A Comparative Analysis of Corporate Social Responsibility Practices in the Banking Industry: The Case of Ghana and China

Abstract

Corporate Social Responsibility has become the norm and among the well accepted practices of organizations in the 21st Century. Even though it is not mandatory in most countries, the society has made it morally unacceptable for institutions to overlook these aspect of their operation. However, despite the acceptance in developed economies, organizations in developing economies are yet to come into terms Corporate Social Responsibility, what really it entails and the best practices. The issue of contention has been if they (the organizations) are mandated to contribute their quota to the growth of the economy by job creation, payment of taxes and other levies to the government (which is meant for this purpose), why should they further burden their organizations with other practices such as CSR. This study juxtaposes the practices of CSR in some selected banks in two developing economies namely Ghana and China, to determine the Corporate Social Responsibility practiced. The selected banks are considered very key as their activities cover the area of agriculture and other sensitive parts of their economy. Two banks were examined from each country to ascertain the similarities and differences of their practices of CSR. Secondary data from the banks website and Social Responsibility Report were examined and compared. The analysis supports that corporate social responsibility has a positive effect on the society and ensures sustainability of the banks in the long run. It enlightens the stakeholders on the practices of these banks and also provides best direction for the Ghanaian Banks on the current trend of CSR.