The Public Function of Commercial Banks: CSR Comes to Rescue
Maurits de Jonge, Student (University), Netherlands, Premium Member
A widely shared point of view is that banks should create long term shareholder value and also have a public function. This public function is getting increased attention as a result of recent societal developments.
Most commercial banks are primarily aiming at creating long-term shareholder value. I recommend such banks to reflect their public function through Corporate Social Responsibility and their core values. These core values can basically be applied at 3 levels: employees, executives and/or the organization as a whole. Typical core values include: sustainability, culture, socially responsible investing, good behavior, duty of care and integrity.
To ensure that there will be no neglect of the corporate responsibility or of the integrity of its employees and executives, several CSR instruments can be used:
- INSTRUMENTS EMERGING FROM VARIOUS REGULATORS. Typically through legislation by national governments or through various directives ...