Explain the three principles of Social Responsibility: Sustainability, Accountability, and Transparency which together comprise the central tenet of the social contract between a business and other parts of the society.
Corporate governance in the banking and financial sector is paramount due to its critical role in the global economy. It involves the system of rules, practices, and processes by which banks and financial institutions are directed and controlled. Within this framework, the principles of social responsibility play a crucial role, shaping the relationship between financial institutions and society at large. Sustainability, accountability, and transparency form the cornerstone of this social contract, defining the expectations and obligations of financial institutions towards stakeholders.
1. Sustainability:
Sustainability refers to the long-term viability and resilience of financial institutions in economic, social, and environmental contexts. In the banking and financial sector, sustainability entails responsible management of resources, risk, and relationships ____ _______ ________ _____ _____ ____ _____ ______ ___ ______ ________ ____.
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