Corporate Social Responsibility and Financial Performance of Business: A Perspective of Selected Retail Sector MSEs in Bangladesh

Though intangible in nature, Corporate Social Responsibility (CSR) is increasingly becoming a necessary requirement for firms in the retail business sector in Bangladesh. The Micro and Small Enterprises (MSE�s) represent a large percentage of the corporate arena of the developing countries, but they do not have adequate attention. Bangladesh is a remarkable country at the present world�s growing economy that has already met several targets of MDG�s and now on the way to achieve the targets of SDG�s. Bangladesh has made strong progress over recent years, reducing poverty and growing the economy by about 7.11 % each year in which MSEs has a great contribution through retail business by incorporating 25 percent of NGDP and employing about 40 percent of the total civilian workforce, 85 percent of industrial jobs, 89 percent of total export earning& 25 percent of total labor force. The study has applied descriptive research design with quantitative approach to determine the extent of each factor in analysis. The sample size of the study was 40 respondents from the 250 target populations. Data was collected through close- ended questionnaire with five-point Likert-scaling instruments. Data was analyzed by using descriptive analysis (means and standard deviation) and multiple regression analysis. The study found that performing CSR activities has great influence on financial performance of business respect to selected retail sector MSEs in Bangladesh. The coefficient of determination (Adjusted R2=0.635) showed that 63.5 % of the success recorded in the MSEs financial performance of business accounted for performing of CSR activities in Bangladesh.