Csr Sbi
INTRODUCTION:
Corporate Social responsibility is best defined by the World Business Council as “The continuing commitment by business to behave ethically and contribute to economic development, while improving the quality of life of the workforce and their families as well as of the local community and society at large”.
Banking is a specialized business. Banks have large number of creditors and failure of one bank can lead to the failure of many other banks as the customers lose faith that can cripple the entire economy of a nation. The recent global financial meltdown has created a negative and gloomy sentiment in all the stakeholders in the entire banking industry, including in India since financial markets in India even if loosely, but are connected to global financial markets. However, prior to this meltdown, customers, and other stakeholders held positive expectations about their banks performance.
If banks can leverage this social capital in times of distress, it can help to negate or reduce the potential negative influence on their performance. CSR orientation of banks can be a useful tool for them to tide over such crises in future, if banks maintain their relationships with stakeholders in making their businesses more sustainability. CSR, among other things, is a key stakeholder relationship building activity. It was also found that the CSR brand does reap more relationship benefits from its social initiatives than do its competitors indicating the competitive positioning and relationship benefits of the brands associated with CSR.
In the Indian context too, previous studies have shown that Indian banks concentrate its CSR activities more on areas such as, education, balanced growth, health, and environmental marketing, and incorporate customer satisfaction as a CSR activity. Given this evidence, can we expect that banks in India consider CSR orientation and stakeholder relationship marketing orientation as flip sides of the same coin.
In
Corporate Social responsibility is best defined by the World Business Council as “The continuing commitment by business to behave ethically and contribute to economic development, while improving the quality of life of the workforce and their families as well as of the local community and society at large”.
Banking is a specialized business. Banks have large number of creditors and failure of one bank can lead to the failure of many other banks as the customers lose faith that can cripple the entire economy of a nation. The recent global financial meltdown has created a negative and gloomy sentiment in all the stakeholders in the entire banking industry, including in India since financial markets in India even if loosely, but are connected to global financial markets. However, prior to this meltdown, customers, and other stakeholders held positive expectations about their banks performance.
If banks can leverage this social capital in times of distress, it can help to negate or reduce the potential negative influence on their performance. CSR orientation of banks can be a useful tool for them to tide over such crises in future, if banks maintain their relationships with stakeholders in making their businesses more sustainability. CSR, among other things, is a key stakeholder relationship building activity. It was also found that the CSR brand does reap more relationship benefits from its social initiatives than do its competitors indicating the competitive positioning and relationship benefits of the brands associated with CSR.
In the Indian context too, previous studies have shown that Indian banks concentrate its CSR activities more on areas such as, education, balanced growth, health, and environmental marketing, and incorporate customer satisfaction as a CSR activity. Given this evidence, can we expect that banks in India consider CSR orientation and stakeholder relationship marketing orientation as flip sides of the same coin.
In