Stakeholders' interaction in corporate social responsibility disclosure practice: evidence from UK financial sector and their customers

Abeer Hassan, Gemma Kidd

Research output: Contribution to conferencePaperpeer-review

Abstract

Won best conference paper award.

Abstract: Previous literature concerning stakeholder engagement is split into two groups. The first group focused on stakeholders’ engagement from companies’ perspective, looking at how the strategic management of companies can be influenced by stakeholders’ involvement (Ditlev-Simonsen and Midttun, 2011; Gallego-Alvarez et.al. 2009). The second group concentrated on stakeholders’ engagement from stakeholders’ perspective (Bhattacharya, et al., 2009; Flammer, 2012). However, there is very little research into the effectiveness of stakeholder engagement from both stakeholders’ and companies’ perspective. This study covers this gap by investigating stakeholders’ engagement from both banks and stakeholders’ point of view, with the focus on customers as one of the main stakeholders. Therefore, the main aim of this study is to assess the extent to which UK’s ‘Big 4’ banks are utilising the benefits of customer engagement. To achieve this aim, the study adopts two-stage methodology. In the first stage, the researchers examine the UK’s ‘Big 4’ banks’ reports for 2007, 2009 and 2012 to measure the level of CSR disclosure based on four categories (Corporate Governance, Credibility, environmental performance and stakeholders’ engagement). In the second stage, a survey is conducted with 220 customers of the UK’s ‘Big 4’ banks to examine customers’ attitude towards CSR and media reporting preferences.

The results of investigating the four categories of CSR disclosure of UK’s ‘Big 4’ banks are as follows: For both Corporate Governance and stakeholders’ engagement, the results show that there is an increase in the amount of disclosure provided by banks on these categories, suggesting that UK banks are increasingly becoming aware of the importance of providing disclosure on both categories in their reports. For both credibility and environmental performance, the results show that level of disclosure is low in 2009 comparing with 2007 and 2012, suggesting that during financial crisis, UK banks were not focusing on CSR disclosure.

The results of the customer survey show that there is an overall high positive attitude towards CSR. This may be perhaps due to the growing attention towards CSR. When the relationships between Customers’ education and (1) Attitude to CSR; (2) Media Sources for CSR Reporting are measured, the results show that there is significant relationship between customer education and both attitude and media sources reporting preferences. This supports the idea that customers’ attitude towards CSR and their reporting preferences for CSR are dependent on their level of education. When the relationships between Customers’ Occupation and (1) Attitude to CSR; (2) Media Sources for CSR Reporting are measured, the results only show a significant relationship between Customers’ Occupation and Attitude to CSR. However, when the relationships between Customers’ Age (customers’ occupation) and (1) Attitude to CSR; (2) Media Sources for CSR Reporting are measured, the results show that there is no significant relationship between customer age (customer occupation) and both customers’ attitude and media reporting preferences.


Keywords: CSR, Financial sector, customer engagement


Original languageEnglish
Publication statusPublished - 2015
Event1st Cairo University International Conference on Accounting - Marriott Hotel, Cairo, Egypt
Duration: 12 Sep 201513 Sep 2015
http://cuica2015.foc.cu.edu.eg/

Conference

Conference1st Cairo University International Conference on Accounting
Abbreviated titleCUICA
Country/TerritoryEgypt
CityCairo
Period12/09/1513/09/15
Internet address

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