Exploring the Impact of Corporate Social Responsibility on Stakeholder Trust and Corporate Reputation in the Banking Industry

Abstract

This study aimed to explore how corporate social responsibility (CSR) initiatives influence stakeholder trust and corporate reputation within the banking industry. A qualitative research design was employed using semi-structured interviews to collect in-depth data from 22 participants, including bank managers, CSR officers, employees, and long-term clients in Tehran. Participants were selected through purposive sampling to ensure relevance and diversity in perspectives. Data collection continued until theoretical saturation was reached. Interviews were audio-recorded, transcribed verbatim, and analyzed using thematic analysis facilitated by NVivo software. The analytical process followed Braun and Clarke’s six-phase framework, allowing the identification of key themes and subthemes that emerged organically from the data. Three primary themes were identified: stakeholder trust development, CSR as a reputation enhancer, and organizational integration of CSR. Subthemes included transparent communication, ethical banking practices, community engagement, value alignment, media visibility, and leadership commitment. Participants emphasized that authentic, well-communicated, and strategically embedded CSR practices enhance stakeholder trust by signaling ethical intent and responsiveness to social concerns. Additionally, CSR contributed to a favorable corporate image, brand differentiation, and reputational resilience in times of crisis. Internal factors such as cross-departmental collaboration, employee involvement, and CSR performance evaluation were also critical in operationalizing CSR effectively. CSR plays a vital role in cultivating stakeholder trust and enhancing corporate reputation in the banking sector, especially when integrated into the organization’s values, leadership agenda, and strategic communications. Trust and reputation are not isolated outcomes but are co-constructed through consistent, authentic CSR engagement with internal and external stakeholders. These findings offer both theoretical insights and practical guidance for banks aiming to strengthen their stakeholder relationships through meaningful CSR strategies.