Banks' responsibilities (3)

Undertaking social responsibility should be one of the core values in good corporate governance, and Chinese commercial banks need to realize their ethical responsibilities in the globalization process. In recent years, especially after the international financial crisis in 2009, the question of how to make the right strategic decisions to ensure stable operation is quite essential to all financial institutions.

To be more specific, first of all, the decision-making by the corporate board should be based on supporting the real economy and pursuing sustainable development, rather than excessively emphasizing short-term profits. Then, the organizational structure and obligation boundary in corporate governance should be clearly defined to improve the efficiency of the implemented CSR plan. Finally, Chinese commercial banks should be more creative by combining Chinese characteristics with global standards in corporate governance. For example, banks should pay attention to the responsibility of protecting their clients and employees, according to the concept of stakeholder lately defined by the Basel Committee on Banking Supervision.

Generally speaking, banks' social responsibility is not limited to contributing to the government tax revenues and doing charitable acts. Its core value is providing professional services to promote social progress and welfare and better protect the environment.

Chinese commercial banks should highlight CSR in their daily operations and corporate culture, taking into consideration all parties' interests. For the banking industry in China, good CSR performance can help them build a better environment for development. Regulators should introduce all necessary regulations and set up a CSR index for public supervision of banks. The banks should also push forward their transnational strategies by integrating with international principles.

Improving the image of Chinese commercial banks will be beneficial for the future of China's banking industry globally. But they can realize sustainable progress if they take CSR and sustainable development as their core values.

The author is a senior manager with Bank of China.