Exploring The Role of The Banking Sector in Philanthropy in Two Major African Economies

• In Event: Civil society and philanthropy

Abstract

The global interest in the philanthropic endeavours of the banking sector has been steadily gaining momentum, as evidenced by the works of Ottinger (2008) and the recent research by Salamon and Turrillas (2020) highlighting the influential role of banks in shaping the global charitable landscape. Closer scrutiny reveals studies like Maixé-Altés (2009) examining the impact of Scottish Banks' management on the philanthropic sector, while regions like Indonesia and India have delved into the convergence of zakat and banking in fortifying social welfare strategies and establishing standardised frameworks for sustainable banking performance (Kumar & Prakash, 2018; Asiyah et al., 2019).
In the African context, Horne and Raliphada (2017) have explored the banking sector's role as a financial intermediary and impact facilitator in connecting capital providers with social needs, while Penn and Thomas (2017) have shed light on how banks engage in philanthropic practices through employee participation in corporate social responsibility initiatives, thereby mitigating risks and yielding benefits. This study aims to comprehensively investigate the philanthropic role of banks in the dynamic socio-economic landscapes of South Africa and Ghana. With the banking industry assuming a pivotal position in driving sustainable economic growth and social development in numerous nations, there is increasing pressure on banks to transcend conventional metrics of economic and financial performance. Consequently, banks progressively incorporate strategic and sustainable practices into their corporate strategies and operations.
The methodology will employ face-to-face interviews with carefully selected participants, including management personnel from diverse banking institutions offering philanthropy advisory services, as well as purposively chosen staff members and identified private bankers in South Africa and Ghana. Data analysis will be conducted following the framework of Critical Systems Heuristics.
This proposed research bears significant importance on multiple fronts. Firstly, it advances the theoretical discourse on the role of banks in philanthropy by employing Critical Systems Heuristics as our guiding framework. Secondly, it bridges the divide between academic discourse and practical application, offering pragmatic insights into the philanthropic activities of banks. Thirdly, it extends the geographic scope of existing literature, predominantly focused on European and American contexts, by centring the study on two burgeoning African economies. Finally, this research offers an empirical contribution by adopting an emancipatory perspective, deviating from the conventional business case literature prevalent in current scholarship.
In conclusion, this study promises to provide a comprehensive and nuanced understanding of the multifaceted role that banks play in philanthropy within the specific contexts of South Africa and Ghana. Through a robust methodology and theoretical framework, this research contributes to the evolving discourse surrounding the philanthropic endeavours of the banking sector, both in Africa and on a global scale.

References

Asiyah, B. N., Nasir, M. R., & Ahsan, M. (2019). Philanthropy Of Islamic Banking: A Strategy in Strengthening the Economic Growth and Prosperity. Share: Jurnal Ekonomi dan Keuangan Islam, 8(2), 162-180.
Horne, R., & Raliphada, L. (2017). South African banking sector as a positive social impact creator: An emerging economy impact investment perspective. AfricaGrowth Agenda, 2017(2), 24-28.
Kumar, K., & Prakash, A. (2018). Developing a framework for assessing sustainable banking performance of the Indian banking sector. Social Responsibility Journal, 15(5), 689-709.
Maixé-Altés, J. C. (2009). Enterprise and philanthropy: the dilemma of Scottish savings banks in the late nineteenth century. Accounting, Business & Financial History, 19(1), 39-59.
Ottinger, R. J. (2008). Left brain right heart: How leading financial and legal firms are deploying best philanthropic and family wealth practices to become legacy advisory firms of the future. J. Pract. Est. Plan., 10, 31.
Penn, V. C., & Thomas, P. H. (2017). Bank employees’ engagement in corporate social responsibility initiatives at a South African retail bank. Acta Commercii, 17(1), 1-10.
Salamon, L.M. & Turrillas, J. A. (2020). “Spain’s 'la Caixa' Banking Foundation: A Global PtP Model,” A Philanthropication thru Privatization Case Study. (Baltimore, MD: Johns Hopkins Center for Civil Society Studies, 2020).

Authors

• Neville Mangwiro, Centre on African Philanthropy and Social Investment, University of the Witwatersrand

• Bhekinkosi Moyo, Centre on African Philanthropy and Social Investment CAPSI

• Matilda Owusu-Ansah, Centre on African Philanthropy and Social Investment (CAPSI)