Ethical and Social Responsibility of Financial Institutions: Influence of Internal and External Pressure

Autor: Salina Mad, Faizah Darus, Mehran Nejati
Rok vydání: 2015
Předmět:
Zdroj: Procedia Economics and Finance. 28:183-189
ISSN: 2212-5671
DOI: 10.1016/s2212-5671(15)01099-0
Popis: Financial institutions are expected to embed sustainable business practices as part of their ethical approach in conducting their businesses. This study examines the role of internal and external pressures in encouraging corporate social responsibility (CSR) reporting among financial institutions in Malaysia. The sample for the study comprised of 20 financial institutions in Malaysia over a four-year period from 2008 – 2011. Content analyses of annual and sustainability reports were undertaken to measure the quality of ethical and social responsibility reporting among the financial institutions. An un-weighted CSR quality disclosure index was developed to measure the quality of information reported. The findings of the study revealed that the quality of CSR information disclosed improved over the four-year period. This is a positive development suggesting that the financial institutions are becoming more socially responsible. The results of the study also revealed that it is the external pressure in the form of concentrated ownership and customers’ pressure that can either inhibit or motivate the quality of CSR reporting while the internal pressure prove not to be a significant driver in promoting the quality of CSR reporting.
Databáze: OpenAIRE
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