Can CSR in banking reduce corruption?

Bitar, Mohammad; Obeid, Hassain; El Ouadghiri , Imane; Peillex, Jonathan

Abstract

This study examines the impact of bank involvement in corporate social responsibility (CSR) on corruption. Using a sample of banks from 40 countries, the results show that CSR initiatives significantly reduce corruption, with consistent findings across tests. Mechanism analysis reveals that CSR mitigates corruption by strengthening regulatory frameworks, improving stakeholder protection, diversifying resources, and enhancing transparency. These findings emphasize the importance of integrating CSR into banking strategies and regulatory requirements to address social and environmental priorities and combat corruption.

Citation

Bitar, M., Obeid, H., El Ouadghiri, I., & Peillex, J. (2025). Can CSR in banking reduce corruption?. Finance Research Letters, 85(Part A), Article 107939. https://doi.org/10.1016/j.frl.2025.107939

• Journal Article Type: Article
• Acceptance Date: Jul 8, 2025
• Online Publication Date: Jul 11, 2025
• Publication Date: 2025-11
• Deposit Date: Jul 25, 2025
• Publicly Available Date: Jul 12, 2026
• Journal: Finance Research Letters
• Print ISSN: 1544-6123
• Electronic ISSN: 1544-6123
• Publisher: Elsevier
• Peer Reviewed: Peer Reviewed
• Volume: 85
• Issue: Part A
• Article Number: 107939
• DOI: https://doi.org/10.1016/j.frl.2025.107939
• Keywords: CSR; bank externalities; corruption; stakeholders; resource diversity; transparency 2
• Public URL: https://nottingham-repository.worktribe.com/output/51896127
• Publisher URL: https://www.sciencedirect.com/science/article/abs/pii/S1544612325011973