DEVELOPMENT OF CORPORATE SOCIAL RESPONSIBILITY IN THE BANKING SECTOR OF EU COUNTRIES

The activities of banking institutions are undergoing significant transformations under the influence of the growing role of sustainable development and corporate responsibility to society, highlighting the importance of implementing the concept of corporate social responsibility (CSR). This challenge is a key focus for the banking systems of European Union countries, considering the plans of EU government bodies to achieve climate neutrality and build a sustainable society. The article explores the essence of CSR, its regulatory and legal framework, and provides an overview of the key factors influencing its development in the banking sector of European Union countries. The article aims to assess the impact of internal financial and non-financial, external regulatory and macroeconomic factors on the development of CSR in banks of the EU countries. The article provides insights into the development of EU legislation on implementing CSR in the banking business. It determines that the basis of regulatory and legal acts on this issue are international standards (ISO:26000) and regulatory and legal acts adopted by the highest legislative bodies of the EU (Directive on Non-Financial Reporting 2014/95/EU, Action Plan on Human Rights and Democracy 2020-2027, Taxonomic Regulation EU 2020/852), which are also universal for non-financial corporations. The study used the Heckman two- stage model to identify factors influencing the development of CSR in European banks and their profitability. In the process of forming the statistical sample, a sample was formed based on 69 out of 111 banks from 15 EU countries based on 2023 data, which are under the direct supervision of the ECB and which were assigned ESG ratings by leading rating agencies. The results of the statistical analysis revealed that the development of CSR is influenced by both internal financial and non-financial, as well as external regulatory and macroeconomic factors, and it was also substantiated that the implementation of the CSR system in banks is possible provided that the required level of profitability is maintained. The results of the work have practical significance for increasing the efficiency of management of banking institutions, adapting their activities to modern challenges and strengthening relations with stakeholders not only in the context of the banking sector of EU countries, but also for the development of Ukrainian banking business in the context of economic and political integration.