This paper analyzes the relevance of social accounting information for managing financial institutions, using Banca Transilvania Financial Group (BTFG) as a case study. It explores how social accounting data can enhance decision-making processes within these institutions. Social information from BTFG’s annual integrated reports was used to construct a social balance sheet, and financial data was collected to calculate economic value added (EVA) and social value added (SVA). Research question include: Does social accounting represent a lever for substantiating the managerial decision in financial institutions? Results show that SVA is a valuable indicator for financial institution managers, reflecting the institution’s contributions to social well-being, environmental impact, and community support. Policy implications suggest regulatory bodies should mandate the inclusion of social accounting metrics in financial reporting standards to encourage socially responsible practices, enhance transparency, and incentivize institutions achieving high SVA. This paper contributes to the literature by demonstrating the practical application of social accounting in financial institutions and highlighting the importance of SVA as a managerial tool. It aligns with existing research on integrating corporate social responsibility (CSR) metrics into financial decision-making, enhancing the understanding of combining social and economic indicators for comprehensive performance assessment The abstract covers motivation, methodology, results, policy implications, and contributions to the literature.

Abbas, J. (2020). Impact of total quality management on corporate green performance through the mediating role of corporate social responsibility. Journal of Cleaner Production, 242, 118458. https://doi.org/10.1016/j.jclepro.2019.118458

Adams, C. A. (2017). Understanding Integrated Reporting. Routledge. https://doi.org/10.4324/9781351275002

Alserhan, B. A., Ramadani, V., Zeqiri, J. et al. (2022). Strategic Islamic Marketing. Springer International Publishing. https://doi.org/10.1007/978-3-030-98160-0

Aras, G., Tezcan, N., & Kutlu, F., O., (2018). The value relevance of banking sector multidimensional corporate sustainability performance. Corporate Social Responsibility and Environmental Management, 25(6), 1062–1073. https://doi.org/10.1002/csr.1520

Argento, D., Culasso, F., & Truant, E. (2018). From Sustainability to Integrated Reporting: The Legitimizing Role of the CSR Manager. Organization & Environment, 32(4), 484–507. https://doi.org/10.1177/1086026618769487

Banca Națională a României. (2023). Annual Reports. Available online: https://www.bnr.ro/NBR’s-role-3275.aspx (accessed on 2 March 2024).

Banca, T. (2023). Raport anual. Available online: https://www.bancatransilvania.ro/relatii-investitori/rapoarte-curente (accessed on 2 March 2024).

Boot, A. W. A., Thakor, A. V. (2010). The Accelerating Integration of Banks and Markets and its Implications for Regulation. In: Berger, A. N., Molyneux, P., Wilson, J. O. S. (editors), The Oxford Handbook of Banking. Oxford University Press. pp. 58–89.

Brei, M., Schclarek, A. (2020). Public Bank Lending in Times of Crisis. Journal of Financial Stability, 49, 100740.

Caprio, G., & Honohan, P. (2004). Finance for Growth: Policy Choices in a Volatile World. Available online: http://documents.worldbank.org/curated/en/341151468762914798/Finance-for-growth-policy-choices-in-a-volatile-world (accessed on 2 March 2024).

Carroll, A. B., Brown J. A. (2021). The Routledge Companion to Corporate Social Responsibility, Corporate social responsibility: A chronicle and review of concept development and refinements. Oxon: Routledge.

Ceesay, N., Shubita, M., & Robertson, F. (2021). Sustainability Reporting Practices in FTSE 100 Companies. In: The Sustainability Debate (Critical Studies on Corporate Responsibility, Governance and Sustainability, Vol. 14). Emerald Publishing Limited, Leeds. pp. 77-100

Contini, M., Annunziata, E., Rizzi, F., et al. (2020). Exploring the influence of Corporate Social Responsibility (CSR) domains on consumers’ loyalty: An experiment in BRICS countries. Journal of Cleaner Production, 247, 119158. https://doi.org/10.1016/j.jclepro.2019.119158

Dan ioan, T., Silvia S. M., Carmen A. P., et al. (2022). Using CSR Communication through Social Media for Developing Long-Term Customer Relationships. The Case of Romanian Consumers. Economic computation and economic cybernetics studies and research, 56(2/2022), 255–272. https://doi.org/10.24818/18423264/56.2.22.17

Demir, M., & Min, M. K. (2021). A Comparative Analysis of Sustainability Reports Published by Global Enterprises: Standalone CSR Versus Integrated Reporting. The BRC Academy Journal of Business, 11(1), 23–51. https://doi.org/10.15239/j.brcacadjb.2021.11.01.ja02

Du, J., Temouri, Y. (2020). CSR and Corporate Financial Performance: The Role of CSR Awareness in the Banking Industry. Journal of Business Research, 113, 321-329.

Dumitru, M., & Dragomir, V. D. (2021). The Factors of Integrated Reporting Quality: A Meta-Analysis. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3940094

Dzinkowski, R. (2015). What’s next for corporate reporting? Strategic Finance, 97(4), 40-45.

Eccles, R. G., & Serafeim, G. (2017). Corporate and integrated reporting. Corporate Stewardship, 156–171. https://doi.org/10.4324/9781351285407-9

Esteban-Sanchez, P., de la Cuesta-Gonzalez, M., & Paredes-Gazquez, J. D. (2017). Corporate social performance and its relation with corporate financial performance: International evidence in the banking industry. Journal of Cleaner Production, 162, 1102–1110. https://doi.org/10.1016/j.jclepro.2017.06.127

European Parliament & Council of the European Union. (2022a). Directive 2022/2464/EU of the European Parliament and of the Council of 14 December 2022 amending Regulation. Available online: https://climate-laws.org/document/directive-eu-2022-2464-of-the-european-parliament-and-of-the-council-of-14-december-2022-amending-regulation-eu-no-537-2014-directive-2004-109-ec-directive-2006-43-ec-and-directive-2013-34-eu-as-regards-corporate-sustainability-reporting-corporate-sustainability-reporting-directive_3a34 (accessed on 2 March 2024).

European Parliament and Council of the European Union. (2022b). Amending regulation (EU) No 537/2014, Directive 2004/109/EC, Directive 2006/43/EC and Directive 2013/34/EU, as regards corporate sustainability reporting. Available online: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32022L2464 (accessed on 2 March 2024).

European Parliament, & Council of the European Union. (2011). Directive 2011/92/EU of the European Parliament and of the Council of 13 December 2011 on the assessment of the effects of certain public and private projects on the environment. Available online: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=celex%3A32011L0092 (accessed on 2 March 2024).

European Parliament, & Council of the European Union. (2014). Directive 2014/95/EU of the European Parliament and of the Council of 22 October 2014 amending Directive 2013/34/EU as regards disclosure of non-financial and diversity information by certain large undertakings and groups. Available online: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=celex%3A32014L0095 (accessed on 2 March 2024).

Farcas, T. V. (2020). Study about the Implementation of the Directive 95/2014 in Romania—Legislative Perspective and the Actual Application. Audit Financiar, 18(158), 339–351. https://doi.org/10.20869/auditf/2020/158/009

Ferramosca, S., & Verona, R. (2019). Framing the evolution of corporate social responsibility as a discipline (1973–2018): A large‐scale scientometric analysis. Corporate Social Responsibility and Environmental Management, 27(1), 178–203. https://doi.org/10.1002/csr.1792

Galletta, S., Mazzù, S., & Naciti, V. (2022). A bibliometric analysis of ESG performance in the banking industry: From the current status to future directions. Research in International Business and Finance, 62, 101684. https://doi.org/10.1016/j.ribaf.2022.101684

Greenbaum, S. I., Thakor, A. V., & Boot, A. W. A. (2019). Dedication. Contemporary Financial Intermediation. https://doi.org/10.1016/b978-0-12-405208-6.00022-x

Gropp, R., Mosk, T., Ongena, S., et al. (2018). Banks Response to Higher Capital Requirements: Evidence from a Quasi-Natural Experiment. The Review of Financial Studies, 32(1), 266–299. https://doi.org/10.1093/rfs/hhy052

Gutiérrez‐Ponce, H. (2023). Sustainability as a strategy base in Spanish firms: Sustainability reports and performance on the sustainable development goals. Sustainable Development, 31(4), 3008–3023. https://doi.org/10.1002/sd.2566

Gutiérrez-Ponce, H., & Wibowo, S. A. (2023). Do Sustainability Activities Affect the Financial Performance of Banks? The Case of Indonesian Banks. Sustainability, 15(8), 6892. https://doi.org/10.3390/su15086892

Gutiérrez-Ponce, H., Chamizo-González, J., & Arimany-Serrat, N. (2022). Disclosure of Environmental, Social, and Corporate Governance Information by Spanish Companies: A Compliance Analysis. Sustainability, 14(6), 3254. https://doi.org/10.3390/su14063254

Hart, T. A., & Sharfman, M. (2012). Assessing the Concurrent Validity of the Revised Kinder, Lydenberg, and Domini Corporate Social Performance Indicators. Business & Society, 54(5), 575–598. https://doi.org/10.1177/0007650312455793

Heimann, M., & Lobre-Lebraty, K. (2019). When does CSR motivate investors? A simulation study. Recherches En Sciences de Gestion, 129(6), 93–124. https://doi.org/10.3917/resg.129.0093

Integrated Reporting (IR). (2023). Black Sun: What Better Reporting Looks Like. Available online: https://www.integratedreporting.org/resource/black-sun-what-better-reporting-looks-like/ (accessed on 2 March 2024).

Kolb, R. W. (2018). Corporate Social Responsibility (RSC) and Corporate Social Performance (CSP). Bus. Ethics Soc, 746-754.

Kuzey, C., & Uyar, A. (2017). Determinants of sustainability reporting and its impact on firm value: Evidence from the emerging market of Turkey. Journal of Cleaner Production, 143, 27–39. https://doi.org/10.1016/j.jclepro.2016.12.153

Lu, J., Liang, M., Zhang, C., et al. (2020). Assessment of corporate social responsibility by addressing sustainable development goals. Corporate Social Responsibility and Environmental Management, 28(2), 686–703. https://doi.org/10.1002/csr.2081

Luceri, B. & Martinelli, E. (editors). (2022). Managing Sustainability. International Series in Advanced Management Studies. Springer International Publishing. https://doi.org/10.1007/978-3-031-12027-5

Marin, L., Martín, P. J., & Rubio, A. (2017). Doing Good and Different! The Mediation Effect of Innovation and Investment on the Influence of CSR on Competitiveness. Corporate Social Responsibility and Environmental Management, 24(2), 159–171. https://doi.org/10.1002/csr.1412

Marino, V., Linder, S., Fauver, L. et al. (2021). Greenwashing in Banking: Evidence from Loan Pricing. Journal of Corporate Finance, 67, 101862.

Matuszak, Ł., & Różańska, E. (2017). CSR Disclosure in Polish-Listed Companies in the Light of Directive 2014/95/EU Requirements: Empirical Evidence. Sustainability, 9(12), 2304. https://doi.org/10.3390/su9122304

Medrado, L., & Jackson, L. A. (2015). Corporate nonfinancial disclosures: An illuminating look at the corporate social responsibility and sustainability reporting practices of hospitality and tourism firms. Tourism and Hospitality Research, 16(2), 116–132. https://doi.org/10.1177/1467358415600210

Menicucci, E., & Paolucci, G. (2022). ESG dimensions and bank performance: an empirical investigation in Italy. Corporate Governance: The International Journal of Business in Society, 23(3), 563–586. https://doi.org/10.1108/cg-03-2022-0094

Miller, S. R., Eden, L., & Li, D. (2018). CSR Reputation and Firm Performance: A Dynamic Approach. Journal of Business Ethics, 163(3), 619–636. https://doi.org/10.1007/s10551-018-4057-1

Miralles‐Quirós, M. M., Miralles‐Quirós, J. L., & Redondo‐Hernández, J. (2019). The impact of environmental, social, and governance performance on stock prices: Evidence from the banking industry. Corporate Social Responsibility and Environmental Management, 26(6), 1446–1456. https://doi.org/10.1002/csr.1759

Moyo, T., Duffett, R., & Knott, B. (2020). Environmental Factors and Stakeholders Influence on Professional Sport Organisations Engagement in Sustainable Corporate Social Responsibility: A South African Perspective. Sustainability, 12(11), 4504. https://doi.org/10.3390/su12114504

Ntim, C. G., Osei, K. A., & Soobaroyen, T. (2020). Corporate Social Responsibility, Political Connections, and Bank Performance. Journal of Business Research, 113, 227-239.

Nyabakora, W. I., & Mohabir, S. E. (2024). Corporate social responsibility knowledge base: A bibliometric analysis. Modern Finance, 2(1), 101–120. https://doi.org/10.61351/mf.v2i1.123

Rajnoha, R., Lesníková, P., & Krajčík, V. (2017). Influence of business performance measurement systems and corporate sustainability concept to overal business performance: “save the planet and keep your performance. E+M Ekonomie a Management, 20(1), 111–128. https://doi.org/10.15240/tul/001/2017-1-008

Rodriguez-Fernandez, M. (2016). Social responsibility and financial performance: The role of good corporate governance. BRQ Business Research Quarterly, 19(2), 137–151. https://doi.org/10.1016/j.brq.2015.08.001

Rupley, K. H., Brown, D., & Marshall, S. (2017). Evolution of corporate reporting: From stand-alone corporate social responsibility reporting to integrated reporting. Research in Accounting Regulation, 29(2), 172–176. https://doi.org/10.1016/j.racreg.2017.09.010

Scholtens, B. (2008). Corporate Social Responsibility in the International Banking Industry. Journal of Business Ethics, 86(2), 159–175. https://doi.org/10.1007/s10551-008-9841-x

Shakil, M. H., Mahmood, N., Tasnia, M., et al. (2019). Do environmental, social and governance performance affect the financial performance of banks? A cross-country study of emerging market banks. Management of Environmental Quality: An International Journal, 30(6), 1331–1344. https://doi.org/10.1108/meq-08-2018-0155

Shaukat, A., Qiu, Y., & Trojanowski, G. (2015). Board Attributes, Corporate Social Responsibility Strategy, and Corporate Environmental and Social Performance. Journal of Business Ethics, 135(3), 569–585. https://doi.org/10.1007/s10551-014-2460-9

Siddique, Md. N. E. A., Nor, S. M., Senik, Z. C., et al. (2023). Corporate Social Responsibility as the Pathway to Sustainable Banking: A Systematic Literature Review. Sustainability, 15(3), 1807. https://doi.org/10.3390/su15031807

Siminica, M., Ionașcu, C., & Sichigea, M. (2019). Corporate Social Performance versus Financial Performance of the Romanian Firms. Prague Economic Papers, 28(1), 49–69. https://doi.org/10.18267/j.pep.687

Štreimikienė, D., & Ahmed, R. R. (2021). Corporate social responsibility and brand management: evidence from carroll’s pyramid and triple bottom line approaches. Technological and Economic Development of Economy, 27(4), 852–875. https://doi.org/10.3846/tede.2021.14520

Szegedi, K., Khan, Y., & Lentner, C. (2020). Corporate Social Responsibility and Financial Performance: Evidence from Pakistani Listed Banks. Sustainability, 12(10), 4080. https://doi.org/10.3390/su12104080

Taticchi, P. & Demartini, M. (2021). Corporate Sustainability in Practice. Management for Professionals. Springer International Publishing. https://doi.org/10.1007/978-3-030-56344-8

Tiron-Tudor, A., Nistor, C. S., êtefģnescu, C. A., et al. (2019). Encompassing Non-Financial Reporting in A Coercive Framework for Enhancing Social Responsibility: Romanian Listed Companies’ Case. Amfiteatru Economic, 21(52), 590-606.

Tomsheck, J. W., & Schmitt, A. (2021). Do Socially Responsible Banks Lend Differently? Evidence from Small Business Lending. Journal of Business Ethics, 169(2), 357-381.

Valmayor, M. Á. M., Duarte M. B., & Gil-Alana, L. A. (2021). The Social Balance Sheet as Part of the Annual Report in Financial Institutions. A Case Study: Banco Bilbao Vizcaya Argentaria (BBVA). Sustainability, 13(6), 3075. https://doi.org/10.3390/su13063075

Wnuczak, P. (2018). Social value added (SVA) as an adaptation of economic value added (EVA) to the specificity of cultural institutions. J. Manag. Bus. Adm. Cent. Eur., 26, 100-120.

Wu, M. W., & Shen, C. H. (2013). Corporate social responsibility in the banking industry: Motives and financial performance. Journal of Banking & Finance, 37(9), 3529–3547. https://doi.org/10.1016/j.jbankfin.2013.04.023

Yeazitzis, T., Falcon, A.K., Weger, K. (2021). Non-Financial Aspects of Perceived Affordability Improvement. University of Tennessee at Chattanooga. pp. 24-31.

Yu, Z., Khan, S. A. R., & Liu, Y. (2020). Exploring the Role of Corporate Social Responsibility Practices in Enterprises. Journal of Advanced Manufacturing Systems, 19(03), 449–461. https://doi.org/10.1142/s0219686720500225

Zaman, U., Sikander, S. (2020). Corporate Social Responsibility, Risk-Taking and Bank Performance: The Case of Islamic Banks. Journal of Business Ethics, 162(3), 711-730.

Zingales, L. (2015). Presidential Address: Does Finance Benefit Society? The Journal of Finance, 70(4), 1327–1363. https://doi.org/10.1111/jofi.12295