Financial services institutions’(FSIs’) potential influence over their network of commercial clients can arguably be used to influence global sustainability, not only on a whole‐scale basis but also immediate. This paper investigates FSIs’ understanding of the corporate social responsibility (CSR) concept, and their motivations for CSR reporting. A thematic analysis of interview transcripts with decision‐makers from two banks, one insurance institution, and two expert stakeholders uncovers an espoused understanding of CSR that is broad, but the aspect of indirect impacts is not given sufficient priority despite the potential holistic effect on society and the environment. The findings do not bode well for substantive systemic change considering FSIs’ latent potential for influencing economic, social and environmental issues through the indirect impacts of their core business products and services. This paper serves to challenge thinking about CSR and CSR reporting held by reporters from FSIs. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment.