Global Journal of Commerce & Management Perspective
Open Access

Abstract

Enhancing the CSR of the Banks for Growth and Performance Improvement: A Theoretical Perspective

Edem Okon Akpan

This theoretical paper explores CSR and enhancement of growth and performance in the banking sector in response to call by previous study to explore CSR as a way to enhance bank's growth and performance. The paper examines several literature on CSR with particular reference to the banking industry. It establishes that banking industry appears to be more prone to the impact of CSR activities than most other segments of the economy. This is as a result of the need to satisfy a larger spectrum of stakeholders to achieve its economic objective and to maintain an equitable and working balance condition among its employees and the public at large to gain legitimacy to improve its overall corporate performance. In this regard, the paper suggests that banks should go beyond provision of education, hospitals, sports, competitions, community development in their CSR to socio- economic development, healthcare services as well as environmental initiatives. By so doing, they can achieve better growth and performance. However, the paper also observed that large banks are likely to achieve better growth and performance through CSR than the small banks due to the fact that they commit much resource to CSR in return to earned greater equity.