The Relationship between CSR and Banks' Financial Performance: Evidence from Turkey
Purpose: To analyze the bidirectional relationship between CSR practices of Turkish banks and their financial performance, which is proxied by ROE, ROA and NIM for the year 2013.
Originality/value: The paper focus on the changing nature of the Turkish banks which face greater competition and their attempts at practicing CSR
Design/methodology/approach: The study uses content analysis to analyze the degree of CSR on a CSR index and uses regression analysis to determine the link between performance and CSR
Findings: The results show that ROA and ROE have no explanatory power over CSR, whereas there’s a bi-directional relationship between CSR and NIMs. The banks seem like charging the costs of the CSR practices from their customers
Research limitations/implications: The research is limited to a single year
Social implications of study: The regulatory bodies should monitor the prices of the banks that have CSR practices
Tam metin:PDF (English)
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Appendix-The Grading for CSR Practices
CSR Information Economic
Economic Performance Market Presence
Indirect Economic Impacts Average Materials Energy Water Biodiversity
Emissions Effluents Waste
Products Services Compliance Transport Overall
Labor Practice and Decent Work Social Employment Labor Management
Occupational Health Safety
Training and Education
Diversity Equal Opportunity Average
Investment Procurement Practices Non-Discrimination
Freedom of Association and
Collective Bargaining Child Labor
Forced and Compulsory Labor Security Practices
Indigenous Rights Average Community Corruption Public Policy
Anti-Competitive Behavior Compliance Average
Product and Service Labeling
Marketing Communications Compliance Average