Abstract

The paper introduces an important development in the area of corporate social responsibility in the banking sector, which has recently been accomplished in Italy. A new Italian bank (“Prossima s.p.a.”), incorporated in May 2007, articulates in its articles of association a number of innovative legal provisions that underscore its socially responsible features. To this end, deviation from profit maximization as a single corporate objective and formation of a designated organ (Committee) to guide the board of directors and set the framework for social banking are a landmark in terms of social banking and corporate governance. These provisions balance between shareholders expectations for profit on the one hand, and the interests of other stakeholders and the community at large on the other. The paper assesses the new social banking venture against the backdrop of current debate over corporate social responsibility and the evolution of a social norm that calls for greater corporate citizenship.