Can CSR in banking reduce corruption?

Mohammad Bitar, Hassan Obeid, Imane El Ouadghiri and Jonathan Peillex ()
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Mohammad Bitar: Nottingham University Business School [Nottingham]
Hassan Obeid: PSB - Paris School of Business - HESAM - HESAM Université - Communauté d'universités et d'établissements Hautes écoles Sorbonne Arts et métiers université
Imane El Ouadghiri: PULV - Pôle Universitaire Léonard de Vinci
Jonathan Peillex: ICD International Business School Paris, LEFMI - Laboratoire d’Économie, Finance, Management et Innovation - UR UPJV 4286 - UPJV - Université de Picardie Jules Verne

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Abstract: This study examines the impact of bank involvement in corporate social responsibility (CSR) on corruption. Using a sample of banks from 40 countries, the results show that CSR initiatives significantly reduce corruption, with consistent findings across tests. Mechanism analysis reveals that CSR mitigates corruption by strengthening regulatory frameworks, improving stakeholder protection, diversifying resources, and enhancing transparency. These findings emphasize the importance of integrating CSR into banking strategies and regulatory requirements to address social and environmental priorities and combat corruption.

Keywords: Transparency; Resource diversity; Stakeholders; Corruption; Bank externalities; CSR (search for similar items in EconPapers)
Date: 2025-11
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Published in Finance Research Letters, 2025, 85, pp.107939. ⟨10.1016/j.frl.2025.107939⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-05239280

DOI: 10.1016/j.frl.2025.107939

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