The Moon and Sixpence: Resource optimization for banks' CSR strategies under economic stress

Amid economic stress, banks face dual challenges: contractionary motives to cut CSR investments due to financial strain and compliance obligations to stimulate economic recovery through strong CSR performance. Grounded in the gain paradox of the conservation of resources theory, this study investigates how banks optimize CSR strategies to achieve rapid financial returns under pressure. Through a fuzzy-set qualitative comparative analysis of Chinese banks from 2022 to 2024, we identify four equivalent stakeholder interaction configurations that drive financial performance and reveal the economic path of selective stakeholder engagement. Findings demonstrate that banks need not universally satisfy all stakeholders, but instead, targeted investments in key groups deliver optimal returns. Four distinct CSR resource optimization configurations emerge. These heterogeneous strategies apply to different banks, yet shareholders play a universal role. Our study offers actionable insights into the tension between banks' CSR ideals and financial reality under economic pressure, and is valuable for managers and policymakers in fostering banking preparedness for future challenges.