Non-Financial Reporting and Reputational Risk in the Romanian Financial Sector

• Published in: Amfiteatru economic Vol. 22; no. 55; pp. 668 - 691
• Main Authors: Tăchiciu, Laurentiu, Fülöp, Melinda Timea, Marin-Pantelescu, Andreea, Oncioiu, Ionica, Topor, Dan Ioan
• Format: Journal Article
• Language: English
• Published: Bucharest EDITURA ASE 01.08.2020; ASE Publishing House; The Bucharest University of Economic Studies; Bucharest Academy of Economic Studies, Faculty of Commerce
• Subjects: Banking industry; Banks; Business; Business Economy / Management; Business models; Conditioning; Decoding; Economic crisis; Financial institutions; Financial reporting; financial sector; Financial services; International finance; Liability insurance; Maturity; non-financial reporting; Regulation of financial institutions; Reputation management; reputational risk; Reputations; Risk management; Social responsibility; Society; Supervision; Sustainability; Romania; nonfinancial reporting; financial sector; reputational risk; social responsibility
• ISSN: 1582-9146; 2247-9104; 2247-9104
• DOI: 10.24818/EA/2020/55/668

Good reputation is an important intangible asset for any company, but it can be vital for financial institutions. Today, given that the demands on the business environment in terms of social responsibility have greatly increased, the reputation can be worn not only by serious events, but also by the omission or delay of possible and necessary measures and actions to strengthen the sustainability of the activity. In this context, it turned out that there is a strong connection between reputational risk management and the public disclosure of information on the social and environmental impact of the company's activities. This paper proposes a contribution to the empirical decoding of this inter-conditioning through a two-pronged research: on one hand, it investigates the way in which Romanian banking institutions treat reputational risk management and, on the other hand, it analyzes the content of non-financial reports of some financial institutions in the light of the maturity with which they deal with sustainability. The resulting information suggests that there is a delay in understanding the significance of reputational risk and a decoupling of corporate responsibility policies from the risks associated with the business model.