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Abstract
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.
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DOI: http://dx.doi.org/10.21902/Revrima.v3i41.5866
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