Relationship Between Baisnk Characteristics and Corporate Social Responsibility in Joint Venture Commercial Bank of Nepal

Abstract

This study aimed at finding Relationship between bank characteristics and CSR. The descriptive and analytical research design has been used for this study. This study is based on primary data .Primary data and information has been collected through questionnaires. There was taken 140 as a sample from seven joint venture commercial banks. The sample data of seven joint venture commercial banks have been analysis using regression model. In this study arithmetic mean, Frequency analysis, standard deviation, correlation, regression and multiple regression analysis has been used by using SPSS(statistical package for social science) and excel. Community oriented CSR activities, environment oriented CSR activities and total / combined CSR activities of joint venture commercial bank of Nepal were dependent variables while bank age , bank size and bank profitability have been taken as independent variable.

The age of the bank is computed from the date of establishment until the current year, similarly the size of the bank determined based on the core capital and profitability measured according to ROA.

In general, the result suggests that Nepalese banks have performs more community oriented CSR activities than other types of CSR. Bank size is found to be significant, and it is a positive predictor to the extent of environmental and overall CSR activities may be due to industry effects. Bank age is found to be significant and negative to the extent of community, environment as well as combined CSR activities in the Nepalese joint venture commercial banks. From the findings, it can be concluded that within the Nepalese joint venture commercial banks, age does not matter in CSR. Profitability is found to be significant, and it is a positive predictor to the extent of community oriented CSR activities. Thus, it can be concluded that more profitable banks disclose more CSR information than less profitable banks. Overall, the employee’s perception is CSR means relationship of business with society and environment. The joint venture commercial bank mainly adopt CSR program to improving relations with institutions of bank. Therefore, the investment in CSR could be beneficial to all stakeholders, which minimizes the social risk. Finally, the findings suggest that Nepalese joint venture commercial banks performed all aspect of CSR activities. The findings are, thus, beneficial for future study as well as to the banking authorities to assess the level of CSR made in their best in future.