CORPORATE GOVERNANCE AND SOCIAL RESPONSIBILITY IN THE BANKING SECTOR IN MOZAMBIQUE

Abstract

This article explores the relationship between corporate governance and social responsibility in the banking sector in Mozambique, highlighting the importance of these practices for the sustainability and development of financial institutions. By addressing key definitions and concepts, as well as practical examples from the Mozambican context, the article emphasizes the positive change occurring in Mozambique. The present article examines the interrelation between corporate governance and social responsibility in the banking sector in Mozambique, stressing the importance of adopting effective practices that promote transparency and ethics in financial operations. In a context characterized by institutional fragility and distrust in financial institutions, implementing robust governance structures becomes essential. The research explores the current practices of governance and social responsibility adopted by banks, identifying challenges and barriers to their effectiveness. Among the main difficulties are the lack of transparency, insufficient capacity building, a fragile regulatory environment, and corruption. The article argues that corporate social responsibility (CSR) not only helps mitigate socio-economic inequalities but also positions banks as agents of positive change in society. Furthermore, the research reveals that integrating CSR into corporate strategies can yield significant benefits for both financial institutions and the communities in which they operate. The study concludes with recommendations for improving governance and CSR practices in the banking sector, emphasizing the need for a stronger commitment from institutions to ethics and transparency, as well as greater stakeholder involvement in corporate decisions. Thus, the article contributes to a deeper understanding of the role of banks in the sustainable development of Mozambique.