CORPORATE SOCIAL RESPONSIBILITY IN BANKING INDUSTRY

Abstract

Capitalism has brought increase of competition pressure year on year. This competitive situation has influenced a need of corporation flexibility on the markets where exists and consequently development of soft skills in doing business as well. All this has influenced emerging of Ethical code in doing business of corporations, where is defined what is acceptable and what is not acceptable in business conduct. One of the fields of ethic code is society responsible business conduct represented in Corporate Social Responsibility (CSR) policies. CSR activities, if implemented properly, positively influence corporate business. In the first place this is in area of client relationships represented in easier access to a clients and retention of the clients. Except this positive effect of CSR polices there is also positive effect in the area of employment represented in easier access to better quality of employees, in longer retention of those employees and in improved motivation of the employees. All this positively influence business of corporations which implement CSR activities which also has positive effect in their profitability and in their competitive status on a market. With this is also set aim of this paper which is to investigate if there is positive correlation between a bank`s business success and success of implementation of Corporate Social Responsibility programs in society where it does a business.