In the present times, the concept of corporate social responsibility has been observed as the most important requirement. In the wave of changing society, banks play a very crucial and a decisive role. It is therefore, the duty of the financial institutions to promote and grow CSR. The growth of awareness and the increasing demand for the maintenance of transparency within the organization and with the customer has further raised the requirement to grow Corporate Social Responsibility. In the present world, the quality management standards are being practiced strongly in the financial sectors. The term Corporate Social Responsibility can be defined as the business practices and its maintenance that may include those initiatives which can be beneficial for the society. In general, the corporate social responsibility can include different tactics which defines the social responsibility of the sector. So it is very important for the organization to provide quality products and services and also to have the fulfilment of notable social responsibility. It is important for the banks to play a very crucial and a leading role in the maintenance of the Corporate Social Responsibility.
Therefore, it can be concluded that Corporate Social Responsibility is a very important entity for each and every financial institution in the present times. There are a large number of benefits of CSR for the financial institutions. Banks are the most important entity of the economy of any nation. They can play a very important role in maintenance of the prosperity of the nation. In addition to this, it is also important for the banks to play a very important role in society in such a manner that they benefit their society. In this research paper, the role of financial institutions in the promotion of CSR has been discussed. In order to do the analysis of the same, the Corporate Social Responsibility has been understood following which the importance of corporate social responsibility for the banks has been discussed. Further, there has been a comparative analysis of the Corporate Social Responsibility practiced by the banks and the other financial institution in developed and developing nations. From the research it can be concluded that CSR plays a very important role in aiding the success of the financial institutions in the present times.