A Corporate Social Responsibility Analysis of Payday Lending

33 Pages Posted: 29 Sep 2017

See all articles by Chris Robinson

Chris Robinson

York University - School of Administrative Studies

Mark Schwartz

York University - Atkinson School of Administrative Studies

Multiple version iconThere are 2 versions of this paper

Date Written: May 2017

Abstract

We conclude based on our analysis that the payday loan industry appears to be, at present, an example of what Schwartz and Carroll (2003, pp. 513-514) label as an “economic/legal” industry, as it appears to focus only on maximizing profit and shareholder value while sometimes falling within the legal domain but clearly outside the ethical domain. Our CSR assessment and the evidence we present supports the case for additional government regulation. Another more extreme public policy alternative is to ban payday lending altogether, which as indicated has already been enacted across several jurisdictions. The evidence provided above provides considerable support for a ban, given the current lack of appropriate CSR practices of the industry and the apparent absence of proper self-regulation.

Keywords: Payday Lending, Alternative Financial Services, Fringe Banks, CSR

JEL Classification: G18, M50

Suggested Citation

Robinson, Chris and Schwartz, Mark, A Corporate Social Responsibility Analysis of Payday Lending (May 2017). Available at SSRN: https://ssrn.com/abstract=3044087 or http://dx.doi.org/10.2139/ssrn.3044087

Chris Robinson (Contact Author)

York University - School of Administrative Studies ( email )

Toronto, Ontario M3J 1P3
Canada

Mark Schwartz

York University - Atkinson School of Administrative Studies ( email )

Toronto, Ontario M3J 1P3
Canada

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