Effect Of Corporate Social Responsibility On Bank Performance; The Case Of Dashen Bank

Abstract

In the increasingly competitive banking sector, corporate social responsibility (CSR) has become a crucial driver of sustainable performance, particularly in emerging economies like Ethiopia. This study examined the effects of economic, ethical, legal and philanthropic CSR responsibilities on the performance of Dashen Bank, Ethiopia. Utilizing a mixed-methods approach, both quantitative and qualitative data were collected from primary sources. A simple random sampling technique was employed to select 298 respondents from various departments within Dashen Bank, ensuring representation across the organization. Questionnaires were used to gather socioeconomic data, and semi-structured interviews were conducted with key bank personnel to explore qualitative insights. Quantitative data were analyzed using descriptive statistics and multiple linear regression, revealing that economic (β = [-.002], p < [.000]), ethical (β = [.047], p < [.000]), legal (β = [.006], p < [.000]), and philanthropic (β = [.009], p < [.000]) CSR dimensions each had a positive and statistically significant impact on bank performance. Qualitative data from interviews were analyzed thematically, complementing the quantitative findings by providing context and depth to the observed relationships. The study confirms a strong link between CSR and bank performance, indicating that prioritizing economic, ethical, legal and philanthropic responsibilities leads to enhanced organizational outcomes. Based on these findings, the study recommends that Dashen Bank: (1) Develop targeted community engagement programs that align with the bank's core competencies, such as financial literacy workshops and small business development initiatives; (2) Implement a formalized ethical code of conduct with regular training and monitoring to ensure consistent adherence across all levels of the organization; (3) Proactively address environmental concerns by adopting sustainable operational practices, such as reducing paper usage and investing in renewable energy sources. These actionable strategies will strengthen Dashen Bank's CSR initiatives and further enhance its performance while contributing to the well-being of the community and environment."