Corporate Social Responsibility and Financial Performance in Zambia’s Financial Sector: Exploratory Evidence from Two Institutions
DOI:
https://doi.org/10.64137/31079423/IJEBMR-V2I4P106Keywords:
Corporate Social Responsibility, Financial Performance, Financial Institutions, Stakeholder TheoryAbstract
Research on the relationship between corporate social responsibility (CSR) and financial performance remains concentrated in large listed firms and developed markets, while evidence from African financial institutions is limited. This exploratory comparative study examines two lending institutions in Kitwe, Zambia, using employee survey responses (n = 19; Institution X = 10, Institution Y = 9) and five years of reported accounting ratios (2021-2025). The analysis is explicitly associational. Statistics were audited using Welch’s independent-samples t-test, Hedges’ g, exact significance tests for Pearson correlations, and Fisher z confidence intervals. CSR-related perceptions were positively associated with perceived financial performance within Institution X (r = .682, p = .030) and Institution Y (r = .854, p = .003). Nevertheless, Institution X recorded a lower mean perceived financial-performance score than Institution Y (mean difference = -1.37, 95% CI [-1.68, -1.05], Welch t (12.60) = -9.41, p < .001, Hedges’ g = -3.98). Institution X’s mean ROA was 0.87% and mean ROE was 5.81%, with pronounced annual volatility. The coexistence of positive within-institution associations and lower cross-institution performance cautions against treating CSR as a binary intervention or inferring causality from cross-sectional comparisons. The findings indicate that strategic integration, implementation quality, stakeholder engagement, institutional conditions, and time lags are important boundary conditions in the CSR-performance relationship.
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