Disentangling the influence of CSR initiatives on the performance of banking institutions

Abstract

This study aims to investigate the effects of different corporate social responsibilities (CSR) on the organizational performance of the banking sector. The target population of this study was bank employees working at various bank branches in Bangladesh. In this investigation, the data gathering procedure was conducted utilizing a Google Form distributed via email, accompanied by a cover letter, to facilitate participation among bank employees. The study collected data from the current bank employees of several banking institutions in Bangladesh. They were sent a survey invitation to participate, and after their approval, their responses were gathered. A five-point Likert scale was used to determine the item-wise questionnaire, with ‘1’ indicating ‘Strongly Disagree’ and ‘5’ indicating ‘Strongly Agree’. The final sample size was 263. Moreover, to evaluate the hypothesis, a 5% significance level and SPSS software were used to analyze the data for research purposes. The outcome of this study shows that internal and external CSR activities have a positive and significant impact on the organizational performance development of Bangladesh’s banking sector. These factors can account for 52.70% of the variability observed in forecasting the performance of bank organizations. External CSR initiatives (β = 0.318; t = 5.937) have the highest effect on a bank’s performance. Additionally, a substantial correlation coefficient (r = 0.436) is present between internal CSR and bank performance. This study might provide significant clues to the management committees of the banking sector that can severely influence a bank’s performance development.

Keywords

• bank employee
• banking sector
• external CSR
• internal CSR
• organizational performance