Effect of Corporate Social Responsibility Practice on Bank Profitability (In Case of Hibret Bank) Ethiopia
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Date
2025-01-14
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A.A.U
Abstract
This study investigated the effect of Corporate Social Responsibility (CSR) practices on bank profitability, focusing on Hibret Bank. An explanatory research design was employed to explore the cause-and-effect relationship between CSR initiatives and profitability. The target population comprised 548 employees and management personnel involved in CSR activities at Hibret Bank, from which a sample of 231 participants was selected using stratified random sampling. Data were collected via questionnaires designed to assess CSR practices across four key dimensions: environmental responsibility, social responsibility, economic responsibility, and philanthropic activities. The reliability of the research instrument was tested using Cronbach’s alpha, while the relationship between CSR practices and profitability was analyzed using Pearson correlation and multiple linear regression. Data were analyzed with SPSS version 27.0. The findings provided valuable insights into the role of CSR practices in enhancing bank profitability. The study offered recommendations for Hibret Bank to strengthen its CSR strategies, particularly in environmental and social responsibility, to improve its profitability.
Keywords: Corporate Social Responsibility, Environmental Responsibility, Social Responsibility, Economic Responsibility, Philanthropic Activities, Bank Profitability.