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The impact of social responsibility on the efficiency and profitability of banks: (Case of Banks Listed in Tehran Stock Exchange)

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  • Dehghan Khavari, Saeed
  • Abdorrahimian, Mohammadhossein
  • Mirjalili, Seyed Hossein
  • Shayesteh, Abolfazl

Abstract

Providing financial services for social projects represents corporate social responsibility (CSR), because it indicates ethical commitment for creating better social environment. It improves public image and loyalty of customers, increases the commercial value of the trademark, promote public trust, create confidence of the beneficiaries, and attract valuable resources by the corporate. Corporates have realized that they are responsible for the society in which they operate. We examined the impact of CSR on the efficiency and profitability of banks. The statistical population of the research is 16 banks listed in Tehran Stock Exchange during the period 2014-2018. Four variables represent efficiency and profitability. Also, six variables included in the model as control variables. The results indicated a positive and significant effect of social responsibility on the efficiency and profitability of the banks, so that the CSR has most effect on the return on assets, net profit margin and return on equity respectively.

Suggested Citation

  • Dehghan Khavari, Saeed & Abdorrahimian, Mohammadhossein & Mirjalili, Seyed Hossein & Shayesteh, Abolfazl, 2023. "The impact of social responsibility on the efficiency and profitability of banks: (Case of Banks Listed in Tehran Stock Exchange)," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 18(3), pages 371-385.
    • Handle: RePEc:zbw:espost:309449
    DOI: 10.61186/jme.18.60.371
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    References listed on IDEAS

    as
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    2. Michael L. Barnett & Robert M. Salomon, 2012. "Does it pay to be really good? addressing the shape of the relationship between social and financial performance," Strategic Management Journal, Wiley Blackwell, vol. 33(11), pages 1304-1320, November.
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