CSR IN MEXICO: SHIFTING FROM PHILANTHROPY TO STRATEGIC CSR IN THE BANKING SECTOR

Developing countries, such as Mexico, have traditionally associated Corporate Social Responsibility (CSR) with philanthropy and have rarely integrated CSR strategies into its core business. However, the 2008 financial crisis has increased public scrutiny of the financial sector practices, leading banks to rethink the way they approach CSR. As part of this new approach to CSR, banks in Mexico are attempting to move away from a solely philanthropic view towards a more strategic implementation that will create value from both to the firm and to the community, and strengthen their competitive positioning in Mexico. CSR literature has not covered the changes CSR has faced as a result of this crisis in the banking sector of a developing country such as Mexico, and the new CSR strategies banks have adopted in an attempt to regain credibility as socially responsible institutions. Therefore, this paper will examine the changes in CSR initiatives in the banking sector in Mexico – pre and post financial crisis – through the example of 4 of the biggest banks in Mexico. Furthermore, it will assess whether those banks have achieved to move from pure philanthropic CSR to the implementation of CSR as part of their core strategies. Finally, the paper will provide an overview of the challenges the Mexican banking industry faces when implementing strategic CSR and possible trends for the near future.