Existing and potential solutions to reduce financial exclusion - theoretical considerations and practical initiatives at the meeting point of finance and ethics

Banks and financial intermediators are motivated in two ways in socially responsible activities: we call them moral and business case. On the one hand, it is their moral obligation to serve the welfare and well-being of the whole society, as explained in the stakeholder theory: a company is not only responsible for its owners but must also consider and report its impact on other groups concerned. Expecting multidimensional value creation can be applied even more to financial intermediators than other economic actors, considering their important role as informal regulator and catalyst in the modern economy. On the other hand, they also have a business interest in responding to social and environmental changes as they can increase their competitiveness and business position: they can reduce conflicts of interest between owners and managers, make consumers more committed, motivate employees, and co-operate with other business partners. The state of the environment and society, the strengthening of the community's goals and the changing economic environment create a foundation and a pressure for the strengthening of ethical, values-based financial activities – based on both motivational factors – even in government regulations. In this paper, I present the development of the CSR in banking sector, the theoretical and practical terms that have emerged from that, focusing on the initiatives that can be linked to financial inclusion in the practice of Global Alliance of Banking on Values’ member banks.