The importance of corporate social performance in place branding of retail banks in Egypt

Abstract

Purpose -Branding issues and corporate social performance (CSP) are growing in importance for both companies and customers. In place marketing, places could be branded as each place should define and communicate its competitive advantages effectively and adapt to fit the needs of place customers. On the other hand, in Egypt, a major challenge for marketers is retail banking which is experiencing significant changes and entails the marketing of intangible services rather than tangible products. The purpose of this paper is to provide a useful starting point to consider retail banks as place brands, and advise place brand managers about how to integrate their values with CSP and branding issues. Design/methodology/approach -The study is quantitative in nature, focusing on the relationship between CSP measures and place branding through enhancing brand equity. A total of 220 self-administered surveys were distributed among bankers and investors of two Egyptian-based retail banks listed in the CASE (Cairo and Alexandria Stock Exchange). Findings -Results indicated that there is a lack of association between CSP measures and brand equity measures of retail banks in Egypt. Findings yield useful insights for both academics, and corporate and brand practitioners about the importance of synthesizing brand equity of a place with CSP in the banking sector.Research limitations/implications -A longitudinal and qualitative research is required to investigate how customers perceive retail banks' brands in Egypt and whether or not they value banks applying CSP. A quantitative study should be conducted on a larger sample to generalize findings within the banking sector. Practical implications -CSP is mainly driven by external pressures such as pressure of international financial institutions. This will only encourage passive compliance without any effective change on the ground in terms of greater corporate accountability and transparency. Banks should emphasize their CSP to develop or enhance their brand equity. Social implications -Results depicted that if the individuals themselves can conduct their businesses in an ethical and sustainable manner, then companies will inevitably conform to any external CSP standard that will be utilized in the development of place brands image and the welfare of the society. Originality/value -Limited research has addressed the relationship between CSP and place branding. This study draws a model that investigates the relationship between applying corporate social responsibility (CSR) and place branding through improving brand equity of retail banks in a developing country, namely Egypt. Results of this research might be of interest to companies, practitioners, and society concerning the role of CSR in developing a place brand.

Bank Employee Perceptions of Corporate Social Responsibility Practices: Evidence from Egypt

“…However, to the best of our knowledge, no previous studies have examined CSR adoption in the Egyptian banking sector, except Shahwan and Habib [27,33]. Shahwan and Habib [27] focused on the difference between Islamic and conventional banks, and Tantawi and Youssef [33] examined the relationships between branding issues and corporate social performance. Therefore, this study aims to contribute to the existing literature by exploring the current status of CSR practices used in the Egyptian banking industry.…”

“…This index is one of the significant ESG indexes in Africa and the MENA region. This has motivated Egyptian banks to engage in CSR performance and reporting to better communicate with their customers and get support from various stakeholders [33].…”

Contextualising and critically theorising corporate social responsibility reporting: Dynamics of the late Mubarak Era in Egypt

“…Much interviewee appreciation of CSR/CSR reporting was similar to how Western-type CSR/CSR reporting is seen by its critics. CSR reporting was seen by some interviewees in terms of somewhat dishonourable PR, a communications and marketing strategy to look good (Kuasirikun, 2005) that made sense only if there was a business case, the latter extending to benefits from reflecting international forces and matching competition (see Mohie-Eldin, 1995;Sowers, 1999;Tantawi & Youssef, 2012):…”

Online Disclosure of University Environmental Responsibility: A Case of Indonesia

“…The entity tries to convince people that its operations are in line with the expectations and perceptions of the society (O'Donovan, 2002). Previous research conducted on business companies shows that the disclosure of social and environmental responsibilities has an impact on stakeholder perceptions (Crowther & Aras, 2008;Elsakit & Worthington, 2012), increasing public reputation and image (Effiong, Akpan, & Oti, 2012), and improving brand image (Tantawi, Passent;Youssef, 2008) to gain competitive advantage. By learning from business companies, it is known that disclosure of social and environmental responsibility can be an attractive option to prospective students.…”