Abstract or Introduction
In the wake of the recent and still ongoing utterly devasting global financial crisis, both reputation and legitimacy of banks are highly under pressure. This situation is best demonstrated by the current protests in New York, generally known under the heading of ‘Occupy Wall Street’ (Krugman, 2011). The fact that the protestors’ claims are even generally acknowledged by leading economists, such as Nobel laureates Stiglitz and Krugman, and to some extent by Obama himself, shows how the financial crisis brought the banking industry and its contested practices dramatically into the public consciousness. It resulted in a massive erosion of trust and reputation in the industry. In terms of social responsibilitiy, this crisis showed that no other sector and profession has a “comparable ability to privatise gains and socialise losses” (Decker & Sale, 2009, p. 136). In order to address the current negative externalities of banks, such as social costs related to government bailouts, and the question of their crucial role in our economy and society, the concept of Corporate Social Responsibility (CSR) can serve as a helpful framework. Firstly, this essay aims to show the essential role finance, and thereby the banking industry, is playing in our economy. Afterwards, the results will be used in order to assess the potential relationship between finance and a more sustainable economy. The following section will analyse the potentials banks have to create shared value due to the crucial role of trust and reputation.
- Quote paper
- Ronny Röwert (Author), 2011, CSR in the Banking Industry, Munich, GRIN Verlag, https://www.grin.com/document/182359
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