Impact of Corporate Social Responsibility on the Performance of the Banking Sector: Case of United Arab Emirates

Pallavi Kishore


Purpose: The link between the Corporate Social Responsibility (CSR) and a firm’s financial performance is yet to be explored in the emerging economies, without a consensus on the measure of CSR in the extant research available. Therefore, the purpose of this study is to suggest a scale for CSR measure which encompasses a holistic approach and to establish a link based on the scale developed between CSR and financial performance of the Banking Industry in United Arab Emirates (UAE).

Design/methodology/approach: The study analyses data from all commercial banks listed in UAE from 2012-2019. The study uses the panel regression model to control unobserved time-constant heterogeneity.

Findings: CSR expenditure and CSR commitment have a significant relationship with bank profitability. While CSR expenditure has a negative relationship, the latter is positively related to profitability.

Originality: This is one of the first studies to quantify CSR on a scale, and empirically evaluate its significance on firm profitability for an emerging economy.

Research Limitations: The inadequacy of information about CSR, and the lack of consistent reporting format presented obstacles in the data collection process.

Practical Implications:  This research focuses on sustainability theory by practicing CSR, where we research and offer practical advice for the development of tools, practical case studies for UAE and emerging economies.


Corporate Social Responsibility, Financial Performance, Panel Data, Random Effects, Sustainability, Regression Analysis, Ratio Analysis, CSR Scale, CSR expenditure, CSR commitment, Emerging Economies, United Arab Emirates

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