The relation between the CSR and the accounting information system data – the evidence of the Polish financial institutions

Justyna Fijałkowska , Beata Zyznarska-Dworczak , Przemysław Garsztka

Abstract

Idea: Financial institutions play a fundamental role in determining the sustainability of modern economies. However, the financial crises made many financial institutions lost their credibility. CSR engagement is perceived as a remedy. The aim of this paper is to analyse the interrelation between being socially responsible and tangible financial outcome of financial institutions in Poland. Data: Financial and market data of all the public companies from the financial sector in Poland – 116 financial institutions. The analysed period is 2012-2015 that gives 257 observations. Tools: The empirical part analyses the CSR with CFP interrelations using Spearman's rank correlation coefficient, logit regression and Two-way Factorial ANOVA test. What’s new? The empirical results reveal that in case of financial institutions the slack resources are strongly related to CSR involvement, however being socially responsible is not reflected in the bottom line. Market and the public are reluctant in considering the CSR importance and the CSR engagement is not rewarded. This undermines the role of CSR commitment in financial institutions. It may be assumed that CSR efforts are not focused properly, or they are not communicated effectively. So what? The findings are important in better understanding of the link between CSR engagement and its tangible outcomes. The conclusions may lead to the improved decision-making processes concerning CSR activities and their communication. Contribution: This research contributes to the need for greater clarity and knowledge on the interrelations between CSR and CFP that may shed new light on the engagement and communication of CSR in financial institutions.