Corporate Social Responsibility and Financial Performance in A-classed Banks

This paper aims to analyze the impact of corporate social responsibility (CSR) initiatives in cultural heritage, education, environmental protection, financial literacy, and health on financial performance in the context of “A-classed” banks of Nepal. Secondary data on the CSR initiatives and ROE of these banks for nine fiscal years have been collected from the annual reports. The research hypotheses were tested using regression analysis based on the casual comparative design. The empirical results have revealed that CSR in charity, education, and financial literacy are significant predictors of ROE. At the same time, CSR in health has a significant negative effect, and CSR in environmental performance did not demonstrate a significant effect on ROE in this sample. The findings suggest that investments in cultural heritage, education, and financial literacy are associated with improvements in ROE, highlighting their importance for organizational strategies aimed at enhancing profitability. Conversely, managing CSR initiatives inthe environmental sector and health demands intensive review in achieving desired outcomes. The study of CSR and financial performance is essential and may warrant further investigation in different contexts or with alternative metrics to assess its potential influence. These insights can guide organizations in making informed decisions about resource allocation to maximize financial performance.