Research On The Supervision Mechanism Of Commercial Bank’s Social Responsibility In China

Social responsibility of commercial banks refers to economic, legal, moral and charity responsibility undertaken by financial institutions in banking industry as to stakeholders like shareholders, staffs, consumers, commercial partners, government and communities, as well as promotion of social and economic sustainable development. With the quickening in the process of economic globalization, the importance of banking industry has been increasingly obvious. As a logical result, banking industry is also facing with pressures from all kinds of aspects including society, environment, staff, consumer, clients and government supervision institutions and so on. Under most circumstances, whether the practice of social responsibility can be implemented well has become significant indicator to evaluate a bank. At the meantime, the international standard related to banking industry has been increasingly mature. For example, the formulation of equator principle has provided with theoretical basis for social and environmental problems occurring in the process of dealing with project financing by commercial banks.Since outburst of subprime crisis in 2008, commercial banks in China have gradually reinforced their attention on social responsibility. However, compared with situation of social responsibility of oversea banks, Chinese commercial banks’ situation of undertaking social responsibility is still not ideal with problems existing such as imperfect external mechanism, not mating internal mechanism, and imbalance among development of commercial banks. At the meantime, Chinese commercial banks start to transfer to foreign financial market and gradually occupy significant positions. In global Forbes ranking list, ICBC has been winner in top 2000 global enterprises list for continuous two years in 2013 and 2014.As a result, how to practice social responsibility better has become important subject worthy of consideration for Chinese commercial banks. Enterprise social responsibility theory has developed into an increasingly mature status with dozens years of experiences. As enterprise legal persons in common sense, the social responsibility undertaken by commercial banks possess complicity and diversity of stakeholders, specialty of economic role and uniqueness of operation behaviors, as well as important of social role and so on. Commercial banks also undertake effects of micro adjustment of economy, promotion of substantial fairness, and radiation on external enterprises and so on with consideration on current situation and adjustment undertaken by Chinese commercial banks. Thus, further research on supervision mechanism over Chinese commercial banks’ social responsibilities possesses significant practical meaning and realistic meaning.The thesis starts from theoretical basis of commercial banks in undertaking social responsibilities, and analyzes problems existing in current supervision systems of commercial banks in practice of social responsibility based on analysis on specialty of social and economic role of commercial banks, reference to substantial fairness theory and enterprise citizenship theory, including problems existing in internal supervision mechanism and external supervision mechanism, based on which, perfect route of supervision mechanism over Chinese commercial banks in practicing social responsibility is proposed by reference to practical experience of oversea commercial banks in practicing social responsibility combined with current situation and practical national condition of supervision mechanism over Chinese commercial banks’ undertaking social responsibility, including internal implementation of ideas and improvement of system; externally, on the one hand, reinforce integration and supplement of rigid rules; on the other hand, mobilize power from multiple parties, and reinforce supervision.