Banking Reputation and CSR: a Stakeholder Value Approach

Purpose Following the sub-prime crisis, Corporate Social Responsibility (CSR) and Corporate Reputation (CR), have been receiving increasing attention from academics and practitioners, especially in the banking sector. In this context, our paper intends to: 1) carry out a review of prior studies both on reputation and CSR of banks, in order to identify determinants and dimensions of such concepts; 2) to explore the relationship between CR and CSR within the banking services; 3) to propose a conceptual framework aimed at clarifying how responsibility and reputation interact with all stakeholders of banks. Methodology approach The methodology adopted is a review process of literature, based on three stage procedure: data collection, data analysis and data synthesis. Our study follows a logical inductive approach that is an essential part of scientific reasoning and of academic research, especially in studies of management (Marshall and Rossman, 1999). Findings The paper identifies two main findings. Firstly, it argues that CSR is an important reputational driver, able to create economic value over time. The second finding is the bi-directional relationship that links CSR to the CR of banks, which is very important in satisfying all stakeholders expectations. Originality/value The value added of our research concerns the proposal of a theoretical model through which: a) understanding connections, dissimilarities and logical implications between CSR and CR, b) integrating CSR and CR approaches in the banking services and c) strengthening all stakeholders’ relationships.