Methodological aspects of evaluation of bank's corporate social responsibility | Bankas korporatīvās sociālās atbildības novērtēšanas metodoloģiskie aspekti
2012
Balgalve, I., Latvia Univ. of Agriculture, Jelgava (Latvia). Faculty of Social Sciences | Korpa, V., Latvia Univ. of Agriculture, Jelgava (Latvia). Faculty of Social Sciences
There are several definitions of corporate social responsibility, but the common idea could be that corporate social responsibility is an organizations’ response the processes and problems of society, and the organization must take an active role in solving them. Corporate social responsibility is a part of an organization’s business strategy, and as any strategy also the strategy of corporate social responsibility must be evaluated, so the organization can achieve the desired results. The aim of this article is to introduce an evaluation model of a bank’s corporate social responsibility. A bank has a dual nature – it is not only bureaucratic organization, it is also oriented to its clients. The bank’s interest is not only to get more clients but also to form long lasting relationships in order to survive and be successful. The bank as an organization is not isolated from the institutional environment; it must have feedback with its external and internal stakeholders. Therefore banks have to answer to the pressures and expectations of its stakeholders and the institutional environment. The elaborated model leans on these assumptions of the Stakeholders approach and Institutional theory and consists of three levels: the principles of social responsibility; the processes of social responsibility; results and how they refer to relationships between organizations and society. The first level includes the institutional basis of an organization’s corporate social responsibility: the legal framework, the organization’s definition of public responsibility and leadership. The second level includes the scanning of the business environment and the organization’s ability to respond to social pressure. The third level includes the evaluation of social impact. The main idea of this evaluation model is to define the criteria with which organizations can measure their activities and conclude how they can evaluate and improve their desired results and organizational principles.
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