Investments in Corporate Social Responsibility and Its Effect on Financial Performance of Commercial Banks in Ethiopia

Corporate social responsibility (CSR) refer to Strategies Corporation or corporate conduct their business in a way that is ethical, society friendly and beneficial to environmental and community in terms of development. CSR activities have been associated with financial performance of organizations but this area has not been well touched by the researchers in Ethiopia particularly in banking business. The basic purpose of this research is to identify the effects of corporate social responsibility investment activities on financial performance of commercial banks in Ethiopia. Further, Financial performance was measured by net profits before taxes which are obtained from audited statements of comprehensive income from the year 2012 to 2016 and investment in CSR was measured using monetary spending on social activities in education, health and environmental aspects. To chase the above reason, 11 commercial banks are selected based on the availability of data on investments in Social activities from the total of 17 banks. This paper provides the impact on Investment in Social activities towards the growth of financial performance in the Ethiopian banking sector. Dr. Uvaneswaran .S .M | Mr. Hussien Fentaw Ayele"Investments in Corporate Social Responsibility and Its Effect on Financial Performance of Commercial Banks in Ethiopia" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-2 | Issue-1 , December 2017, URL: http://www.ijtsrd.com/papers/ijtsrd8261.pdf http://www.ijtsrd.com/management/accounting-and-finance/8261/investments-in-corporate-social-responsibility-and-its-effect-on-financial-performance-of-commercial-banks-in-ethiopia/dr-uvaneswaran-s-m