კონფერენცია

∘ Maya Gogokhia ∘
CORPORATE SOCIAL OF COMMERCIAL BANKS FOR THE ISSUE OF LIABILITY ASSESSMENT

Summary

One of the important lessons learned from the global financial crisis is that ensuring the sustainability of a particular financial institution by the financial regulator is not enough, since it does not ensure the stability of the financial system as a whole.Adherence to the principle of social responsibility by the state, the national bank, commercial banks, their employees and consumers is important for the stability of the banking system.Otherwise, the crises of recent years have brought to the fore the ethical principles of behavior of monetary institutions, including, first of all, banks, since all their activities have a significant impact on the state of society and the environment.

Nowadays, it is difficult to find a good reputable company in the world that does not pay due attention to the issue of social responsibility, which is the response of business to the changing needs of society.Successful companies are interested in their own business, as well as they impact on the social, economic and environmental problems.ESG risk management in the financial sector of Georgia have to be raised to a higher level.In this regard, it is important to develop a methodology for assessing the social responsibility of banks.

The work discusses rating (index) methods that are used in the practice of foreign companies to assess the corporate social responsibility of non-financial companies and banks, also, some interesting approaches to assessing the social responsibility of banks which are given in the scientific literature.It is emphasized that it is advisable to use a multivariate model with the calculation of a consolidated rating for each bank, which should include the following indicators: compliance with rules and regulations by banks, code of ethics, non-financial reporting, responsible financial products, social behavior.

The ratings assigned to Georgian commercial banks on the basis of social responsibility will enable the general public, including investors, to define the mission of a particular bank, its differences and advantages over other banks.This will form the basis of the decision to partner with banks and increase confidence in the banking system.

Key words: Financial institutions, CSR, ESG risk management, rating ( indexation) methods.

Ivane Javakhishvili Tbilisi State University Paata Gugushvili Institute of Economics International Scientific C O N F E R E N C E S "ECONOMY – XXI CENTURY"

E ISSN 2587 - 4691	∘ Maya Gogokhia ∘ CORPORATE SOCIAL OF COMMERCIAL BANKS FOR THE ISSUE OF LIABILITY ASSESSMENT Summary One of the important lessons learned from the global financial crisis is that ensuring the sustainability of a particular financial institution by the financial regulator is not enough, since it does not ensure the stability of the financial system as a whole.Adherence to the principle of social responsibility by the state, the national bank, commercial banks, their employees and consumers is important for the stability of the banking system.Otherwise, the crises of recent years have brought to the fore the ethical principles of behavior of monetary institutions, including, first of all, banks, since all their activities have a significant impact on the state of society and the environment. Nowadays, it is difficult to find a good reputable company in the world that does not pay due attention to the issue of social responsibility, which is the response of business to the changing needs of society.Successful companies are interested in their own business, as well as they impact on the social, economic and environmental problems.ESG risk management in the financial sector of Georgia have to be raised to a higher level.In this regard, it is important to develop a methodology for assessing the social responsibility of banks. The work discusses rating (index) methods that are used in the practice of foreign companies to assess the corporate social responsibility of non-financial companies and banks, also, some interesting approaches to assessing the social responsibility of banks which are given in the scientific literature.It is emphasized that it is advisable to use a multivariate model with the calculation of a consolidated rating for each bank, which should include the following indicators: compliance with rules and regulations by banks, code of ethics, non-financial reporting, responsible financial products, social behavior. The ratings assigned to Georgian commercial banks on the basis of social responsibility will enable the general public, including investors, to define the mission of a particular bank, its differences and advantages over other banks.This will form the basis of the decision to partner with banks and increase confidence in the banking system. *Key words:* Financial institutions, CSR, ESG risk management, rating ( indexation) methods.