The Effects of Corporate Social Responsibility on Market Performance in The Case of Commercial Bank of Ethiopia
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Date
2025-06-01
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A.A.U
Abstract
The study entitled effect of corporate social responsibility on market performance in the case of commercial bank of Ethiopia. The main objective of the study was to evaluate the effect of Corporate Social Responsibility on Market Performance at CBE. To do this, the researcher used explanatory research design and quantitative research approach. A total of 306 questionnaires were distributed to respondents and 296 of them were completed properly and returned and finally the study used descriptive statistics and inferential statistics (Pearson correlation and multiple linear regression analysis) to determine the effect of CSR on market performance. The data analyzed using SPSS version 27. This study employed the corporate social responsibility dimensions such as Philanthropy, Community Engagement, Ethical Labor Practices, and Environmental Sustainability as predictor variables and used market share as metrics for the explained variables of market performance. The finding reveals that all corporate social responsibility dimensions had a positive and significant impact on market performance. Additionally, the multiple linear regression analysis revealed that 55% of the variation in market performance can be attributed to Philanthropy, Community Engagement, Ethical Labor Practices, and Environmental Sustainability. The remaining 45% were other factors that restricted CBE’s market performance, which are not included in the study model. Based on the finding, the researcher recommends that CBE needs to develop a comprehensive and integrated CSR strategy dealing with four variables (philanthropy, community engagement, labor ethical practice and environmental sustainability practice of CSR).
Key words: - philanthropy, community engagement, labor ethical practice, environmental sustainability and market performance