Abstract:
The purpose of this study was to investigate the effects of corporate social responsibility (CSR) on
the financial performance of Cooperative Bank of Oromia Share Company. An explanatory
research design, which involved quantitative and qualitative research approach, was employed.
The study was based on primary data collected from census or 77 respondents selected by non probability sampling. In addition to this, key informant interview was also made from higher
officials of banks to compare with the quantitative regression result. The collected data were
analyzed by IBM SPSS Version 23 statistical software program. A descriptive statistics like
frequency, percentage, mean and standard deviation were used to summarize the data collected on
the effects of corporate social responsibility (CSR) on the financial performance of Cooperative
Bank of Oromia Share Company. A Multiple linear regression was used to summarize the data
collected on the effects of corporate social responsibility (CSR) on the financial performance of
Cooperative Bank of Oromia Share Company. The result of the study showed that community
aspect of CSR, employee aspect of CSR, customers Aspect of CSR are positively and significantly
influenced financial performance of cooperative bank of Oromia share company. The findings
indicate that CSR activities focused on employees such as training programs, welfare, and
equitable promotion practices significantly enhance the bank's financial performance. The study
concluded that the effects of corporate social responsibility on bank’s financial performance not
satisfactory. It is recommended that banks should improve their efforts exerted towards their CSR
practice in order to enhance the financial performance of the bank.
