Authors : Mohammad Zahir Raihan, Rosni Bakar and Md. Aminul Islam
Abstract: The study mainly examines the impact of Corporate Social Responsibility (CSR) expenditures on financial performance of Islami Bank Bangladesh Ltd. (IBBL). The study then attempted to scrutinize the responsibility of the bank authority to various interest groups to assess the performance of CSR activities to analyze the performances in terms of ROE (Return on Equity) and DPE (Deposit per Employee) and to measure the impact of CSR expenditures on bank profitability and productivity. The study covers IBBL and a period of 5 years ranging from 2008-2012. Secondary data are collected from the annual reports of the bank. The study found that disaster management, education, health, sport, art and culture, environment and other activities have negative correlation with ROE but positive correlation with DPE. It is further found that these factors have influenced to the extent of 35.3% variations in ROE and 11.2% variation in DPE. The study concludes that the bank authority should invest more in CSR expenditures in order to improve the DPE of the bank.
Mohammad Zahir Raihan, Rosni Bakar and Md. Aminul Islam, 2015. Impact of Corporate Social Responsibility (CSR) Expenditures on Financial Performance of Islami Bank Bangladesh Ltd.. The Social Sciences, 10: 171-177.