Corporate Social Responsibility and Performance of Nigerian Banks: A Quantitative Approach

Abstract

This study examines the impact of the aspects of corporate social responsibility (CSR) on the performance of Nigerian Banks with specific references to three commercial banks, including Zenith Bank, First Bank and Access Bank. Secondary data such as annual financial reporting on contribution education, ecological sustainability, healthcare, transportation services, and contributions to Covid-19 relief from 2019 to 2022 were used to analyse with the help of PPMCC and linear regression. The results show that individuals and combined CSR efforts, including education, environmental tolerance, charities, charities, transportation services, healthcare and support for Covid-19-AID products, have all impacts on the financial performance of Nigerian banks. This underscores the diverse advantages that Nigerian financial institutions have derived from their engagement in CSR undertakings, particularly in the face of challenges brought about by the COVID-19 pandemic. The study concludes that CSR initiatives can play a significant role in improving the financial performance of Nigerian banks. Banks should therefore make CSR a priority and invest in initiatives that are aligned with their business goals and the needs of their stakeholders. As a result, the study suggests that it is essential for banks to continue and actively participate in socially responsible initiatives. This approach can prove attractive to investors who place significance on corporate social responsibility.