Corporate Social Responsibility and Financial Performance Linkage: Evidence from the Banking Sector of Bangladesh

The main objective of this paper is to examine the nature of relationship between corporate social responsibility (CSR) and corporate financial performance (CFP). In doing so we have summarized the findings of the empirical studies, drawn the conceptual framework, measured CSR by developing a measure of corporate social performance (CSP) and finally made an investigation on the banking sector of Bangladesh. The results of the study revealed that the average return on asset ratios of the banks having high CSP is higher compared to that of the banks having low CSP, though this could not be proved statistically. However, we should not write off the possibility of this linkage and continue the study. In this respect, the CSR status measured in this study would serve as an important benchmark for further studies.

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