Title: A literature outlook on the impacts of corporate social responsibility on sustainable banking operation

Authors: Erleta Halimi; Katalin Czako; Arben Sahiti

Addresses: Doctoral School of Regional and Business Administration Sciences, Széchenyi István University, Egyetem Ter 1, Gyor, 9026, Hungary ' Doctoral School of Regional and Business Administration Sciences, Széchenyi István University, Egyetem Ter 1, Gyor, 9026, Hungary ' Department of Finance and Applied Accounting, University Kadri Zeka, Zija Shemsiu pn, Gjilan, 60000, Kosovo

Abstract: Corporate social responsibility (CSR) has become essential in banking as stakeholders demand greater sustainability, transparency, and ethical governance. This paper provides a structured review of studies from 2014-2024, examining the relationship between CSR initiatives and banks' financial performance. The review highlights that CSR practices such as green banking, responsible lending, ethical investment strategies, and sustainability reporting can enhance profitability, reputation, and stakeholder trust though results vary across contexts. While many studies find a positive relationship between CSR and financial performance, others report negative or neutral effects, depending on bank size, institutional stability, cultural context, and the specific CSR dimensions pursued. Guided by stakeholder, legitimacy, resource-based, and reputation theories, the review develops an integrated conceptual framework and offers policy insights for banks and regulators. It also identifies research gaps, particularly the potential of emerging technologies like blockchain and artificial intelligence to strengthen ESG risk assessment and financial inclusion. Overall, CSR remains a key but context-dependent driver of sustainable banking.

Keywords: corporate social responsibility; CSR; banks; financial performance.

DOI: 10.1504/IJGE.2025.151327

International Journal of Green Economics, 2025 Vol.19 No.4, pp.429 - 447

Received: 09 Apr 2025
Accepted: 28 Sep 2025
Published online: 23 Jan 2026 *

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