AGEFI Luxembourg – Le 16 juin 2019 :
When are banks socially responsible?
A socially responsible and sustainable bank is aware of the impact of its activities on society and acts accordingly. The impact of the banks on the stability of the economy requires integrity and due diligence including:
• Managing activity-based risks and setting up mitigation actions;
• Promoting transparency towards customers and stakeholders about its operational management and the products offered;
• Acting as engine of the economy, by e.g. providing loans and giving advice to new start-ups.
Within corporate social responsibility, 4 types can be distinguished: direct philanthropic giving such as donation; environmentally sustainable initiatives such as reducing carbon footprint; and the last 2 such as ethical business practices and focus on economical responsibility which will be described more into detail in this article.