Corporate social responsibility of commercial banks in Nepal : manager's perception and bank's performance

Abstract

This study explores manager ́s Corporate Social Responsibility (CSR) perceptions in commercial banks of Nepal, examines bank ́s actual CSR performances in the fiscal year 2011/12 and shows the association between manager ́s motive and CSR performances. Manager’s opinions are explored primarily on certain motives, as the reasons behind involving in CSR activities; implementation factors that influence the execution of CSR activities; and evaluation techniques that are using to evaluate the effectiveness of such activities in Likert scale. On the other hand, bank ́s CSR performances are measured using three major indicators- Environmental management, Responsible financial products and Social conduct. 16 variables in motive reasons and 21 indicators in CSR performances are used from the previous two CSR related researches of Brønn and Vidaver-Cohen (2009) and Scholtens (2009) respectively. By using some similar descriptive techniques form such researches, the responses and results are quantitatively figured out in this study. The association between CSR motives and CSR performances is tested using Pearson ́s product-moment correlation through SPSS. The descriptive results in motive levels are not much different than previous researches. The study shows that managers mainly involve in CSR activities to improve the image and concern for society ́s future while substantially disagre with the reason to avoid regulation. On the other hand, Banks concentrate in social conduct related activities, as CSR performances, preferably sponsoring and community involving leaving behind the investment in environmental protection related issues. Finally, the statistically insignificant relationship between these two main variables- CSR motives and CSR performances shows that some other factors can influence the execution  of  CSR  than  only  manager’s  willingness.