Corporate social responsibility in the banking sector: a focus on Latin America and the Caribbean

Corporate social responsibility (CSR) is positioned globally as a strategic set of tools that enable firms to generate positive and enduring impacts on society, strengthening reputation and stakeholder relationships through good business practices. In Central America, CSR has increasingly been institutionalized as a business strategy, linked to stable performance and profitability. The banking sector, in particular, is among those with the greatest CSR investment, aiming to enhance image, reputation, and business ethics. Classical and contemporary CSR perspectives (e.g., Bowen; Carroll) emphasize managerial responsibilities toward societal interests and the risks of failing to meet social expectations, underscoring integrity and ethical consistency in corporate conduct. Against this backdrop, the study addresses the problem: what CSR actions are implemented in the banking sector in Latin America and the Caribbean? The purpose is to analyze CSR actions in Bancolombia (Colombia), Banco de Crédito e Inversiones (Chile), and Banco General (Panama) and to identify their CSR dimensions through an analysis of company annual reports. The study is justified by contributing to the CSR theoretical framework applied to leading banking entities ranked first in the Merco CSR ranking, informing strategic corporate reorganization and targeted CSR actions in the banking business.

CSR is commonly defined as the set of economic, legal, ethical, and philanthropic expectations society holds of companies. In banking, CSR requires heightened specialization and professionalization, strong adherence to codes of ethics, competency verification, and transparency. CSR links ethical values with corporate responsibilities and stakeholder relations, aiding risk management and decision-making and supporting competitive advantage through strategic policies and practices that demonstrate community commitment. CSR entails recognition and mitigation of social and environmental risks from operations and encompasses practices and strategies for sustainable development. The Sanchis and Rodríguez model frames CSR in banking around Socially Responsible Investment (SRI), which incorporates ESG criteria alongside safety, liquidity, and profitability, and distinguishes internal and external dimensions. The internal dimension concerns conscious, prudent investment with attention to stakeholders (partners, customers, shareholders, employees, suppliers). The external dimension channels resources to ESG-related objectives, often yielding greater indirect impact and value in CSR by promoting regional or national development. Prior empirical work includes: (1) Mita et al. (2018) on 77 ASEAN-5 banks (2014), finding Thailand highest in CSR; (2) Fukuyama and Tan (2021) on 72 Chinese banks (2007–2017), showing differences between donation volumes and green loans and noting greater gains from improved technical efficiency than allocation improvements; (3) Idowu (2014) on six Nigerian banks (2011), finding ~3% of after-tax income allocated to CSR activities; (4) Sarro et al. (2007) on Spanish banks and savings banks, confirming CSR’s expansion and role in sustainable development and risk management; (5) Ashraf et al. (2017) showing a positive, significant impact of CSR on banks’ financial performance in Asia; (6) Vo et al. (2020) in Vietnam highlighting philanthropic CSR as most recognized and linked to customer loyalty; (7) Gallego et al. (2021) in Europe showing alignment with SDGs (notably Goals 11 and 13) and links to board gender diversity; (8) Lentner et al. (2017) emphasizing economic, legal, and ethical CSR levels supporting financial stability. Collectively, literature situates banking CSR within strategic, stakeholder-centric practice, with SRI/ESG as core and both internal and external dimensions salient.

Qualitative, cross-sectional, non-experimental design using documentary analysis. The unit of analysis comprises three banks ranked first in CSR within their countries by the Merco Ranking: Bancolombia (Colombia), Banco de Crédito e Inversiones (Chile), and Banco General (Panama). Merco applies a multistakeholder methodology with six evaluations and 20+ information sources and is internationally audited. Inclusion criterion: countries where a national bank held first place in CSR in 2021. Exclusion criterion: entities not in the banking sector or outside the 2021 period. Data were sourced from official bank websites and 2021 annual/integrated/CSR reports, guided by a documentary review instrument focused on CSR indicators per Sanchis and Rodríguez (internal and external dimensions). Data collection involved statistical and descriptive extraction from the reports. Analysis used data reduction procedures (separation, identification, classification, grouping) to synthesize CSR actions and indicator compliance across internal and external dimensions.

- Across the three banks, internal-dimension CSR actions are prominent, especially equitable wages and job quality. Aggregate emphasis includes 26% on equitable salaries and 28% on job quality (internal). External-dimension actions emphasize responsible investment (25%). - Bancolombia (Internal): Equitable wages 26%; job quality and egalitarian factors 21%; fair workload distribution 20%; ethical supply management 19%; offer of ethical/solidarity products 10%; internal democracy/transparency 4%. (External): Potentiation of responsible investment 25%; quality financial placement 21%; integrated impact assessment systems 20%; sustainability in product design 17%; fight against money laundering 10%; transparency/accountability 7%. - Banco de Crédito e Inversiones (Internal): Job quality and egalitarian factors 28%; equitable wages 18%; internal democracy/transparency 17%; ethical supply management 15%; fair workload distribution 14%; offer of ethical/solidarity products 8%. (External): Potentiation of responsible investment 25%; quality financial placement 21%; transparency/accountability 16%; sustainability in product design 15%; integrated impact assessment systems 13%; fight against money laundering 10%. - Banco General (Internal): Equitable wages 26%; job quality and egalitarian factors 21%; fair workload distribution 20%; ethical supply management 19%; offer of ethical/solidarity products 10%; internal democracy/transparency 4%. (External): Potentiation of responsible investment 25%; quality financial placement 21%; integrated impact assessment systems 20%; sustainability in product design 17%; fight against money laundering 10%; transparency/accountability 7%. - CSR resources in 2021 were directed toward business sustainability, enhancing employee stability and satisfaction, and advancing responsible investment with attention to social, economic, and environmental impacts. Externally oriented CSR activities show notable importance through investments in employee training/development, contributions to local/regional economic development via job creation, and environmental outcomes (emissions reduction, conservation, environmental education).

Findings indicate that leading banks in Colombia, Chile, and Panama maintain a stable, strategic CSR commitment spanning stakeholder protection, community initiatives, and environmental impact. Internal CSR emphasizes equitable compensation, work quality, and fair workload distribution—foundational for employee satisfaction and organizational performance. External CSR, consistently led by responsible investment (25%), aligns capital allocation with ESG criteria, reinforcing banks’ intermediary role in supporting sustainable economic development. The results cohere with prior literature linking CSR to ethical, legal, and economic responsibilities; transparency and disclosure as mechanisms for improvement; positive community impacts from philanthropic actions; and the sector’s capacity to drive sustainability agendas (e.g., SDGs). The prominence of responsible investment reflects integration of ESG into product design, impact assessment, and credit allocation, supporting customer trust, loyalty, and reputation while mitigating negative societal impacts. Overall, the observed CSR actions directly address the research question by detailing the internal (wages, job quality, governance) and external (SRI, anti–money laundering, transparency) activities prioritized by top-ranked banks in Latin America and the Caribbean.

The study concludes that the most relevant CSR actions in the examined Latin American and Caribbean banks center on employee stability and satisfaction: equitable, non-discriminatory remuneration; optimal working conditions that reduce safety and health risks; and fair workload distribution aligned with organizational demands. Complementarily, responsible investment actions assess and manage social, economic, and environmental impacts, including community-focused financial collaboration, investment in clean energy under environmental sustainability principles, and the exclusion of investments in corporations linked to addictive habits. Together, these internal and external CSR actions underpin business sustainability and responsible banking practices. Future research should broaden the dimensions analyzed (e.g., incorporate financial performance and corporate reputation) and expand geographic and sectoral coverage across Latin America to enrich understanding of CSR’s impacts.

Data collection relied on 2021 corporate annual/CSR reports because interviews with experts and managers were difficult to complete due to Covid-19–related constraints and scheduling. This limits triangulation with primary qualitative insights. The study suggests expanding dimensions to include financial performance and corporate reputation, and extending the analysis across Latin America for comprehensive coverage.