Banking foundations and the CSR of Italian listed banks: The case of Monte dei Paschi di Siena

Abstract

Purpose – This study investigates the relationship between the ownership structure and the corporate social responsibility (CSR) policies of the Italian listed banks. In particular, it focuses on the impact that institutional investors characterized by a philanthropic orientation (banking foundations) exert on the socially oriented management of the Italian financial institutions.

Methodology – This chapter adopts a case study approach. It examines the CSR of the bank Monte dei Paschi di Siena and the role that its controlling shareholder (Fondazione MPS) plays in promoting the social strategy implemented by the Italian bank.

Findings – The Monte dei Paschi di Siena CSR strategy appears to be strongly influenced by the activity of its institutional investor. The skills, knowledge, and the cultural proneness toward social issues of the Fondazione MPS are successfully transferred to the bank and shape its social strategy.

Research limitations – This chapter suffers of the limitations generally associated to the case study research methodology. In particular, the findings of this study can be extended to other cases only after a detailed examination of market wide, institutional and corporate governance differences.

Social implications – The positive relationship between nonprofit institutional investors and the CSR strategy effectiveness unveils corporate governance mechanisms useful to increase the overall value creation process of the organizations.

Originality/value of the chapter – This study contributes to the CSR literature by analyzing if and how the philanthropic nature of the blockholders affect the CSR policies carried out by the entities they control.

Citation

Moscariello, N. and Masiello, B. (2013), "Banking foundations and the CSR of Italian listed banks: The case of Monte dei Paschi di Siena", Institutional Investors’ Power to Change Corporate Behavior: International Perspectives (Critical Studies on Corporate Responsibility, Governance and Sustainability, Vol. 5), Emerald Group Publishing Limited, Leeds, pp. 225-251. https://doi.org/10.1108/S2043-9059(2013)0000005018