.002

Cited by 230 publications

(183 citation statements)

References 71 publications

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“…There are many articles in the literature encouraging banks to invest in CSR as Belasri et al [44] claim that CSR has a positive impact on bank efficiency. In this regard, the results of the research of Nizam et al [45], Maqbool and Zameer [46], Wu et al [47], and Cornett, Erhemjamts, and Tehranian [48] explain that there is a positive relationship between the CSR activities and financial performance of banks. Nonetheless, Oyewumi et al [49] argue that investing in CSR depletes the banks' financial resources, therefore, the recommendation that the banks to disclose their commitment to CSR activities to increase the banks' reputation, which will improve banks' financial performance.…”

Section: Banking and Sustainabilitymentioning

confidence: 97%

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Sustainable Banking; Evaluation of the European Business Models

et al. 2020

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Sustainability has become one of the challenges of today's banks. Since sustainable business models are responsible for the environment and society along with generating economic benefits, they are an attractive approach to sustainability. Sustainable business models also offer banks competitive advantages such as increasing brand reputation and cost reduction. However, no framework is presented to evaluate the sustainability of banking business models. To bridge this theoretical gap, the current study using A Delphi-Analytic Hierarchy Process method, firstly, developed a sustainable business model to evaluate the sustainability of the business model of banks. In the second step, the sustainability performance of sixteen banks from eight European countries including Norway, , assessed. The proposed business model components of this study were ranked in terms of their impact on achieving sustainability goals. Consequently, the proposed model components of this study, based on their impact on sustainability, are respectively value proposition, core competencies, financial aspects, business processes, target customers, resources, technology, customer interface, and partner network. The results of the comparison of the banks studied by each country disclosed that the sustainability of the Norwegian and German banks' business models is higher than in other counties. The studied banks of Hungary and Spain came in second, the banks of the UK, Poland, and France ranked third, and finally, the Italian banks ranked fourth in the sustainability of their business models.

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Section: Banking and Sustainabilitymentioning

confidence: 97%

“…Nizam et al [45] study 713 banks from 75 countries from 2013 to 2015. Their finding reveals that accessing environmental financing improve positively the financial performance of the banks.…”

Section: Banking and Sustainabilitymentioning

confidence: 99%

Sustainable Banking; Evaluation of the European Business Models

et al. 2020

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“…Whereas according to Skomorohov & Hein (2016), economic concept contains the understanding of the various business that is done by human efforts to meet the needs of his life. While Nizam et al (2019), economics contains understanding various businesses are done by human beings in fulfilling their life needs. So from understanding the above can be concluded that the economy is every system of relationships that determines the allocation of limited or rare resources in a variety of businesses committed by humans to fulfill his life needs.…”

Section: Arak and Tuak Beverage As An Economical Choice Of Palm Treesmentioning

confidence: 99%

Selling arak is a business opportunity in sidemen village

Astuti¹,

Yulianthi²,

Ginaya³

et al. 2020

ijllc

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Arak Bali is a traditional Balinese alcoholic beverage that is still popular in this modern era. Balinese people are already very familiar with this type of alcoholic drink, especially those who are young or who have religious ceremonies. Arak Bali is widely produced in Sidemen village, Karangasem Regency. This study applies a descriptive qualitative research method. The data were collected through participating observation, interviews with the community in Sidemen village as well as a literature study of Arak Bali. The study found, so far Arak needs have been widespread, from the religious need to commodify into the needs of tourism, especially in bars and restaurants. The Arak cocktail has become a spirit in beverage blends, which can be found in the bars and restaurants in Bali. Therefore, this type of beverage is still an item that has high value in the economic sector as well as support for the life of farmers in Sidemen village. This condition makes farmers in the village of Sidemen to consistently produce wine and retain their legacy.

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“…In particular, Cooper, Jackson, and Patterson emphasize that a poor loan portfolio negatively influences the sustainability of banks [20]. On the other hand, there are items that measure the effect of the reversal, namely the importance of the bank's sustainability for its financial performance [21][22][23][24].…”

Section: A Brief Literature Review and Hypothesesmentioning

confidence: 99%

Business Model as a Concept of Sustainability in the Banking Sector

Karkowska

2019

Sustainability

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The paper presents the concept of a sustainable bank by developing a framework based on performance of different business models. Traditional banking and investment activities, such as trading in securities or securitization, may reduce the risk of commercial banks and provide an attractive approach to sustainable finance. Using the method of assessing the performance of a bank, the study appraises the degree of sustainability of the bank from different stakeholders’ points of view. The aim of the article is to verify the research question: how does diversification of traditional activities of commercial banks affect their sustainability? The analysis has been extended by the importance of country-specific and macroeconomic factors. The survey was conducted on 368 commercial banks from European countries, using data from the period 1998−2015. The study contributes to the ongoing discussion on the recognized profitability and sustainability nexus as an important part of sustainable finance that may be a powerful solution to financial crises.

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The impact of social and environmental sustainability on financial performance: A global analysis of the banking sector

Cited by 230 publications

References 71 publications

Sustainable Banking; Evaluation of the European Business Models

Sustainable Banking; Evaluation of the European Business Models

Selling arak is a business opportunity in sidemen village

Business Model as a Concept of Sustainability in the Banking Sector

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