The impact of corporate social responsibility and brand equity on financial performance: The case of banking employees

Abstract

The purpose of this paper is to test the impacts of corporate social responsibility (CSR) and brand equity on financial performance in the context of banking employees based on stakeholder theory. Surveys were administered on 344 employees of 29 jointed stock commercial banks in Mekong Delta. The collected data were analysed using statistic descriptions, Cronbach’s Alpha, exploratory factor analysis EFA, confirmatory factor analysis CFA and structural equation modelling SEM. The results showed that the employee’s perception of three CSR dimensions (employee, customer and shareholder) has effects on financial performance. Employee dimension, legal and ethical requirement dimension and shareholder dimension have positive effects on brand equity, and in return brand equity has positive effect on financial performance. However, these effects can be direct or indirect. Based on empirical findings, this study suggests some implications for banks to implement CSR activities successfully to enhance brand equity as well as financial performance.

Keywords

• giá trị thương hiệu hiệu quả tài chính
• ngân hàng
• trách nhiệm xã hội