Corporate Social Responsibility and Net Profit in Nepalese Banks and Financial Institutions

This study assesses the status of CSR contribution and examines the impact of CSR on the net profit in Nepalese Banks and Financial Institutions (BFIs), focusing on financial data. It aims to confirm whether CSR contribution links the financial performance of these companies. Using 15 years’ panel data set of 31 BFIs from their annual reports including commercial, development, and finance companies. Quantitative analysis techniques, such as tabular analysis, correlation, and regression, were employed to analyse the CSR-performance relationship comprehensively. The study reveals a transition from philanthropic to strategic CSR initiatives among Nepalese BFIs. Results demonstrate a significant positive correlation between CSR and net profit. The study offers implication for effective CSR promotion. Future research should include longitudinal studies, explore diverse organizational contexts, and examine the societal impact of CSR initiatives in Nepal. By adopting an integrated approach, this study provides valuable insights into CSR dynamics within Nepalese BFIs, guiding stakeholders in enhancing CSR influence and contributing to societal advancement in Nepal.