scholarly journals The Impact of Corporate Social Responsibility Practice on Financial Performance of Banking Industry: Case Study: East African Commercial Banks

2018 ◽  
Vol 21 (12) ◽  
pp. 1-7 ◽  
Author(s):  
Hussein Abdi Mohamud
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Commercial Banks ◽  
Banking Industry ◽  
East African ◽  
Corporate Social Responsibility Practice ◽  
Corporate Social ◽  
The Impact

The impact of corporate social responsibility (CSR) knowledge on corporate financial performance: evidence from the European banking industry

2019 ◽  
Vol 23 (1) ◽  
pp. 110-134 ◽  
Author(s):  
Francesco Gangi ◽  
Mario Mustilli ◽  
Nicola Varrone
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Banking Industry ◽  
Content Type ◽  
External Stakeholders ◽  
Citizenship Performance ◽  
European Banking ◽  
Corporate Social ◽  
The Impact

PurposeAssuming that corporate social responsibility (CSR) is “a process of accumulating knowledge and experience” (Tang et al., 2012, p. 1298), this paper aims to investigate whether and how CSR knowledge (Asif et al., 2013; Kim, 2017) affects financial performance in the European banking industry.Design/methodology/approachThe empirical research analyses a panel of 72 banks from 20 European countries over seven years (2009-2015). The hypotheses were tested using fixed effects regression analysis and the two-stage Heckman model (1976) to address endogeneity bias.FindingsThe findings of this work are twofold. First, consistent with the concept of knowledge absorptive capacity (Cohen and Levinthal, 1990), the internal CSR of banks (Kim et al., 2010) positively affects citizenship performance (Peterson, 2004a). Second, in line with the reputational effect of CSR (Margolis et al., 2009; Bushman and Wittenberg-Moerman, 2012), citizenship performance is a positive predictor of a bank’s financial performance.Practical implicationsFrom a knowledge-based perspective, the analysis shows that accrued internal CSR knowledge plays a key role in implementing effective CSR programs for external stakeholders. Moreover, this study shows how CSR engagement in external initiatives can improve a bank’s competitiveness because of the relationship between citizenship performance and the positive reputation of a bank.Social implicationsThe management of CSR initiatives may favor the sharing of knowledge and creation of trust relationships among banks and internal and external stakeholders. CSR knowledge contributes to expanded value creation for both society and banks.Originality/valueThe knowledge management perspective of CSR provides new insights into the sustainability of banks’ business models and contributes to advancing the debate on the governance modes and effects of CSR. Moreover, the CSR perspective offers additional opportunities for addressing the challenges associated with sharing tacit knowledge within and outside of organizations.

The Impact of Corporate Social Responsibility (CSR) on Bank Reputation and Financial Performance (Case study: Iranian banks)

2020 ◽  
Vol 1 (1) ◽  
pp. 1-6
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Banking Sector ◽  
Positive Impact ◽  
Financial Institution ◽  
Private Banks ◽  
Corporate Social ◽  
The Impact

Banks and financial institutions play a significant role in the economy by facilitating the transfer of resources between lenders and borrowers. This article is an endeavor to map the corporate social responsibility (CSR) practices of major players in the Iranian banking sector and to find out the impact of such practices on their performance and image. This study examines the impact of CSR on bank reputation and financial performance. This research is based on local sample of 24 private banks and financial institution in Iran. We use a questionnaire for assessing reputation and for assessing performance we check bank income by their annual statements. The main hypotheses of research show the positive relationship between these indicators. The findings of study suggest that banks in Iran have increased their CSR activities, which also have a positive impact on performance of the business, apart from improving their reputation and goodwill.

scholarly journals Corporate Social Responsibility on Financial Performance: A Study of the Bangladeshi DSE Listed Private Commercial Banks

2020 ◽  
Vol 4 (4) ◽  
pp. 3-12
Author(s):  
Fatima Saki
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Commercial Banks ◽  
Stock Exchange ◽  
Sampling Technique ◽  
Simple Random Sampling ◽  
Return On Equity ◽  
Corporate Social ◽  
The Impact

The fundamental purpose of the study is to examine the impact of corporate social responsibility (CSR) on the financial performance (FP) of Private Commercial Banks (PCBs) in Bangladesh. The study uses a simple random sampling technique. Ten (10) PCBs are selected as samples for the study from the Dhaka Stock Exchange (DSE) listed companies. Statistical analysis tools such as regression, analysis of variance (ANOVA), and correlation are applied to collected data to examine CSR's impact on selected banks' financial performance. In the study, net profit after tax (NPAT), earnings per share (EPS), net asset value per share (NAVPS), return on assets (ROA), return on equity (ROE), and market value per share (MVPS) are considered as dependent variables and the independent variable, corporate social responsibility (CSR). The findings reveal that the EPS, NAVPS and MVPS of the selected banks are significantly influenced by CSR 56.4, 62.0, and 59.8 percent, respectively. In contrast, CSR has an insignificant relationship with NPAT, ROA, and ROE. The study also indicates a high degree positive and statistically significant correlation between CSR and financial performance (EPS, NAVPS, and MVPS). CSR influences financial performance essentially, so considering social benefits, the banks should perform CSR activities emphasizing educational, environmental, and health issues.

scholarly journals Do Corporate Social Responsibility Disclosures Improve Financial Performance? A Perspective of the Islamic Banking Industry in Pakistan

2020 ◽  
Vol 12 (8) ◽  
pp. 3302 ◽  
Author(s):  
Zia Ur Rehman ◽  
Muhammad Zahid ◽  
Haseeb Ur Rahman ◽  
Muhammad Asif ◽  
Majed Alharthi ◽  
...  
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Least Squares ◽  
Banking Industry ◽  
Ordinary Least Squares ◽  
Global Reporting Initiative ◽  
Islamic Banking ◽  
Corporate Social ◽  
The Impact

This study aims to investigate the impact of corporate social responsibility disclosures (CSRD) on the financial performance of the Islamic banking industry of Pakistan. The study employed the method of content analysis for collecting the required data from annual reports of all four full-fledged Islamic banks operating in Pakistan from 2012 to 2017. The study developed a novel comprehensive CSRD index by using the “Global Reporting Initiative” (GRI) and “Accounting and Auditing Organization of Islamic Financial Institutions” (AAOIFI). This index consists of five dimensions and 105 sub-dimensions of CSRD. The use of Ordinary Least Squares (OLS), Panel Corrected Standard Errors (PCSEs), and Generalized Least Squares (GLS) using random-effect (RE) and fixed-effect (FE) estimators revealed a significant negative relationship between CSRD and the financial performance of the sample firms. Regarding separate dimensions, the relationship of the Environmental and Economic dimensions of CSRD is significantly positive with current performance, but it is insignificant for the relationships of Legal, Philanthropic, and Ethical dimensions of CSRD with the current financial performance. In addition to contributing to the scarce literature in the Islamic banking industry of a developing country like Pakistan, the study will also help the policymakers and other stakeholders, including the AAOIFI, to develop a comprehensive CSRD policy or index and further improve the already established standards for CSRD.

Comparative analysis of QISMUT+3’s Islamic corporate social responsibility

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Agung Nur Probohudono ◽  
Astri Nugraheni ◽  
An Nurrahmawati
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Statistical Testing ◽  
Content Type ◽  
Islamic Bank ◽  
Csr Disclosure ◽  
Corporate Social ◽  
The Impact ◽  
Positive Effect

Purpose The purpose of this study is to analyze the impact of corporate social responsibility (CSR) disclosure on the financial performance of Islamic banks across nine countries as major markets that contribute to international Islamic bank assets (Indonesia, Malaysia, Saudi Arabia, UAE, Kuwait, Qatar, Turkey, Bahrain and Pakistan or further will be called QISMUT + 3 countries). Design/methodology/approach Islamic Social Reporting Disclosure Index (ISRDI) is being used as a benchmark for Islamic bank CSR performance that contains a compilation of CSR standard items specified by the Accounting and Auditing Organization for Islamic Financial Institutions. The secondary data is collected from the respective bank’s annual reports and it used the regression analysis techniques for statistical testing. Findings This study found that CSR disclosure measured by ISRDI has a positive effect on financial performance. Almost all ISRDI sub-major categories have a positive effect on financial performance except the “environment” subcategory. The highest major subcategory for ISRDI is the “corporate governance” category (82%) and the “environment” category (13%) is the lowest. For the UAE, Kuwait and Turkey, the ISRDI is positively affected by financial performance and the other countries on this research are not. Originality/value This study highlighted the economic benefits of social responsibility practices as a part of business ethics in nine countries that uphold the value of religiosity. Thus, the development of the results of this research for subsequent research is very wide open.

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