The Role of Stakeholders in CSR Reporting of Non-Listed Banks

We investigate the role of stakeholders in the CSR reporting of non-listed savings banks in Germany. They are established by municipal trustees and serve clients in their distinct operating area. Reporting discretion under the Non-Financial Reporting Directive may lead to variation in CSR reporting due to differences in sustainability interests of banks’ stakeholders and CSR governance (e.g. existence of a CSR manager). We document that the CSR reports and specific CSR dimensions are intensely associated with the existence of strong CSR governance and to a lesser extent with the interests of municipal trustees and bank clients. However, the associations with these stakeholders are predominantly present in banks with strong CSR governance. Our findings inform policy discussions about detailed CSR disclosure requirements (e.g. the European Sustainability Reporting Standards) and extension of reporting scope to firms with regional orientation and absence of typical shareholders.