Corporate Social Responsibility and Firm Performance

Abstract

In recent decades, Corporate Social Responsibility (CSR) has received increased attention from both managers and academic. The growing trend of CSR has becomes an interesting challenge for companies and their management. The linkage between CSR and firm performance, however, has been a controversial issue among scholars. Hence, the study therefore investigate how CSR activities has an association with bank’s performances of the commercial banks in Nepal. The different theories are examined which support a possible linkage between CSR and firm performances. This research aim was to identify the current CSR practices of commercial banks in Nepal. The study was conducted using primary survey method. And the data were collected through structured questionnaire method. Data was collected from 187 respondent working at top six commercial banks of Nepal. Furthermore, it also analyzed the relationship among various bank performances like employee satisfaction, customer loyalty, reputation and profitability and four different dimension of Carroll’s CSR pyramid. Finally, it analyzed the impacts of CSR on various bank performances. This study used descriptive, correlation and multiple regression method to analyze the data. Descriptive analysis was used to determine the mean and standard deviation. Whereas, correlation was used to know the degree of association and direction of association among variables. Finally, multiple regression were used to determine the level of impact on performance by different dimensions of CSR. SPSS 22 version was used to analyze data and primary data were collected using questionnaires. The study found commercial banks were investing on CSR from the very beginning. Banks invest in CSR because there was positive degree of association with performances. Also, found CSR has significant positive impacts on performances.