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Name: Eric Leaw

Journal title: Corporate Social Responsibility in Commercial Banking - A CaseStudy from the Czech RepublicAuthor name Buriano!" Lenka# $aul%k &i'%

(ol) *# +ssue ,# arch ./,0

Corporate Social Responsibility in Commercial Banking - A Case Study from the

Czech Republic

1.1 Objectives

+t has becomes a highly typical need for integration of moral principles in the bankingbusiness) Corporate Social Responsibility has widely used in banking sector with the

ob1ecti!e to ma2imize the company positi!e impact and minimize the companynegati!e impact towards its stakeholders because banking sector in!ol!e in thetransaction of money which means this business sector re3uire a high !alue incredibility because money is the main ob1ect of transaction or business that in!ol!e

between the company and its stakeholders) 4herefore# to ha!e a positi!e imagetowards the company is !ery important because customers will choose a reliable andhas a good brand image bank instead of other competitors in the market) 4his researchhas to been done to find out or to study what is the relationship between CorporateSocial Responsibility and the commercial banks in Czech Republic and what has beendone by the selected banks of researcher) Researcher has used CSR inde2 as themeasurement to find the le!el of in!ol!ement of commercial banks in Corporate

Social Responsibility)

Methodology

2.1 Data Collection

+n collecting the data# most of the data was collected through using secondary datasuch as annual report of the company# theories# information and facts from published

1ournals by se!eral authors) 5ther than using secondary data# there are some primarydata such as 3uestionnaire through the employees of the selected commercial banks inorder to get more reliable and accurate information)

4here are four basic pillars of Corporate Social Responsibility Basic such asEconomy# En!ironment and Social Responsibility were e!aluated separately anddi!ided into eight main areas such as anagement of CSR# 6irect economic effectson a community# +ndirect economic effects on the community# 7uman Rights# Social$olicy# Employment# Consumer $rotection and En!ironmental $olicy)

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2.2 Research ocation

4he research location is based in Czech Republic# most of the data and informationwere collected through secondary data and it is mostly based on the data from theselected commercial banks annual reports that can easily obtain from the company8s

official websites and some pre!ious research that has been done by other researchers)7ence# there is no any specific location in doing this research)

!.1 "ummary

+n measuring the le!el of Corporate Social Responsibility of commercial banks inCzech Republic and there are four commercial banks has been selected in which are9esk" Spo'itelna# 9eskoslo!ensk" 5bchodn% Banka# :omer;n% Banka and # banking system is determined byfactors that significantly affect the business of commercial banks such as thecredibility of the banking sector? money as the business ob1ect and atypical structureof the balance sheet of commercial banks) 4hese factors are a main reason for strictregulation of the banking sector)

By using the CSR inde2# 9esk" Spo'itelna =CS> has the highest score in their CSRmanagement because this company has pro!ided a lot of information that theresearcher can use as an ample fact or information such as their special document ofstrategy for the period between ./,, to ./,@# a !ery detailed report of their CSR

program on their website and some successful CSR program that has been reported bythe media plus the CE5 of the company has been awarded se!eral times as the best

banker of the year in nomination of incenteums Bank of the ear) As for9eskoslo!ensk" 5bchodn% Banka =9S5B># this company has the second highest interms of their CSR management because this company has a !ery well-planned CSRstrategy in terms of $olicy of Sustainable 6e!elopment and has a !ery good strategyin terms of maintaining the relationship between their customers and the company byusing a standardised CSR measurement) 4hen# :omer;n% Banka =:B> is one the bestin maintaining the human rights) 4his company has practiced the human rights in anethical way which means the management will always gi!e a huge opportunity fortheir employees to perform their task in a comfortable way and :B top-management

belie!es that human rights are apply to the customers too because e!eryone has theirown rights no matter they are in!esting a huge or small amount of money in the bank)By practising human rights# it will be able to help the company to ha!e a better two-way communication between their stakeholders and increase the positi!e impacttowards the company) Lastly#

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other competitors in the market) As a result# the negati!e impact towards thiscompany is relati!ely higher than the others)Conclusion

+n conclusion# Corporate Social Responsibility =CSR> has become e2tremely

important element in banking sector because moral principles are !ery important inbanking sector as it in!ol!e money transaction in the carry out the business)

+n my opinion# the company can practice a strong CSR program by apply a suitablemarketing tools such as ad!ertising through tele!ision media because by doing this# itwill helps the company to increase their positi!e impact towards the company imageand allow a way of communication between the company and their stakeholders) 4hefirm can show what kind of CSR program that ha!e been done by the company) ore2ample# the commercial banks can donate some of the company profit to some Don-$rofit 5rganization in order to show others that the company cares about others andthe company itself did not focus on ma2imize their profit but use some of the profit to

help those who needed)