Impact of Corporate Social Responsibility on Firm's Financial Performance

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Date

2012-06

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A.A.U

Abstract

Over the past decade, sustainability has emerged as one of the foremost issues faced by corporations across all sectors and corporate social responsibility has gained much momentum in the past two decades. This research investigates whether corporate socia I responsibility has an impact on the financial performance of in selected banks in Ethiopia. The aim was to ascertain whether or not a correlation exists between CSR and financial performance of Ethiopian banking sector. This paper specifically investigates the relationship between the financial performance and corporate social responsibility on lhe banking sector using an empirical approach from a compiled panel data. The findings reveal that there are observable differences in the financia l performance of firms for a positive corporate social responsibility. The findings also reveal that all the data's fo llow the third hypothesis which dictates that there is a positive relationship between the two variables. The research has opened up the avenue for future stud ies to investigating the purported link between CSR and financial performance in the context of emerging economies like Ethiopia. Key Words: - Corporate Social Responsibility

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Keywords

Corporate Social Responsibility, Financial Performance

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