Corporate social responsibility and the financial crisis

Abstract

This Thesis deals with Corporate Social Responsibility and the Financial crisis. The causes of financial crisis can be found in the United States, along with companies like Fannie Mae and Freddie Mac, who played a significant role in the U.S. financial market. They sold repackaged securities to financial institutions across many countries. Some financial institutions had thousands of these securities in their portfolios. This way, the problem of the U.S. garbage mortgages was dispersed to Dutch, Belgian and English banks. As a result, these banks were dragged into financial problems and had to be rescued by domestic and foreign governments. The period of economic growth and stability in the global financial markets has contributed excessive risky decision-making of executives. Top-management were given high bonuses for achieving profit targets. However banks , for instance KBC and Dexia, have been trying to change the remuneration schemes, because it is important for an organization to