Transparency and reputation of Spanish banks: construction through the Principles of Responsible Banking (PRB)

Abstract

This paper analyses how the 10 Spanish banks adhering to the Principles of Responsible Banking communicate their actions in their annual
reports, thereby revealing their level of transparency and its
correlation with their reputation. A qualitative methodology has been
used, specifically content analysis, using the quality criteria for
CSR-related information as identified by ISO 26000. The results show
that there are differences between banks and none of them achieve
compliance with all ISO 26000 variables; however, most banks demonstrate
a moderate level of compliance. The criteria worst addressed by the
banks are providing 'balanced' and 'accessible' information.
Furthermore, the study reveals that the validity of the information
provided, in terms of its relevance to stakeholders, is low. In terms of
the banks' reputation, it is observed that the implementation of the PRB
has not significantly contributed to building trust and reputation among their stakeholders, but it has helped their positive development.Regarding reputation, the evolution of the Merco ranking of the last 5 years is observed, comparing the scores prior to the implementation of the PRB and those after it. It should be noted that the evolution has only been positive in the case of one bank, which seems to indicate that the implementation of the PRBs have not been significant for building the banks' reputation amongst their stakeholders.