The corporate governance and social responsibility nexus in the Lebanese banking industry

Purpose - The purpose of this paper is to explore the contrasting views of banks and banking authorities in Lebanon regarding the corporate governance (CG) and corporate social responsibility (CSR) nexus. Design/methodology/approach - Using survey responses collected from the managers of five Lebanese banks and banking authorities, the authors conduct a qualitative comparative study of the opinions on CG, CSR and CG-CSR nexus. Findings - The findings of this paper reveal that while a CG culture is well-instituted by the authorities and that some forms of CSR are already practiced by banks, disagreements exist between the Lebanese banks and banking authorities in defining the CG-CSR nexus. While CG is viewed as an all-encompassing concept by the banking authorities, most banks ascribe to the paradigm that CG is component of CSR. Research limitations/implications - The sample of this paper consists of large banks that have clear CG and CSR agendas. The results, therefore, cannot be generalized for the wider population of Lebanese companies that are characterized by family ownership and non-separation of ownership and control. Practical implications - This paper informs both managers and policymakers on the differing views of the CSR-CG nexus while also contributing to informing the policy dialogue. Theoretically, this paper sheds light on the CG-CSR nexus in a developing country context. Originality/value - There is a paucity of research on the CG-CSR nexus in the context of developing countries and for the banking sector in specific. This paper aims to address the gap in the literature by providing an in-depth qualitative examination of the CG, CSR and the CG-CSR nexus in the context of the Lebanese banking sector.