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Bank CSR Engagement, Institutional Environments, and Corruption

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International Journal of Finance & Economics

Published online on

Abstract

["International Journal of Finance &Economics, Volume 31, Issue 3, Page 4091-4110, July 2026. ", "\nABSTRACT\nThis study examines the effect of bank engagement in corporate social responsibility (CSR) on corruption across 39 countries from 2002 to 2021. We build on the view that CSR enables banks to act as active agents influencing national corruption, rather than passive agents of institutional norms. Our results indicate that stronger bank CSR significantly reduces corruption, with robust findings across measures and specifications. CSR mitigates corruption through enhanced regulatory compliance, stakeholder protection, governance diversity, and improved information flows. It also complements formal institutions and informal societal norms, highlighting the potential of embedding CSR into banking regulation to advance both anti‐corruption and financial stability.\n"]