Abstract:
In response to growing corporate power, corporate social responsibility (CSR) is increasing
public demand that businesses should demonstrate greater responsibility for managing their
impact on society beyond simply paying taxes and complying with regulations. Critical to this
debate are commercial banks, which through the action of lending, play a pivotal role in
society as financial intermediaries, and therefore, it is argued have an extraordinary potential
to further sustainability.
The thesis, a case study, examines the feasibility for incorporating CSR criteria as part of the
lending appraisal process at Barclays Bank. To begin, the thesis examines the literature on
CSR and assesses the theory, application and reliability of this new and growing financial risk
factor. For the methodology, the study adopts a process of engagement with a pre-selected
group of Barclay’s stakeholders to evaluate the issues key to the debate. Supporting this
process of stakeholder engagement, a wider secondary stakeholder group was surveyed to
assess the validity of Barclays’ stakeholder responses. To assist the research, an analytical
framework of the CSR appraisal process was constructed.
The results show correlation between the two stakeholder groups, illustrating not only the
objectivity of the stakeholders put forward by Barclays but also the degree of commonality on
societal and ethical issues amongst representatives from various organisations. The findings
further illustrate that banks are being driven to adopt CSR by a combination of risk factors.
Finally, the study puts forward recommendations on facilitating CSR for the lending appraisal
process. It draws upon new framework guidelines for CSR and existing environmental credit
risk polices and procedures, but in addition, presents new arguments that reflect the opinions
of the stakeholder process.
