Making money move: an analysis of corporate social responsibility activities in money transfer firms

Although research has examined the financial sector’s response to COVID-19, the role of the cross-border money transfer industry remains unclear. This study investigates the corporate social responsibility (CSR) actions of 22 cross-border money transfer firms headquartered in Canada, the US, and the UK to determine how they supported stakeholders during the pandemic. Using qualitative data analysis software, we analyze textual data from company websites, press releases, and blogs to assess CSR activities. Our findings show that nine of the 22 cross-border money transfer firms engaged in COVID-related CSR efforts and communicated these actions through their controlled channels. Two out of every three firms that publicized their CSR initiatives during the pandemic were not traded in any stock exchange market. This research has two key implications. First, disclosing CSR initiatives through controlled or uncontrolled channels increases the likelihood of attracting socially conscious customers and investors, which could ultimately lead to higher economic profits. Second, economic profit can create a bandwagon effect, encouraging other money transfer firms to integrate CSR activities into their business models, which may enhance the well-being of the communities they serve and rely upon.