Abstract :

This research delves into the integration of Corporate Shared Value (CSV) within the banking industry, focusing on its role in fostering competitive advantage particularly in developing countries, with a certain emphasis on Indonesia. It scrutinizes the strategic implementation and effectiveness of CSV practices, contributes to both social impact and profitability, especially in the context of PT Bank XYZ. The study investigates Bank XYZ’s innovative initiatives, including the ‘Enhance Young MSMEs’ program, aimed at empowering Indonesian MSMEs. This program supports scale up to international market, digital transformation, modern practices, branding enhancement and financial literacy, aligning with Indonesia’s ‘Emas 2045’ vision. The research employs a combination of literature review and qualitative analysis, including interviews with Bank XYZ representative and MSME participants, to understand CSV’s role in banking and its impact on competitive advantage in developing countries.

---

Keywords :

Banking Industries; Corporate Shared Value; Corporate Social Responsibility; Competitive Advantage; Developing Countries

---

References :

1. Agustina, Dian, Mahfud Sholihin, and Annisa Fithria. 2019. “The Efficiency of Indonesian Islamic Rural Banks: A Stochastic Frontier Analysis.” International Journal of Islamic Economics and Finance (IJIEF) 1 (2). https://doi.org/10.18196/ijief.1212.
2. Akpinar, Murat, and Paula Ilmarinen. 2018. “Creating Shared Value in the Banking Industry: A Case Study from Finland.”
3. Alfiansyah, Iqbal Bagus. 2022. Proposed CSR Standard for Regional Development Banks in Indonesia: Case Study of PT. Bank Pembangunan Daerah Jawa Timur, Tbk., Masters’ Final Project, Institut Teknologi Bandung.
4. Atkinson, A., & Messy, F. A., 2013. Promoting Financial Inclusion through Financial Education. OECD Working Papers on Finance, Insurance and Private Pensions, No. 34.
5. Baxi, C V, Rupamanjari Sinha Ray, and All-India Council For Technical Education. 2012. Corporate Social Responsibility : A Study of CSR Practices in Indian Industry. Noida: Vikas Pub. House ; New Delhi.
6. Beck, T., & Demirguc-Kunt, A., 2006. Small and medium-sized enterprises: Access to finance as a growth constraint. Journal of Banking & Finance, 30(11), 2931-2943
7. Bockstette, V., Pfitzer, M., Smith, D., Bhavaraju, N., Priestley, C., & Bhatt, A. 2015. Banking on shared value: How banks profit by rethinking their purpose. Shared Value Initiative, http://sharedvalue.org/banking-shared-value. Accessed on November 3 2023
8. Bowman, Cliff, and Veronique Ambrosini. 2000. “Value Creation versus Value Capture: Towards a Coherent Definition of Value in Strategy.” British Journal of Management 11 (1): 1–15. https://doi.org/10.1111/1467-8551.00147.
9. Carroll, Archie B. 2016. “Carroll’s Pyramid of CSR: Taking Another Look.” International Journal of Corporate Social Responsibility 1 (3): 1–8. https://doi.org/10.1186/s40991-016-0004-6.
10. De Wit, B. and Meyer, R., 2004. Strategy: Process, Content, Context. 3rd Edition, Thomson Learning, London.
11. Delgado-García, Juan Bautista, and Juan Manuel De La Fuente-Sabaté. 2009. “How Do CEO Emotions Matter? Impact of CEO Affective Traits on Strategic and Performance Conformity in the Spanish Banking Industry.” Strategic Management Journal, n/a-n/a.https://doi.org/10.1002/smj.817.
12. Demirgüç-Kunt, A., Klapper, L., Singer, D., Ansar, S., & Hess, J., 2018. The Global Findex Database 2017: Measuring Financial Inclusion and the Fintech Revolution. World Bank.
13. Flammer, C., 2021. Green Bonds: Effectiveness and Implications for Public Policy. Environmental and Energy Policy and the Economy, 2, 42-77.
14. Hohnen, Paul & Potts, Jason. 2007. Corporate Social Responsibility: An Implementation Guide for Business, International Institute of Sustainable Development. ISO. N.d. ISO 26000 Guidance on Social Responsibility. https://www.iso.org/files/live/sites/isoorg/files/store/en/PUB100258.pdf
15. Idowu, Samuel O, and Walter Leal Filho. 2009. Global Practices of Corporate Social Responsibility. Berlin, Heidelberg: Springer Berlin Heidelberg. https://doi.org/10.1007/978-3-540-68815-0.
16. Ilmarinen, P., & Akpinar, M. 2018. Creating shared value in the banking industry : a case study from Finland.
17. Islam, Md. Rabiul, and Syed Zabid Hossain. 2019. “Conceptual Mapping of Shared Value Creation by the Private Commercial Banks in Bangladesh.” Asian Journal of Sustainability and Social Responsibility 4 (1). https://doi.org/10.1186/s41180-019-0024-8.
18. Ledgerwood, J., & White, V., 2006. Transforming Microfinance Institutions: Providing Full Financial Services to the Poor. World Bank Publications.
19. Licandro, Oscar Daniel, Adán Guillermo Ramírez García, Lisandro José Alvarado-Peña, Luis Alfredo Vega Osuna, and Patricia Correa. 2019. “Implementation of the ISO 26000 Guidelines on Active Participation and Community Development.” Social Sciences 8 (9): 263. https://doi.org/10.3390/socsci8090263.
20. Menghwar, Prem and Daood, Antonio. 2021. Creating shared value: A systematic review, synthesis, and integrative perspective, International Journal of Management Reviews, 1–20.
21. Mintzberg, H., et al., 1998. Strategy Safari: A Guided Tour through the Wilds of Strategic Management. Prentice Hall, Upper Saddle River.
22. Mirvis, Philip, Maria Elena Baltazar Herrera, Bradley Googins, and Laura Albareda. 2016. “Corporate Social Innovation: How Firms Learn to Innovate for the Greater Good.” Journal of Business Research 69 (11): 5014–21. https://doi.org/10.1016/j.jbusres.2016.04.073.
23. Mohan, R., 2006. Economic Growth, Financial Deepening and Financial Inclusion. Reserve Bank of India Bulletin.
24. Omar, Mahomed Shoaib, and Jeremiah Madzimure. 2022. “Exploring the Performance of Shared-Value Banking at Discovery Bank: A Leadership Perspective.” EUREKA: Social and Humanities, no. 2 (March): 36–45. https://doi.org/10.21303/2504-5571.2022.002330.
25. Ouma, S. A., Odongo, T. M., & Were, M., 2017. Mobile financial services and financial inclusion: Is it a boon for savings mobilization? Review of Development Finance, 7(1), 29-35.
26. Papageorgio, Evan., et al, 2019. “Connecting the Dots between Sustainable Finance and Financial Stability.” IMF. 2019. https://www.imf.org/en/Blogs/Articles/2019/10/10/Blog-connecting-the-dots-between-sustainable-finance-and-financial-stability.
27. Park, Kwang O. 2020. “How CSV and CSR Affect Organizational Performance: A Productive Behavior Perspective.” International Journal of Environmental Research and Public Health 17 (7): 2556. https://doi.org/10.3390/ijerph17072556.
28. Pfitzer, M., et al., 2013. “Innovating for Shared Value”. Harvard Business Review 91(2)
29. Porter, Michael E. 1985. Competitive Advantage. University of California.
30. Porter, Michael, and Mark Kramer. 2011. “The Big Idea Creating Shared Value How to Reinvent Capitalism-and Unleash a Wave of Innovation and Growth.” https://www.communitylivingbc.ca/wp-content/uploads/2018/05/Creating-Shared-Value.pdf.
31. Post, James E., and Lawrence Anne T., and Webber, James. 2002. Business and Society: Corporate Strategy, Public Policy, Ethics, tenth edition, McGraw Hill.
32. Purba, Alan smith, Eko Ganis Sukoharsono, and Bambang Hariadi. 2020. “Meaningful Practice Creating Shared Value as a Contribute to Sustainable Development Goals.” International Journal of Research in Business and Social Science (2147- 4478) 9 (7): 222–32. https://doi.org/10.20525/ijrbs.v9i7.934.
33. Rabiul Islam, Md., Syed Zabid Hossain, and Rashidah Abdul Rahman. 2018. “Banking on Shared Value: A Study on IBBL in Bangladesh.” Indian Journal of Science and Technology 11 (8): 1–15. https://doi.org/10.17485/ijst/2018/v11i8/119482.
34. Scholtens, B., 2006. Finance as a Driver of Corporate Social Responsibility. Journal of Business Ethics, 68(1), 19-33.
35. Sybille Sachs, Edwin Rühli, and Isabelle Kern. 2009. Sustainable Success with Stakeholders. London Palgrave Macmillan Uk.
36. Thompson, Arthur A. 2022. Crafting and Executing Strategy : The Quest for Competitive Advantage : Concepts and Cases. 23rd ed. New York, Ny: Mcgraw-Hill Education.
37. UNEP. n.d. “Law of the Republic of Indonesia No. 40 of 2007 Concerning Limited Liability Companies. | UNEP Law and Environment Assistance Platform.” Leap.unep.org. Accessed December 20, 2023.

https://leap.unep.org/en/countries/id/national-legislation/law-republic-indonesia-no-40-2007-concerning-limited-liability.

1. Wulfson, Myrna. 2001. “The Ethics of Corporate Social Responsibility and Philanthropic Venturesl.” Journal of Business Ethics 29 (1/2): 135–45. https://doi.org/10.1023/a:1006459329221.