AND NON-EU COUNTRIES Brunilda Kosta
2.29. SOCIAL RESPONSIBILITY OF BANKS IN THE FUNCTION OF COMPARATIVE ADVANTAGE ON THE MARKET
Milica Raičević1
Faculty of Business Studies “Montenegro Business School”, Mediterranean University, Podgorica, Montenegro
Dijana Medenica Mitrović2
Faculty for Business Management Bar, Montenegro
OBJECTIVES
The business operation of companies is not perceived any more in terms of profitable operations, but also in terms of whether it is beneficial for the society. Social responsibility contributes to improving relationships with key stakeholders, thus contributing to the long-term sustainability of the company. The paper points out to the positive link between corporate social responsibility (CSR) and the reputation of the bank. The aim is to point out that profit and CSR are not opposed categories and that the CSR of banks represents a strong comparative advantage on the market.
METHODOLOGY
The paper gives a theoretical and practical overview of the concept of corporate social responsibility (CSR), with a focus on the banking sector. In the theoretical part, the term CSR is defined, as well as its significance and special features regarding the application in the banking sector. The empirical part deals with the study of the characteristics of the Montenegrin banking sector, its characteristics in terms of CSR. The empirical part includes the qualitative analysis, based on the data available on the official sites of banks operating in Montenegro. Based on the collected Internet data, an analysis of the factual situation will be carried out, conclusions will be drawn and recommendations made for the implementation of the CSR concept with a view of improving the competitive position of banks on the market. Through qualitative analysis of the available data, the advantages and disadvantages of corporate social responsibility of banks in Montenegro will be
1 Msc, e-mail: [email protected] 2 PhD, Associate Professor, e-mail: [email protected]
considered, as well as which CSR activities are most represented and which still have the capacity to be improved and involved in the marketing strategies of the banks operating in this region.
RESULTS
CSR activities are often seen as non-profitable and impractical. In recent years, the CSR activities in the banking sector have a tendency of growth, which is significant for the Montenegrin economy and society. Banks carry out their CSR activities in the fields of education, health, culture, sports, etc. The CSR of banks represents a strong comparative advantage on the market and the banks which implement it (especially foreign ones) send their clients a clear message that they are ready to stay and actively engage in problem solving at the local and national level.
IMPLICATIONS
The contribution of the paper is reflected in providing the cross-section of the activities and areas obtained through the qualitative analysis where the CSR activities of banks in Montenegro are present. The paper will define what characterizes the CSR of banks in Montenegro, what are the advantages and disadvantages of the past CSR practice of banks, and in which direction the CSR activities of banks should be improved. The contribution of the paper is reflected in how many CSR activities have an impact on the reputation and generation of higher profits of certain banks in Montenegro.
ORIGINALITY VALUE
The paper will provide an overview of CSR activities that can help decision-makers in the marketing sector of banks to use CSR as one of the levers to achieve comparative advantage on the market. The contribution will also be made through the qualitative analysis of available data on the activities and their presence in certain Montenegrin banks, what characterizes them, and what are the advantages and disadvantages of the past CSR practice. The recommendations will be provided regarding what can be improved, which would have an impact on the reputation and generation of higher profit.
KEY WORDS
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