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CSR firms have triggered, in the past decade, a strong interest among researchers and professionals alike. The awareness of their value to the social order has resulted in an increasing pressure on policymakers to establish legislative frameworks likely to ensure their sustainability.

Several authors emphasize the "social responsibility" of banks in providing financing to CSR firms. They lay it down in the form of an ethical obligation justified by their access to a large and exclusive pool of funds. However, the banking industry pinpoints difficulties related to the identification of firms’ risks associated with the implementation of CSR policies and their impact on the fund allocation decision-making process. This constraint, combined with a lack of visibility regarding the impact of CSR practices on the firm as one of several components of idiosyncratic risk, prompted us to question the state of the literature's findings.

This article aims to articulate the tendencies within the literature related to the identification of the firm’s risk that results from the implementation of CSR policies and their related impact on banks' financing. Precisely, we strive to identify the impact of firms’ internal CSR policies on banks’ perceptions of their idiosyncratic risk.  In an attempt to approach the research question, we will go over the major positions, as laid out by the literature, before isolating the relationship between the implemented CSR policies and the perceived credit risk from the banking industry perspective. The findings converge towards a positive impact of firms' CSR policies on their risk level bank rating.