Corporate Social Responsibility as a Strategic Tool for Organisaeional Success in Corpoarate Financial Intermediation: Empirical Evidence from Rivers State, Nigeria

This study set out to examine the correlation between Corporate Social Responsibility (CSR) and the performance of financial institutions in Rivers State. The study was based on social contract theory, legitimacy theory, and stakeholders' theory. The study utilized a cross-sectional survey, which is a sort of quasi-experimental methodology, to assess the study's respondents. The research population consisted of middle and senior management workers from financial organizations. A total of 240 respondents were easily given copies of the questionnaire. The data collected from this procedure were examined and a total of 4 hypotheses were evaluated using Spearman's Rank Correlation. The results obtained from these tests indicated a favorable and statistically significant correlation between CSR and the financial performance of organizations in Rivers State. The study indicates that CSR initiatives are essential and effective means for financial institutions to gain the trust and support of important stakeholders, such as consumers and local communities. Allocating resources towards CSR initiatives may assist banks in cultivating a favorable and constructive reputation, ultimately contributing to their achievements. The study's findings and conclusion suggest that banks aiming to enhance and maintain their reputation should prioritize investing more in their CSR initiatives. This can be achieved by allocating a higher percentage of their post-tax profits towards addressing significant socio-economic and environmental issues in the communities where they operate. By doing so, banks can improve their public image and overall success. Furthermore, it is crucial for companies to demonstrate ethical responsibility in their product and service design, as well as in their interactions with important stakeholders and the general public. This study has provided evidence that implementing these strategic approaches can enhance public trust and contribute to overall corporate success.