The Role of Corporate Social Responsibility (CSR) in the Egyptian Banking Sector
18 Pages Posted: 3 Mar 2013
Date Written: March 3, 2013
Abstract
Given the global recognition of Corporate Social Responsibility (CSR) of the financial institutions in developed countries and the lack of interest in the relevance of this concept in Egypt, it is essential to investigate the relation between Corporate Social Responsibility and Financial Performance (i.e. CSR-FP link) in the Egyptian banking sector. This paper explores, empirically, this association. The results imply a negative and statistically significant relationship between CSR-dimensions and banks’ profitability. This empirical evidence is consistent with the neoclassical economists’ point of view that practicing CSR by an organization is associated with competitive disadvantages.
Keywords: Corporate Social Responsibility (CSR), Egypt, Banking Sector, Profitability
JEL Classification: E50, G0
Suggested Citation: Suggested Citation