Global Advanced Research Journal of Management and Business Studies (ISSN: 2315-5086) December 2016 Vol. 3(12), pp 561-569
Copyright © 2014 Global Advanced Research Journals
Original Research Articles
Effect of Corporate Social Responsibilities of Banks on Ebonyi State University
Basil U. Onwe
Department of Banking and Finance, Ebonyi State Univesrity, PMB, 053 Abakaliki.
Accepted 04 December 2014
Corporate social responsibility by banks in Nigeria towards finding out the extent of adoption, the benefits to the banks especially the relationship of Corporate Social Responsibilities (CSR) to the profitability of the banks and the need for regulation on Corporate Social Responsibilities (CSR) for banks in Nigeria. This becomes necessary because the banking sector like other organizations both governmental and non-governmental has a major role to play in fast racking the well-being of the society. This work aims at studying the effect of Corporate Social Responsibilities of Banks on their Host Communities. A case of Ebonyi State University and Zenith Bank Plc. The study used qualitative data and multiple regression techniques in the analysis. The result of the descriptive analysis shows strong positive relationships between dependent and independent variables. The results of principal component analysis indicate that, there are two factors whose Eigenvalues exceed 1.0. Analysis of the correlation matrix indicates that independent variables has a significant positive relationship between bank corporate social responsibility and host communities in Abakaliki (r=0.203). The regression estimation results reveals that the variables- monetary donation (MD) and non-monetary donations (NMD) are statistically significant in explaining the level of host community’s confidence in bank corporate social responsibility in Abakaliki. The hypotheses testing shows that bank corporate social responsibility has helped in boosting host community’s confidence on bank social responsibility in Abakaliki. We therefore recommend that since CSR is generally seen to have positive relationship with financial performance (profitability) of banks, Bank management should incorporate in their policies the practice of CSR, which should be followed up with measures to ensure implementation.
Keywords: CSR, EBSU, Monetary Donation, Non-monetary Donation, Profitability