Demystifying corporate social responsibility disclosure strategy and practices in the banking sector of emerging economy

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Abstract

Corporate social responsibility (CSR) is recognised as one of the most significant strategic business practices and has become an indispensable element of long-term corporate strategy worldwide to gain a competitive edge (Aspal et al., 2023; Nuredini & Matoshi, 2022). This research investigates the level of CSR disclosure (CSRD) practices of banking sector companies operating in India. The CSRD practices of banking companies are investigated by employing content analysis techniques for the most current financial year, 2021–2022. Company-specific and domain-specific scores have been calculated for ranking motives. According to our investigation results, India’s banking sector has limited involvement in CSRD. Our study further indicates that the banking sector primarily focuses its CSR efforts on ‘Education and training’, ‘Health and hygiene’, and ‘Rural development’. The study finds no difference in CSRD between public and private sector banks (PVSBs) in India during the reporting period. This study is the first investigation in India to evaluate the level of CSRD in the banking sector after adopting the Companies Act in 2013. The results can help regulators and policymakers make informed decisions and encourage banks to be more responsible by comprehensively disclosing their CSR spending.

Keywords: Corporate Social Responsibility, CSR Disclosure, Indian Banking Sector, Content Analysis

Authors’ individual contribution: Conceptualization — P.D., K.D., A.G., and H.D.; Methodology — P.D., V.S., H.D., A.K.B., and R.K.; Software — P.D., K.D., A.G., and H.D.; Formal Analysis — P.D., K.D., H.D., and R.K.; Writing — Original Draft — P.D., K.D., H.D., and R.K.; Writing — Review & Editing — P.D., V.S., H.D., and A.S.; Visualization — P.D., V.S., A.K.B., and H.D.; Supervision — P.D., A.G., H.D., and A.S.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: G38, H21, H53, L21, M14

Received: 13.01.2024
Accepted: 25.07.2024
Published online: 30.07.2024

How to cite this paper: Debnath, P., Das, K., Goel, A., Singh, V., Bhuyan, A. K., Debi, H., Kanoo, R., & Saha, A. (2024). Demystifying corporate social responsibility disclosure strategy and practices in the banking sector of emerging economy. Corporate & Business Strategy Review, 5(3), 189–198. https://doi.org/10.22495/cbsrv5i3art18