Citation:Chamali, J.G.W.V. and Sujeewa, G.M.M. 2016. The Relationship between Corporate Social Responsibility and Financial Performance in Banking Sector in Sri Lanka. In Proceedings of the Undergraduates Research Conference - 2016, 11th January 2017, Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka.
Date:2016
Abstract:
The relationship between corporate social responsibility (CSR) and
financial performance is an oppressive problem faced by all business
organizations. There are numerous studies supporting for different type
of relationships ranging from positive to negative. The purpose of this
study is to examine the relationship between corporate social
responsibility (CSR) and financial performance in domestic commercial
banks in Sri Lanka. The researcher selected six high performance
domestic commercial banks as a sample for a period of five years
starting from 2011 to 2015. CSR disclosures and firm size have been
identified as independent variables and financial performance identified
as the dependent variable in this study. The researcher has used
secondary data for the purpose of analysis. This study employed return
on equity to identify the financial performance (FP), GRI index G3
guidelines to identify the CSR disclosure level of the banks and firm
size measured by logarithm of total assets of the banks. Through the
result of the research it has been concluded that there is a positive
relationship between Corporate Social Responsibility and financial
performance of selected domestic commercial banks. Further researcher
has identified that Financial Performance will not be totally depended
on CSR and control variable of firm size.
