SOCIAL RESPONSIBILITY OF FINANCIAL INSTITUTIONS

 The Bank as a financial institution is closely linked with the socio-economic development of the country. The success and quality of its activities not only affects the development of companies and industries, but also significantly affects society, forming a certain attitude towards personal finance among citizens, creates a culture of budget planning, and affects the quality of life of people.

Example: The EBRD in Ukraine. The EBRD promotes private sector engagement in the development of key infrastructure in Ukraine and particularly in the port sector. The first project of this kind was a US$ 18 million investment in the Odessa-based Euroterminal – a so-called “dry port” facility, the logistics complex, owned by a British investor, for container handling in the area adjacent to the Odessa sea port.

Corporate social responsibility is a very broad concept. In general terms, it is doing business in which a company transforms economic, environmental and social risks into opportunities. Financial institutions have their own specifics, as well as energy and oil companies, etc. In the modern world, any large company uses attracted capital, the source of which is often financial institutions. Accordingly, we indirectly influence the social and environment and are responsible for this.

Benefits for companies from implementing corporate responsibility strategies include increased employee satisfaction, reduced turnover, and increased brand value. Companies that do not join the game miss out on business opportunities, lose competitive advantage, and lag behind in management. Without introducing CSR strategies, they, firstly, do not monitor and control the impact of their production on society and the environment, and secondly, they do not fully realize their economic potential.

Some types of social responsibility are legal in nature and are reflected in legislation. Among them:

• Providing quality services and products to consumers.
• Creation of legitimate jobs, official payroll, financial investment in employee development.
• Strict compliance with tax, labor, environmental and other laws.
• Operational efficiency (increasing the wealth of shareholders, creating and further increasing economic added value).
• Conducting business with ethical standards and social expectations.
• Contribution to the development of society through the implementation of social programs and projects (both individually and in partnership with other organizations).