IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v12y2020i4p1621-d323485.html
   My bibliography  Save this article

Relationship among CSR Initiatives and Financial and Non-Financial Corporate Performance in the Ecuadorian Banking Environment

Author

Listed:
  • Ana Belen Tulcanaza-Prieto

    (Department of Business Administration, Kumoh National Institute of Technology, Gumi 39177, Korea)

  • HoKyun Shin

    (Department of Business Administration, Kumoh National Institute of Technology, Gumi 39177, Korea)

  • Younghwan Lee

    (Department of Business Administration, Kumoh National Institute of Technology, Gumi 39177, Korea)

  • Chang Won Lee

    (School of Business, Hanyang University, Seoul 04763, Korea)

Abstract

This study explores the relationship between corporate performance and corporate social responsibility (CSR) initiatives in the Ecuadorian banking environment. The first model employs both return on assets and return on equity as proxy for the financial performance while the second model includes the non-financial corporate performance constructs collected by a self-designed online questionnaire. We found a statistically positive relationship among CSR initiates and the financial and non-financial indicators in corporate performance. Our findings revealed that economic, legal, ethical, and philanthropic responsibility initiatives positively affect the non-financial corporate performance of the Ecuadorian banking environment. Similarly, the non-financial corporate performance is significantly positively influenced by the customer’s brand trust, customer’s brand loyalty, customer’s perception of quality, and customer satisfaction. Study results are mostly consistent with the banking environment of other countries, especially in Bangladesh, Pakistan, and Lebanon. Customers of the Ecuadorian banking environment perceived banks as socially responsible entities and Ecuadorian banks invest resources in CSR activities as a corporate governance policy to increase their financial and non-financial performance. Future research should include a corporate governance index with a CSR component as an independent variable to increase statistical models’ power.

Suggested Citation

  • Ana Belen Tulcanaza-Prieto & HoKyun Shin & Younghwan Lee & Chang Won Lee, 2020. "Relationship among CSR Initiatives and Financial and Non-Financial Corporate Performance in the Ecuadorian Banking Environment," Sustainability, MDPI, vol. 12(4), pages 1-16, February.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:4:p:1621-:d:323485
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/12/4/1621/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/12/4/1621/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Sallyanne Decker & Christopher Sale, 2009. "An Analysis of Corporate Social Responsibility, Trust and Reputation in the Banking Profession," Springer Books, in: Samuel O. Idowu & Walter Leal Filho (ed.), Professionals' Perspectives of Corporate Social Responsibility, chapter 0, pages 135-156, Springer.
    2. Li, Zhichuan & Minor, Dylan B. & Wang, Jun & Yu, Chong, 2019. "A learning curve of the market: Chasing alpha of socially responsible firms," Journal of Economic Dynamics and Control, Elsevier, vol. 109(C).
    3. Wu, Meng-Wen & Shen, Chung-Hua, 2013. "Corporate social responsibility in the banking industry: Motives and financial performance," Journal of Banking & Finance, Elsevier, vol. 37(9), pages 3529-3547.
    4. Sergio Carvalho & Sankar Sen & Márcio Oliveira Mota & Renata Lima, 2010. "Consumer Reactions to CSR: A Brazilian Perspective," Journal of Business Ethics, Springer, vol. 91(2), pages 291-310, February.
    5. Giles Atkinson, 2000. "Measuring Corporate Sustainability," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 43(2), pages 235-252.
    6. S. Hansen & Benjamin Dunford & Alan Boss & R. Boss & Ingo Angermeier, 2011. "Corporate Social Responsibility and the Benefits of Employee Trust: A Cross-Disciplinary Perspective," Journal of Business Ethics, Springer, vol. 102(1), pages 29-45, August.
    7. Hongwei He & Yan Li, 2011. "CSR and Service Brand: The Mediating Effect of Brand Identification and Moderating Effect of Service Quality," Journal of Business Ethics, Springer, vol. 100(4), pages 673-688, June.
    8. Lee, Eun Mi & Park, Seong-Yeon & Rapert, Molly I. & Newman, Christopher L., 2012. "Does perceived consumer fit matter in corporate social responsibility issues?," Journal of Business Research, Elsevier, vol. 65(11), pages 1558-1564.
    9. Cory Searcy, 2012. "Corporate Sustainability Performance Measurement Systems: A Review and Research Agenda," Journal of Business Ethics, Springer, vol. 107(3), pages 239-253, May.
    10. Sean Valentine & Gary Fleischman, 2008. "Ethics Programs, Perceived Corporate Social Responsibility and Job Satisfaction," Journal of Business Ethics, Springer, vol. 77(2), pages 159-172, January.
    11. Spence, Michael, 1974. "Competitive and optimal responses to signals: An analysis of efficiency and distribution," Journal of Economic Theory, Elsevier, vol. 7(3), pages 296-332, March.
    12. Longinos Marin & Salvador Ruiz & Alicia Rubio, 2009. "The Role of Identity Salience in the Effects of Corporate Social Responsibility on Consumer Behavior," Journal of Business Ethics, Springer, vol. 84(1), pages 65-78, January.
    13. Muhammad Ashraf & Bushra Khan & Rabia Tariq, 2017. "Corporate Social Responsibility Impact on Financial Performance of Bank’s: Evidence from Asian Countries," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 7(4), pages 618-632, April.
    14. Andrea Stanaland & May Lwin & Patrick Murphy, 2011. "Consumer Perceptions of the Antecedents and Consequences of Corporate Social Responsibility," Journal of Business Ethics, Springer, vol. 102(1), pages 47-55, August.
    15. Lee, Yong-Ki & Lee, Choong-Ki & Lee, Seung-Kon & Babin, Barry J., 2008. "Festivalscapes and patrons' emotions, satisfaction, and loyalty," Journal of Business Research, Elsevier, vol. 61(1), pages 56-64, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ana Belén Tulcanaza-Prieto & Manuel Eugenio Morocho-Cayamcela, 2021. "The Evolution and Takeoff of the Ecuadorian Economic Groups," Economies, MDPI, vol. 9(4), pages 1-16, December.
    2. Muddassar Sarfraz & Ilhan Ozturk & Sunghoon Yoo & Muhammad Ali Raza & Heesup Han, 2023. "Toward a new understanding of environmental and financial performance through corporate social responsibility, green innovation, and sustainable development," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-17, December.
    3. Zsuzsanna Győri & Yahya Khan & Krisztina Szegedi, 2021. "Business Model and Principles of a Values-Based Bank—Case Study of MagNet Hungarian Community Bank," Sustainability, MDPI, vol. 13(16), pages 1-27, August.
    4. Daniel Ogachi & Zeman Zoltan, 2020. "Corporate Social Responsibility and Firm Value Protection," IJFS, MDPI, vol. 8(4), pages 1-22, November.
    5. Afshin Omidi & Cinzia Dal Zotto, 2022. "Socially Responsible Human Resource Management: A Systematic Literature Review and Research Agenda," Sustainability, MDPI, vol. 14(4), pages 1-20, February.
    6. Maider Aldaz Odriozola & Igor Álvarez Etxeberria, 2021. "Determinants of Corporate Anti-Corruption Disclosure: The Case of the Emerging Economics," Sustainability, MDPI, vol. 13(6), pages 1-17, March.
    7. Ana Belen Tulcanaza-Prieto & Younghwan Lee & Jeong-Ho Koo, 2020. "Effect of Leverage on Real Earnings Management: Evidence from Korea," Sustainability, MDPI, vol. 12(6), pages 1-20, March.
    8. László Berényi & Nikolett Deutsch, 2021. "Corporate Social Responsibility and Business Philosophies among Hungarian Business Students," Sustainability, MDPI, vol. 13(17), pages 1-21, September.
    9. Ibrahim Sameer, 2021. "Impact of corporate social responsibility on organization’s financial performance: evidence from Maldives public limited companies," Future Business Journal, Springer, vol. 7(1), pages 1-21, December.
    10. Miguel Ángel Martín Valmayor & Beatriz Duarte Monedero & Luis A. Gil-Alana, 2021. "The Social Balance Sheet as Part of the Annual Report in Financial Institutions. A Case Study: Banco Bilbao Vizcaya Argentaria (BBVA)," Sustainability, MDPI, vol. 13(6), pages 1-14, March.
    11. Haifei Wang & Hongjun Wu & Peter Humphreys, 2022. "Chinese Merchant Group Culture, Corporate Social Responsibility, and Cost of Debt: Evidence from Private Listed Firms in China," Sustainability, MDPI, vol. 14(5), pages 1-18, February.
    12. Yongfeng Zhang & Peng Wang & Jongwook Kwon, 2021. "CSR in China: Does Being Close to the Central or Local Government Matter?," Sustainability, MDPI, vol. 13(16), pages 1-12, August.
    13. Indah Fajarini Sri Wahyuningrum & Amin Chegenizadeh & Natasya Ghinna Humaira & Mochamad Arief Budihardjo & Hamid Nikraz, 2023. "Corporate Governance Research in Asian Countries: A Bibliometric and Content Analysis (2001–2021)," Sustainability, MDPI, vol. 15(8), pages 1-20, April.
    14. Ana Belen Tulcanaza-Prieto & Iliana E. Aguilar-Rodríguez & Chang Won Lee, 2022. "Customer Perception and Its Influence on the Financial Performance in the Ecuadorian Banking Environment," Sustainability, MDPI, vol. 14(12), pages 1-14, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Stanisavljević Milena, 2017. "Does Customer Loyalty Depend on Corporate Social Responsibility?," Naše gospodarstvo/Our economy, Sciendo, vol. 63(1), pages 38-46, March.
    2. Ovidiu-Ioan Moisescu, 2015. "The Impact of Customers' Perception of CSR on Corporate Brand Loyalty: The Case of the Romanian Mobile Telecom Industry," Central European Business Review, Prague University of Economics and Business, vol. 2015(2), pages 21-30.
    3. Pilar Fernández‐Ferrín & Sandra Castro‐González & Belén Bande, 2021. "Corporate social responsibility, emotions, and consumer loyalty in the food retail context: Exploring the moderating effect of regional identity," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(2), pages 648-666, March.
    4. Joana S. P. Story & Filipa Castanheira, 2019. "Corporate social responsibility and employee performance: Mediation role of job satisfaction and affective commitment," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 26(6), pages 1361-1370, November.
    5. Haywantee Ramkissoon & Felix Mavondo & Vishnee Sowamber, 2020. "Corporate Social Responsibility at LUX* Resorts and Hotels: Satisfaction and Loyalty Implications for Employee and Customer Social Responsibility," Sustainability, MDPI, vol. 12(22), pages 1-22, November.
    6. Ovidiu-Ioan Moisescu & Oana-Adriana Gică, 2020. "The Impact of Environmental and Social Responsibility on Customer Loyalty: A Multigroup Analysis among Generations X and Y," IJERPH, MDPI, vol. 17(18), pages 1-21, September.
    7. Khadija Bouraoui & Sonia Bensemmane & Marc Ohana, 2020. "Corporate Social Responsibility and Employees’ Affective Commitment: A Moderated Mediation Study," Sustainability, MDPI, vol. 12(14), pages 1-16, July.
    8. Rajesh Sharma & Vranda Jain, 2019. "CSR, Trust, Brand Loyalty and Brand Equity: Empirical Evidences from Sportswear Industry in the NCR Region of India," Metamorphosis: A Journal of Management Research, , vol. 18(1), pages 57-67, June.
    9. Izaskun Agirre Aramburu & Irune Gómez Pescador, 2019. "The Effects of Corporate Social Responsibility on Customer Loyalty: The Mediating Effect of Reputation in Cooperative Banks Versus Commercial Banks in the Basque Country," Journal of Business Ethics, Springer, vol. 154(3), pages 701-719, February.
    10. Park, Eunil & Kim, Ki Joon & Kwon, Sang Jib, 2017. "Corporate social responsibility as a determinant of consumer loyalty: An examination of ethical standard, satisfaction, and trust," Journal of Business Research, Elsevier, vol. 76(C), pages 8-13.
    11. Abdelmoety, Ziad Hassan & Aboul-Dahab, Sameh & Agag, Gomaa, 2022. "A cross cultural investigation of retailers commitment to CSR and customer citizenship behaviour: The role of ethical standard and value relevance," Journal of Retailing and Consumer Services, Elsevier, vol. 64(C).
    12. Jose Benitez & Laura Ruiz & Ana Castillo & Javier Llorens, 2020. "How corporate social responsibility activities influence employer reputation: The role of social media capability," Post-Print hal-02462583, HAL.
    13. Min Zhang & Biying Jin & G. Alan Wang & Thong Ngee Goh & Zhen He, 2016. "A Study of Key Success Factors of Service Enterprises in China," Journal of Business Ethics, Springer, vol. 134(1), pages 1-14, March.
    14. Hsiu-Hua Chang, 2017. "Consumer Socially Sustainable Consumption: The Perspective toward Corporate Social Responsibility, Perceived Value, and Brand Loyalty," Journal of Economics and Management, College of Business, Feng Chia University, Taiwan, vol. 13(2), pages 167-191, August.
    15. Debjani Ghosh & L. Gurunathan, 2014. "Linking Perceived Corporate Social Responsibility and Intention to Quit: The Mediating Role of Job Embeddedness," Vision, , vol. 18(3), pages 175-183, September.
    16. Vicenta Sierra & Oriol Iglesias & Stefan Markovic & Jatinder Jit Singh, 2017. "Does Ethical Image Build Equity in Corporate Services Brands? The Influence of Customer Perceived Ethicality on Affect, Perceived Quality, and Equity," Journal of Business Ethics, Springer, vol. 144(3), pages 661-676, September.
    17. Ana Belén Tulcanaza-Prieto & Iliana E. Aguilar-Rodríguez & Carlos Artieda, 2021. "Organizational Culture and Corporate Performance in the Ecuadorian Environment," Administrative Sciences, MDPI, vol. 11(4), pages 1-17, November.
    18. Kenneth Roeck & François Maon, 2018. "Building the Theoretical Puzzle of Employees’ Reactions to Corporate Social Responsibility: An Integrative Conceptual Framework and Research Agenda," Journal of Business Ethics, Springer, vol. 149(3), pages 609-625, May.
    19. Joana Araújo & Inês Veiga Pereira & José Duarte Santos, 2023. "The Effect of Corporate Social Responsibility on Brand Image and Brand Equity and Its Impact on Consumer Satisfaction," Administrative Sciences, MDPI, vol. 13(5), pages 1-16, April.
    20. Del Bosco, Barbara & Misani, Nicola, 2011. "Keeping the enemies close: The contribution of corporate social responsibility to reducing crime against the firm," Scandinavian Journal of Management, Elsevier, vol. 27(1), pages 87-98, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:12:y:2020:i:4:p:1621-:d:323485. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.