Can CSR in banking reduce corruption?

This study examines the impact of bank involvement in corporate social responsibility (CSR) on corruption. Using a sample of banks from 40 countries, the results show that CSR initiatives significantly reduce corruption, with consistent findings across tests. Mechanism analysis reveals that CSR mitigates corruption by strengthening regulatory frameworks, improving stakeholder protection, diversifying resources, and enhancing transparency. These findings emphasize the importance of integrating CSR into banking strategies and regulatory requirements to address social and environmental priorities and combat corruption.