The relationship between corporate sustainability and innovation in the South African banking sector

Abstract

The role of banks in sustainable development has been growing with prominence internationally. Therefore, research was undertaken to ascertain the approach of South African banking sector in respect of corporate sustainability or sustainable banking. The purpose of this research was to further explore the business case thereof in the SA context and specifically where it pertains to product and market innovation. A qualitative research methodology comprising an exploratory research design was applied, consisting of in-depth interviews and secondary data research of a sample of SA banking organisations. Findings indicated that SA banks primarily view corporate sustainability from an integrated approach. The South African macro-environment and national priorities play an important role in determining corporate sustainability initiatives. Accordingly, risks and opportunities are manifest (as part of a regulated and compliance-driven industry). Considering the national context and unique needs of stakeholders, there was evidence of a relationship between corporate sustainability and product and market innovation. However, not all opportunities from a business case perspective and in product and market types have been exhausted in this space. Copyright