The Impact of Corporate Social Responsibility (CSR) on Bank Reputation and Financial Performance (Case study: Iranian banks)
Banks and financial institutions play a significant role in the economy by facilitating the transfer of resources between lenders and borrowers. This article is an endeavor to map the corporate social responsibility (CSR) practices of major players in the Iranian banking sector and to find out the impact of such practices on their performance and image. This study examines the impact of CSR on bank reputation and financial performance. This research is based on a local sample of 24 private banks and financial institutions in Iran. We use a questionnaire for assessing reputation and for assessing performance we check bank income by their annual statements. The main hypotheses of research show the positive relationship between these indicators. The findings of the study suggest that banks in Iran have increased their CSR activities, which also have a positive impact on the performance of the business, apart from improving their reputation and goodwill.