The effect of corporate social responsibility practices on the firm’s reputation and performance: evidence from the listed licensed commercial banks in Sri Lanka

Abstract

This study is aimed to examine the effects of Corporate Social Responsibility practices on the firm’s reputation and performance. This study used listed licensed commercial banks in the Sri Lanka context. This study has used corporate social responsibility dimensions such as employee satisfaction and customer satisfaction. The data is collected from the annual reports of listed licensed commercial banks in Sri Lanka, employees who work in listed licensed commercial banks in Sri Lanka and customers who consume banking facilities in listed licensed commercial banks in Sri Lanka. The data is collected from a structured questionnaire as a primary data source. The study examined a sample from Sri Lankan-listed licensed commercial banks covering the period of 2012–2021. The regression analysis and descriptive statistics are absorbed for analyzing data using SPSS software and EViews software. Days in the present, corporate social responsibilities are the most talkative concept in the world. According to the Covid-19 pandemic situation, CSR is considered the main concept of an entity. Recently banks are used CSR practices to improve their performance and the reputation of the company through the attention of the customers and their employees. Company reputation is the most important factor to improve the level of customers. There is no significant and appropriate evidence regarding the effects of Corporate Social Responsibility practices on the firm’s reputation and performance Sri Lankan commercial banking industry. According to previous studies, there are four approaches to CSR that have been specified inactive, reactive, active and proactive. This research will be used this model to identify the relationship between CSR practices and firms’ performance and reputation. The findings of the study would be useful to the policymakers, potential investors and different types of other stakeholders in the banking industry.