VALUES-BASED MANAGEMENT IN COOPERATIVE BANKS: BALANCING SELF-PERCEPTION WITH PUBLIC PERCEPTION?

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Abstract

The main target of cooperative banks is not to maximize profits but to jointly manage a business. With this in mind, assuming a stakeholder-oriented behavior of cooperative banks, we address whether cooperative banks consider multiple stakeholder values and take a sustainable governance approach. We conduct a content analysis of the annual reports of German cooperative banks, with reference to two research questions: Are the basic principles and values of cooperatives optimally realized and communicated to external stakeholders? Can cooperative banks comply with the requirements of the triple bottom line, namely the economic, environmental and social responsibility? We find that cooperative banks do not effectively communicate their cooperative values and thus inadequately manage to demonstrate the implementation of their core values. Yet cooperative banks avail of a sustainable business model that offers the potential of sustainable business conduct.

Keywords: Corporate Social Responsibility, Sustainability, Cooperative Banks, Values-Based Management

How to cite this paper: Kühn, A.-L., Stiglbauer, M., & Zschäckel, E. (2013). Values-based management in cooperative banks: Balancing self-perception with public perception? [Special conference issue]. Corporate Ownership & Control, 10(3), 69-85. https://doi.org/10.22495/cocv10i3siart6