The contribution of CSR to financial performance: the case of commercial banks in the Souss-Massa region

Abstract

The presented study examines the complex relationship between Corporate Social Responsibility (CSR) and financial performance, a topic of ongoing debate in both academic and professional circles. The value of this study lies in its aim to provide an empirical perspective on this relationship within a specific context—that of commercial banks in the Souss-Massa region of Morocco. The general backdrop is characterized by a growing awareness of social and environmental issues, prompting companies, including financial institutions, to adopt CSR practices (Durand, 2020, p. 15). The study will be based on established definitions of CSR, viewing it as the voluntary integration by companies of social and environmental concerns into their business activities and their interactions with stakeholders. This definition aligns with that proposed by the European Union (European Commission, 2011). Financial performance, meanwhile, is defined as a company’s ability to generate profits and create value for its shareholders. According to Dupont (2018, p. 42), “financial performance remains a key indicator of long-term business viability.” The proposed research methodology is quantitative and will rely on the analysis of both financial and non-financial data from banks in the Souss-Massa region. Data collected from annual reports, questionnaires, and CSR assessments will be statistically analyzed to identify possible correlations and causal relationships between CSR practices and financial performance indicators. The expected results aim to determine whether, in the specific context of banks in the Souss-Massa region, CSR commitment has a positive, negative, or neutral impact on financial performance. The study also seeks to identify which specific CSR dimensions are most likely to positively influence financial performance. These results are expected to confirm or challenge the conclusions of previous studies (Martin et al., 2015). The study will be organized as follows: first, an introduction will establish the context and the research question. This will be followed by a literature review examining the link between CSR and financial performance. Next, the research methodology will be described in detail. Then, empirical results will be presented and analyzed. Finally, a conclusion will summarize the main contributions of the study and suggest directions for future research.