The assessment of corporate social responsibility at Ukrainian banks

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Corporate social responsibility issues are becoming increasingly important in the banking sector. It refers to the responsibility of banks for their business activities subject to conceivable implications for society and the environment. Currently, the modern banking system in Ukraine is in the process of shaping its own model and integrating corporate social responsibility into all business processes. Thus, it is argued that objective comprehensive assessment of corporate social responsibility of Ukrainian banks is an essential prerequisite to enhance their performance, along with building a good rapport with clients and encouraging trust in society. From the above perspective, this article suggests an approach to assess corporate social responsibility at banks which entails implementing consistent stages in evaluating the development degree of the three corporate social responsibility components: social, environmental and economic. The assessment framework substantiates a set of indicators for measuring the degree of corporate social responsibility at banks by estimating the ratio of the GRI related aspects in the financial statements of banks, and identifying the possibility to implement the main provisions of the Social Accountability International 8,000 standard and the GRI G4 (Global Reporting Initiative). The proposed approach to measuring corporate social responsibility in banking through the instruments of a three-dimensional matrix and to positioning the banks by the areas of their corporate social responsibility has been tested by processing an array of 82 non-financial reports of 31 banks over the 2016–2018 period.

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    • Figure 1. Sector analysis of website transparency of the 100 biggest Ukrainian companies by tax contribution
    • Figure 2. The three-dimensional positioning matrix of bank’s corporate social responsibility
    • Figure 3. The Gibbs-Rosebom triangle of non-financial bank reporting in corporate social responsibility areas
    • Figure 4. A three-dimensional positioning matrix to evaluate the level of CSR development at banks
    • Figure 5. A three-dimensional matrix of corporate social responsibility areas for the TOP 20 banks operating in the territory of Ukraine, according to the Ranking 2018
    • Table 1. The correlation of bank non-financial statement components and the Global Reporting Initiative standards
    • Table 2. A breakdown of bank non-financial reports in the areas of corporate social responsibility
    • Table 3. Banks that have disclosed their non-financial reports for 2016–2018
    • Table A1. The results of the multivariate analysis on corporate social responsibility development level
    • Table B1. The results of the multivariate analysis on the level of development of particular aspects of corporate social responsibility in banks