A Dynamic Analysis of Banks’ Behaviour Towards Corporate Social Responsibility Reporting

Liliana Donath, Gabriela Mircea, Mihaela Neamțu, Grațiela Georgiana Noja () and Nicoleta Sîrghi
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Liliana Donath: Department of Finance, Information Systems and Modelling for Business, Faculty of Economics and Business Administration, West University of Timisoara, 16 J.H. Pestalozzi Street, 300115 Timisoara, Romania
Gabriela Mircea: Department of Finance, Information Systems and Modelling for Business, Faculty of Economics and Business Administration, West University of Timisoara, 16 J.H. Pestalozzi Street, 300115 Timisoara, Romania
Mihaela Neamțu: Department of Finance, Information Systems and Modelling for Business, Faculty of Economics and Business Administration, West University of Timisoara, 16 J.H. Pestalozzi Street, 300115 Timisoara, Romania
Grațiela Georgiana Noja: Department of Marketing, International Business and Economics, Faculty of Economics and Business Administration, West University of Timisoara, 16 J.H. Pestalozzi Street, 300115 Timisoara, Romania
Nicoleta Sîrghi: Department of Marketing, International Business and Economics, Faculty of Economics and Business Administration, West University of Timisoara, 16 J.H. Pestalozzi Street, 300115 Timisoara, Romania

Mathematics, 2025, vol. 13, issue 16, 1-15

Abstract: Corporate Social Responsibility (CSR) actively enhances social, economic, and environmental well-being, increasingly impacting society. It plays a vital role in building a trustworthy and transparent image for the banking system’s relationship with the community. In this context, the paper aims to analyse the effects of delayed adaptation by the banking system to reporting requirements, as well as the reasons that may cause oscillating behaviour on their part. Accordingly, three scenarios are developed to describe the behaviour of banks that experience regular fluctuations in the level of external sustainability reporting requirements, meaning the pressure to comply with these requirements may vary over time. The research method employed involves a dynamic analysis, utilising a mathematical model described by a nonlinear system with time delay. The goal of the research is to identify the equilibrium point of the system and analyse its asymptotic stability. Moreover, the critical time delay is provided, beyond which banks’ responses become oscillatory rather than stable. Numerical simulations illustrate the theoretical findings and reveal a critical delay value under which banks can stabilise their resources to meet sustainability requirements.

Keywords: CSR reporting; balance point; oscillating behaviour; stability; mathematical model; sustainability in the banking system (search for similar items in EconPapers)
JEL-codes: C (search for similar items in EconPapers)
Date: 2025
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