Corporate social responsibility practices in the Lebanese banking sector: a reality or a Myth?

Abstract

Purpose – The purpose of this research is to study the difference between the CSR reporting and the CSR execution in the Lebanese banking sector specially during the current financial crisis and lack of trust between the customers and the banks‟ administration as a whole. Design/methodology/approach – To proceed with this study, we used the quantitative method by extracting data and information for 13 Lebanese banks and calculating the sovereign exposure debt of all these banks separately and comparing them to their disclosed CSR practices. Findings – Our research showed that not all CSR actions are being reported, in addition not all CSR reporting are being executed and we also found that within the sample of 13 banks we studied, only three banks were compliant with the accepted sovereign debt ratio of Basel based on standard approach. Research limitations/implications – It is to mention that when performing our study, we faced a problem in the data collection since CSR reporting was not up to date, when available, and was dated back to December 2018. Practical implications – This study highlighted for the depositors the practices banks are implementing on their funds, and the discrepancies between the disclosed practices and the exercise of CSR in terms of critical exposure. Originality/value – This research is one of the first studies conducted during the economic and financial crises Lebanon is facing; the study allowed us to measure in numbers the CSR execution within the Lebanese banking sector and it can be considered as a steppingstone for more advances studies.