The Unsustainability of Banking Operations in the Republic of Croatia vis-à-vis Social (Ir-)Responsibility

Abstract

Socially responsible banking operations, i.e. considering their influence on society, interdependence and holistic approach, have become vitally important in the recent decade for long-term business operations, not only for banks themselves, but the entire economy. It is reflected in many ways, from employee relations to their willingness to finance social projects; but in the context of banking, one essentially needs to address the ethics of the comprehensive/holistic banking operations, i.e. the way how the bank achieves its profit targets. Specifically, the bank should achieve its profitability recognizing social interests, which in the long run leads to a stable banking system relying on a healthy real economy. Unfortunately, banks in the Republic of Croatia focused on short-term profit targets and did not contribute to an increased economic wealth of the country.