Contribution of Corporate Social Responsibility towards the Performance of Financial Institutions in Tanzania: A Case of CRDB Bank - Iringa Branch
Abstract
This study examines the impact of Corporate Social Responsibility (CSR) on the performance of financial institutions in Tanzania, with a specific focus on CRDB Bank in Iringa. The research investigates how CSR frequency, types, and employee participation influence market expansion, as well as how CSR expenditure contributes to institutional performance. Utilizing a quantitative approach, primary data was collected through interviews and questionnaires and analyzed using descriptive analysis, presented as frequencies, ratios, and inferences.
Findings reveal that CRDB Bank Iringa has predominantly focused on CSR activities related to education and health programs over the past decade, with less emphasis on community development and environmental conservation. Employee engagement in CSR initiatives has facilitated resource distribution to beneficiaries, including students, disabled individuals, teachers, and medical professionals, while fostering community trust among parents, government officials, and the broader community. The study also observed a 3.1% average growth rate in profit margin and revenue over the past three years, categorized as moderate growth, alongside a 2.1% reduction in costs, considered below average. These indicators suggest that while CSR likely contributes to CRDB Bank's financial performance, growth is multifactorial.
The study recommends further research into community perceptions of financial institutions involved in CSR activities to better understand the broader impacts of CSR on institutional performance.
How to Cite This Article
Pasquiter J Kagine (2024). Contribution of Corporate Social Responsibility towards the Performance of Financial Institutions in Tanzania: A Case of CRDB Bank - Iringa Branch . International Journal of Multidisciplinary Research and Growth Evaluation (IJMRGE), 5(6), 314-322.