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Corporate Social Responsibility and Profitability: A Case Study on Dutch Bangla Bank Ltd

Author

Listed:
  • Suraiya Mahbuba

    (Lecturer, Stamford University Bangladesh)

  • Nusrat Farzana

    (Lecturer, Stamford University Bangladesh)

Abstract

In Bangladesh, the banking sector has a glorious history of getting engaged themselves in different kinds of social activities which is formally known as CSR (Corporate Social Responsibilities). The paper examines the relationship between CSR and profitability of Dutch Bangla Bank Ltd (DBBL) which is the initiator of CSR activities in the banking sector of Bangladesh. The study used annual reports of DBBL for the year 2002 to 2011. Ordinary least square (OLS) model of regression was analyzed using SPSS 16. to assess the impact as well as test the hypothesis of the study whether there is a relationship and the extent of the relationship between the independent variable (corporate social responsibility expenditure) and the dependent variable (profit after tax). Above all, the analysis revealed that 90.7% of the variance of profit after tax of DBBL has been explained by the benefit accrued from corporate social responsibility. The hypothesis that was formulated was tested and the result shows that there is significant positive relationship between corporate social responsibility and profitability in case of DBBL.

Suggested Citation

  • Suraiya Mahbuba & Nusrat Farzana, 2013. "Corporate Social Responsibility and Profitability: A Case Study on Dutch Bangla Bank Ltd," International Journal of Business and Social Research, MIR Center for Socio-Economic Research, vol. 3(4), pages 139-145, April.
    • Handle: RePEc:mir:mirbus:v:3:y:2013:i:4:p:139-145
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    Cited by:

    1. Vera Gelashvili & María-Jesús Segovia-Vargas & María-del-Mar Camacho-Miñano, 2022. "What factors condition the financial viability of sheltered employment centres? Empirical evidence," Review of Managerial Science, Springer, vol. 16(2), pages 459-482, February.
    2. Jayasree Mangalagiri & Malla Praveen Bhasa, 2022. "Corporate social responsibility and firm performance: evidence from India’s national stock exchange listed companies," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 19(2), pages 144-152, June.
    3. Nooraisah Katmon & Zam Zuriyati Mohamad & Norlia Mat Norwani & Omar Al Farooque, 2019. "Comprehensive Board Diversity and Quality of Corporate Social Responsibility Disclosure: Evidence from an Emerging Market," Journal of Business Ethics, Springer, vol. 157(2), pages 447-481, June.
    4. Muttanachai Suttipun & Pankaewta Lakkanawanit & Trairong Swatdikun & Wilawan Dungtripop, 2021. "The Impact of Corporate Social Responsibility on the Financial Performance of Listed Companies in Thailand," Sustainability, MDPI, vol. 13(16), pages 1-14, August.

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