Cooperative Banking for A Sustainable Social Economy: Insights From Italy

  • Authors

    • Binu Peediyeckal Devassia Department of Management Studies Periyar Maniammai Institute of Science and Technology, Thanjavur, Tamil Nadu, India
    • Sathyapriya Janarthanam Department of Management Studies Periyar Maniammai Institute of Science and Technology, Thanjavur, Tamil Nadu, India
    • Emiljan Karma Research Centre on Developing Economies, Catholic University Our Lady of Good Counsel, Tirana, Albania
    • Mauro Gianfranco Bisceglia Department of Economics and Finance, State University of Bari “Aldo Moro”, Italy
    https://doi.org/10.14419/s148r532

    Received date: May 8, 2025

    Accepted date: May 28, 2025

    Published date: June 11, 2025

  • DEA Model; Social Efficiency; Social Accounting; Raiffeisen; Partnership for sustainability (SDG 17).

  • Abstract

    Purpose: This paper aims to assess the dual objective of financial and social efficiency with a focus on Raiffeisen Cooperative Banks in Italy.

    Method: An input-oriented Data Envelopment Analysis was used to estimate efficiency scores for each Raiffeisen Cooperative Bank. In the second stage, a regression analysis is performed to relate efficiency scores to factors that investigate their influence on relative efficiency in terms of both financial performance and social impact.

    Findings: The study's findings revealed significant inefficiencies from a social perspective, while financial efficiency is generally strong, there is room for improvement in social efficiency.

    Implications: Cooperative banks are crucial in promoting social well-being and sustainable development by aligning operations with the Sustainable Development Goals (SDGs). A commitment to social impact should represent a strategic priority, not merely stated in principle but operationalized through measurable and accountable indicators. Raiffeisen Cooperative Banks should harness technological innovations to elevate the effectiveness of their commercial activities. At the same time, they need to use these advancements to maintain and strengthen client relationships across both digital and face-to-face channels, ensuring they remain responsive to the social dynamics and specific needs of the local communities they serve.

    Originality: The novelty of this research lies in its focus on a socio-economic sector in Italy that has not yet been studied in its dual dimensions. To the best of the authors' knowledge, this is the only study that examines the social impact - and consequently the mission coherence - of Raiffeisen Cooperative Banks, emphasizing the importance of the social mission in the sustainable development promoted by the cooperative banking system.

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  • How to Cite

    Peediyeckal Devassia, B., Janarthanam , S. ., Karma, E., & Bisceglia, M. G. (2025). Cooperative Banking for A Sustainable Social Economy: Insights From Italy. International Journal of Accounting and Economics Studies, 12(2), 121-129. https://doi.org/10.14419/s148r532