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From Responsibility to Resilience: The Role of Corporate Social Responsibility Committees in the Stability of MENA Banks

Author

Listed:
  • Dhaouadi Hanen

    (LARIMRAF, Higher Institute of Accounting and Business Administration, Manouba University, Tunisia)

  • Saidi Hichem

    (Department of Economics, College of Business, Imam Mohammad Ibn Saud Islamic University (IMSIU), Saudi Arabia)

  • Khemiri Mohamed Ali

    (Faculty of Law, Economics and Management of Jendouba, University of Jendouba, Tunisia)

Abstract

Background Bank stability is fundamental for sustaining economic growth, fostering investment, and maintaining confidence in the financial system. In recent years, the rise of Corporate Social Responsibility (CSR) and the creation of CSR committees (CSRCs) have transformed banks’ governance models toward more ethical, transparent, and accountable practices. Objectives This study examines how CSR committees influence bank stability in the Middle East and North Africa (MENA) region, with a comparative analysis between Gulf Cooperation Council (GCC) and non-GCC countries. Methods/Approach Using an unbalanced panel of 40 commercial banks from 2010 to 2022, the study employs the System Generalised Method of Moments (SGMM) estimator to address endogeneity, account for dynamic panel bias, and control for unobserved heterogeneity, thereby producing robust and reliable estimates. Results Empirical findings reveal that the presence of CSR committees significantly enhances bank stability in the overall sample. However, this positive association is statistically significant only for GCC banks, not for non-GCC counterparts. Conclusions These results highlight that institutional quality, regulatory strength, and governance culture determine how CSR governance mechanisms translate into financial stability. The study contributes to understanding the role of CSR governance in promoting sustainable banking in emerging economies.

Suggested Citation

  • Dhaouadi Hanen & Saidi Hichem & Khemiri Mohamed Ali, 2025. "From Responsibility to Resilience: The Role of Corporate Social Responsibility Committees in the Stability of MENA Banks," Business Systems Research, Sciendo, vol. 16(2), pages 397-416.
    • Handle: RePEc:bit:bsrysr:v:16:y:2025:i:2:p:397-416:n:1018
    DOI: 10.2478/bsrj-2025-0033
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    Keywords

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    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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