The impact of banking organization’s initiatives aligned with economic, environmental, and social Sustainable Development Goals (SDGs) on the behavior of their customers

Abstract

Numerous economic, environmental, and social difficulties are linked to the banking sector, whether directly or indirectly. Despite being a long-held opinion, this became increasingly clear following the 2008 financial crisis, during which the sector was heavily held accountable for both economic and societal difficulties. In order to address these concerns, banking institutions have lately introduced sustainability and corporate social responsibility (CSR) management practises aligned with the seventeen Sustainable Development Goals (SDGs) set by the UN. These practises should not only satisfy the commitment of the banking industry to community and the economy, but also inspire confidence among clients who want to hold banks accountable for increased progress towards the Sustainable Development Goals. This research explores the impact of banking firms' SDG practises on their clients. A conceptual framework has been developed using PLS-SEM to outline the possible linkages between customers and banking institutions that support the Sustainable Development Goals (SDGs).