Study on the strategic influence of corporate social responsibility in the world's most digitised banks

Abstract

Spanish banking is one of the most digitised at international level, according to Deloitte. Given the changes implied by digitalisation in the value chain, this research studies the specific case of the impact of CSR (Corporate Social Responsibility) on banking and share prices. For that, this work is an analysis of its impact quantitatively, through the banking companies analyzed in the Spanish MERCO Responsibility ESG (Environmental, Social & Governance) and their share price in the Madrid Stock Market for said companies from 2011 to 2019. These parameters are compared with regressive, autoregressive, and moving average econometrical methods overtime to reach a conclusion on the impact of CSR on the share value during a digital transformation process. Results reveal that there is a directly relationship between corporate social responsibility and the share price measured by the MERCO ESG Ranking in the banking sector in Spain. In view of that, this work aims to demonstrate that CSR proves to be a value that shareholders can trust over time, even though the company may be going through a period of digital transformation.

Keywords

• Digitalisation
• Transformation
• CSR
• ESG
• Banking sector
• Strategy