DEVELOPMENT OF CORPORATE SOCIAL RESPONSIBILITY OF BANKS IN UKRAINE IN THE CONTEXT OF SUSTAINABLE DEVELOPMENT

Abstract

Banks are aware of the need to form such a management system that would be able not only to support their effectiveness in the short term, but also to ensure the stability and efficiency of its development in the long term. The article examines the activities of banks in the field of corporate social responsibility (CSR). CSR is considered not as separate programs of social and environmental direction, but as a tool for ensuring sustainable development. The purpose of the study is to generalize the directions of corporate social responsibility of banks in Ukraine, outline the best practices of CSR and identify the connection between their implementation and indicators of bank sustainability. To reach this aim the CSR of banks was divided into internal and external practices. It was determined that as of 2022, only three banks operating in Ukraine are participants in the Global Compact, and therefore have undertaken systematically work on the implementation of sustainable development goals. The indicators of the development of PJSC "PUMB" were analysed and it was established that the active position of the bank in the field of CSR is accompanied by the improvement of indicators of financial efficiency. Using the example of the largest Ukrainian banks, it is illustrated that activity in the field of CSR correlates with the growth of their reliability. Adherence to the principles of sustainable development is gradually becoming part of the banking strategies and corporate management of Ukrainian banks, which are increasingly actively implementing the concept of CSR. Formally measuring the benefits of CSR for banks in the short term is practically impossible and not advisable, since promoting sustainability is a "long game". An innovative tool that is used by banks in developed countries and should be used in Ukraine – loans linked to sustainable development (SLL) is presented. The number of employed migrants, the reduction of energy or water consumption by the company can be considered as an ESG benchmark. It is noted that the special role of CSR of banks will be manifested during the reconstruction of Ukraine after the war.