THE STRATEGIC IMPORTANCE OF CORPORATE SOCIAL RESPONSIBILITY IN BANK MANAGEMENT

Abstract

This article examines the role of corporate social responsibility (CSR) in today's Ukrainian banking sector in the context of significant challenges such as data privacy breaches and lack of financial transparency. The author emphasizes the importance of CSR as a decisive factor for success, which contributes to increasing competitiveness by improving reputation, developing loyalty of customers and partners, and attracting talented employees. It also helps reduce risks through better management of the social and environmental aspects of operations and contributes to the sustainable development of society and the solution of pressing social problems. Despite the potential benefits, the implementation of CSR in Ukraine remains at an early stage due to a number of reasons, including insufficient understanding of its essence by bank management, lack of proper regulation and effective incentives, as well as limited influence of state institutions and low level of involvement of stakeholders. Modern Ukrainian banks must bear responsibility not only for financial activity, but also for social impact. The study advocates the implementation of CSR practices to reduce risks, promote sustainable development, and address pressing social issues. Fulfilling social and environmental obligations involves a wide range of measures, from compliance with the law to the implementation of ethical practices and funding of social projects. In addition, the article emphasizes the role of the ISO 26000 standard as a basis for ethical business behavior and emphasizes the importance of non-financial reporting in assessing the social and environmental impact of banks. Non-financial statements published in accordance with this standard include an overview of the bank's impact on the environment, social capital and economic development. In conclusion, the article recommends strategies for Ukrainian banks to prioritize CSR initiatives, including the fight against money laundering and corruption, to increase transparency and accountability.