Purpose: This study intends to test the relationship between banks’ board diversity, detected with age and gender characteristics, and banks’ social performance. The resource dependence theory posits that board diversity is a strategic tool able to enrich the board of directors by expanding skills and the number of links with stakeholders, which have a strategic role in achieving a competitive advantage and sustainable goals, especially in the banking sector.Design/methodology/approach: The research hypotheses are tested using a sample of 46 European banks observed from 2009 to 2017. The gender and age diversity data of bank board members are hand-collected from banks’ social reports.Findings: The empirical results show that bank social performance is positively influenced by board gender and age diversity. Thus, the human capital determined by a higher bank’s board diversity constitutes an essential resource for adopting more sustainable business models.Originality/value: This paper analyses the association between board diversity and social performance, providing empirical evidence for the European banking sector in the period after the 2008 global financial crisis. The banking literature provides scarce evidence on the topic; however, the empirical results claim the strategic importance of the appointment of directors to the banks’ boards to balance corporate strategy with social and environmental issues generating a positive impact on sustainable growth.

Purpose: Corporate social responsibility (CSR) activities are increasingly prominent in the current agendas of firms, regulatory agencies and consumers worldwide. It is vital for banks to understand how consumers perceive CSR activities, as such activities strengthen their brand equity building. This study examines the relationship between financial consumers’ perceptions of banks’ CSR initiatives and brand equity, identifying a mediating influence of consumer trust and satisfaction. Design/methodology/approach: The survey was conducted by distributing questionnaires to Italian banking consumers (941 valid responses). The research hypotheses were tested using structural equation modeling and confirmatory factor analysis. Findings: Our analysis reveals that consumers’ perceptions of banks’ CSR initiatives directly affect brand equity. Moreover, trust and satisfaction positively mediate the relationship between consumers’ perceptions of CSR initiatives and brand equity in the Italian banking industry. Originality/value: These findings advance understanding by making a novel contribution to the literature; they also have managerial implications. In terms of literature advancement, we provide new evidence related to a context with specific features, namely Italy. From a managerial perspective, this study highlights the importance of informing Italian customers about and promoting awareness of sustainable activities. In turn, client perceptions affect the banks’ value.

This paper aims to explore the relationship between the economic, environmental, social, and corporate governance component of Corporate Social Performance (CSP) and the Corporate Financial Performance (CFP) in the European banking sector. The empirical analyses, based on panel data, are performed on a sample of 70 listed European banks (EU28) over the period 2011-2015. The main results show a significant and positive relationship between the aggregated CSP measure and the average profitability of banks' assets and market capitalization. Furthermore, the social component positively affects the average return on assets and equity; the economic component is positively associated with the performance of prospective profitability and market capitalization; finally, the environmental component is positively associated with the ROAA. Sustainable banks, in line with the stakeholder Theory, through ethical and social policies, might increase their financial and economic performance.