CORPORATE SOCIAL RESPONSIBILITY (CSR) OF BANKING SECTOR IN SRI LANKA
Today the banking industry is concerned as one of the key contributing sector behind economic stability and growth. Therefore stakeholders have high expectations on the responsible behaviour of banks.
CSR is concerned with treating the stakeholders who
are existing both within a firm and ethically or in a socially responsible
manner. Social responsibility aims to create a higher and higher standard of
living while preserving the profitability of the firm (Hopkins, 2007).
CSR is an evolving
business practice that incorporates sustainable development into a company's
business model. It has a positive impact on social, economic and environmental
factors (Schooley, 2019).
According to Murphy
(2019) Companies are increasingly ramping up their focus on Corporate Social
Responsibility to get the following benefits.
Engaging Customers
Implement socially
responsible policies is important to attract new customers as well as retain
existing customers and ultimately it is essential for long term success of the
organization. Eg: Banks can disburse the loan to entrepreneurs to enhance their
businesses.
Retaining Top Talent
Socially
responsible companies tend to attract employees who are eager to make a
difference in the world. A pool of top talented employees increase workplace
morale and boost productivity and direct the company to achieve substantial
results.
Brand image
The world’s largest
companies spend billions of marketing dollars each year to improve the way
customers think about them. There’s no faster way to do that in a memorable and
lasting fashion than to be seen as a company with a social conscience.
Helping Companies stand out from the Competition
Community-oriented
companies often gain a competitive advantage over others by attracting
customers toward their business with the help of CSR projects.
Serve the Bottom Line
Socially
responsible companies cultivate positive brand recognition, increase customer
loyalty, and attract top-tier employees. These elements are key to achieving
increased profitability and long-term financial success.
Corporate Social Responsibility in the Banking Sector in Sri Lanka
It is important to note that corporate
sustainability for banks is much more than mere charity. In this context, banks
are encouraged to improve the future of the people in all communities they
operate through CSR programs, which in turn will sustain their business in the
future.
Today, banks
operate in a market including groups who are not yet fully integrated with
society, and not dealing with banks such as low-income families and
micro-businesses operating in poor areas of the country. Therefore banks need
to introduce a new range of products targeting new customer segments. This
situation represents banks a challenge in terms of designing suitable products
for these distinct segments, and the opportunity to develop a new type of
business benefits to all.
As the team at
Sampath Bank always strives to ensure that the activities are in concurrence
towards the needs of the society and well-being of the country. ‘Sampath
Saviya’, is an entrepreneurship development programme, launched by Sampath Bank
PLC to empower and uplift the livelihood of Micro, Small and Medium
entrepreneurs in Sri Lanka (Sampath Bank PLC, 2019). The programme offers technical and financial
assistance for start-ups as well as existing business ventures that lack
necessary and vital resources to begin and expand their businesses.
References
Hopkins, , 2007. Corporate Social Responsibility
and International Development: Is Business the solution ? London:
Earthscan.
Murphy , C.B.,
2019. Why Social Responsibility Is Important to Businesses. [Online]
Investopedia Available at: https://www.investopedia.com/ask/answers/041015/why-social-responsibility-important-business.asp
[Accessed 01 October 2019].
Sampath Bank PLC, 2019.
www.sampath.lk. [Online] Available at: https://www.sampath.lk/en/news/entry/267-sampath-saviya
[Accessed 01 October 2019].
Schooley, S.,
2019. What Is Corporate Social Responsibility? [Online] Business News
Daily Available at: https://www.businessnewsdaily.com/4679-corporate-social-responsibility.html
[Accessed 01 October 2019].
good explain nethra. we can get knowledge about CSR OF BANKING SECTOR IN SRI LANKA. Thanks for sharing your knowledge.
ReplyDeleteCompany use the CSR one of their marketing strategy too, there are many advantages and disadvantages to the company as well as society, Thank for shearing your knowledge.
ReplyDeleteGood work ,problem is are we maintaing it in our practical scenario?.
ReplyDeletemost of the companies are not doing CSR sustainly, that not good,you get some kind of publicity as well as some tax reductions through effective CSR programmes.
You stated that corporate sustainability for banks is much more than mere charity. In this context, banks are encouraged to improve the future of the people in all communities they operate through CSR programs, which in turn will sustain their business in the future.Yes we have to help the society.Good work Nethra.
ReplyDeleteIt is important to show the organizational interest towards the community and to the stakeholders where you automatically promote the company brand. This lead an organisation to be strong and fit in the competition. Nicely explained Nethra.
ReplyDeleteGood article and attractively presented. Banks made significant steps to fulfill their corporate responsibilities to their stakeholders. We have seen many CSR activities among the banks in Srilanka and the mentioned activity from Sampath bank is one of the good examples. Thanks for sharing.
ReplyDeleteSupper stuff Nethra. You have shown us how the Banking sector work on CSR activities. As you mentioned all the stakeholders are very concern on how it drive any organization and what sort of community work being done from the organization. Thanks for sharing your knowledge with us
ReplyDeleteCSR project is most important nowadays than history. Environment is polluted by human being and its destroying drastically. This is good initiative. Thanks for sharing.
ReplyDeleteCSR has a positive impact on social, economic and environmental factors. Even NDB bank conducts CSR project in every year in different themes like social, environment etc. It is a very important side for all the organization to be looked at and involved with.
ReplyDelete