Assessment of the Impact of Corporate Social Responsibility on Financial Performance of the Banking Institutions: Case study of the National Microfinance Bank

Kilewela, Andrew Godfrey (2016) Assessment of the Impact of Corporate Social Responsibility on Financial Performance of the Banking Institutions: Case study of the National Microfinance Bank. Masters thesis, The Open University of Tanzania.

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Abstract

The study assessed the impact of corporate social responsibility on the financial performance of banking institution conducted at NMB: perception of the management, employees and customers having the notion that the corporate social responsibility initiative has been one of the factors which contribute the poor financial performance of the bank. In examining the study was guided by four specific objectives aimed at evaluating perception of the customers and employees on CSR, examining the behavioral factors influenced by the CSR to employees and to assess the relationship between CSR and financial performance of the NMB bank. The study employed not only a case study design but also quantitative and qualitative approach. Additionally because the study based on the perception the use of 100 respondents was seen to be justifiable, likewise the study finds the diversity of result from the perception of the customers and employees toward CSR and FP of the bank however the study discover that there was a positive strong relationship between CSR and net profit of the bank with the level of significance of (p<0.01) and the increase number of the customers with the level of significance of (p<0.007) size of equity with (p<0.01) and lastly the correlation of CSR was found on company’s assets with (p<0.007) using the company data from 2008-2013. For such result we may conclude that the poor financial performance of the bank has not only been contributed by the bank investment on CSR initiatives such as serving community, customers or employees because the bank use only 1% of its net profit on such projects but also other factors, if it is the bank intention to effective use the CSR as the means of financial source much has to be done as recommended.

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