Published Online:August 2024
Product Name:The IUP Journal of Bank Management
Product Type:Article
Product Code:
Author Name:Queenter Mawinda and Omary Swalehe
Availability:YES
Subject/Domain:Finance
Download Format:PDF
Pages:20
This paper assesses the impact of corporate social responsibility (CSR) practices on bank financial performance with reference to NMB Bank, Tanzania. The paper studies the effects of environmental, economic and philanthropic CSR practices on bank financial performance. The study used non-probability and purposive sampling techniques to select a sample of 100 respondents using both qualitative and quantitative research approaches, and the data was analyzed using statistical package for social sciences (SPSS). The findings confirm that CSR engagement positively influences banks’ revenue collection and that banks more engaged in CSR practices outperform those less engaged. The findings also reveal that environmental, economic and philanthropic CSR practices significantly and positively impact bank’s revenue collection. It is hence recommended that financial institutions integrate and align CSR strategies with their institutional strategy and engage in CSR practices to increase their earnings.
The nature and scope of corporate social responsibility (CSR) has been evolving over the years. According to Pedersen (2015), the Industrial Revolution resulted in wealth creation, power struggles, and gaps between the poor and rich. Before the Industrial Revolution, the companies’ decision-making processes were mostly controlled by one person, the founder of the company. Hence, there was no clear boundaries between individuals and companies in the early CSR. It was mostly called social responsibility rather than CSR.