Corporate Social Responsibility

...

- Supervisor

In 2008, the subprime mortgage destroyed the world economy and resulted in the global financial recession. During and after the crisis, financial institutions, in particular these large banks, are heavily criticized by the public for the failure about supervision of corporations (Cornett, Erhemjamts & Tehranian, 2015). The public hold the belief that banks have the responsibility of regulation and supervision of the economy, including corporate social responsibility situation (Cornett, Erhemjamts & Tehranian, 2015). It is corporations’ responsibility to implement some social investments for social sustainable development, and financial institutions should play the supervisor role to drive corporations performing their social responsibility. As mentioned above, financial institutions could provide direct statistics to show corporations’ financial situation. And this seems to offer all needs for becoming a supervisor. According to some researches, there is the relative ranking system to measure corporations’ social responsibility level in some countries’ central bank. This is part of the supervisor role for financial institutions in CSR management.

- Conclusion

This report demonstrates different roles that financial institutions play in the corporate social responsibility promotion. In the first place, financial institutions make great efforts in corporation social responsibility promotion, which is regarded as the main role in the process. Meanwhile, financial institutions play the role of gathering and providing financial information as well. Last but not least, for the social sustainable development, financial institutions also have the responsibility to supervise the corporation social responsibility development. All these arguments demonstrate the close relationship between CSR and financial institutions.

However, what financial institutions could do to promote CSR is not only this, there are several roles missing because of the lack of relative information.

- Reference

Cornett, M.M., Erhemjamts, Q., & Tehranian, H. (2015). Journal of Banking & Finance. Greed or good deeds: An examination of the relation between corporate social responsibility and the financial performance of U.S. commercial banks around the financial crisis, Volume 70, September 2016, Pages 137–159.

Hunnicutt, S. (2009). Corporate Social Responsibility. Detroit: Greenhaven, 2009. Print. Opposing Viewpoints Ser. (Unnumbered).

M. Friedman, Capitalism and Freedom (Chicago: University of Chicago Press, 1962); and M. Friedman, ‘The social responsibility of business is to increase profits’, The New York Times Magazine, 13 September 1970, p. 33.

Publishing, OECD. (2001). Corporate Social Responsibility Partners for Progress. Paris: Organisation for Economic Co-operation and Development, 2001. Print. Governance (Paris, France).

Robbins, S., Bergman, R., Stagg, I., & Coulter, M.K. (2015). Management (7th ed.). Melbourne, Victoria: Pearson Australia.