The Impact of Csr Initiatives On Financial Performance in Commercial Banks: An Empirical Examination of Environmental, Social, And Governance (Esg) Drivers

Abstract

These type of studies examining (CSR) corporate social responsibility initiative impact on financials’ performances within commercialized bank sector; focus specifically on environmentally, sociality, and Governance (E.S.G) drivers. Utilizing mixed-methods approaches, panel data from 147 global banks spanning 2015 to 2024 was analyzed throgh fixed-effects regression and mediation analysis, complemented by qualitative case studies. This findings’ reveal the significant positive relationship between CSR engagement and key financial performance indicators such as R.O.A (Return-on-Assets); R.O.E (Return-on-Equity); as well as stocked Pricing Stabilities. Governance’s practices emerging as the most influential ESG Component; underscoring the importance of transparent and ethical management. Social responsibility effects enhanced customer loyalty and community trust, while environmental initiatives that authentic integration of ESG factors into business strategy is crucial to realizing financial benefits, while superficial CSR efforts provide limited value. Based on these findings, recommendations included embedding ESG principles into core banking operations, strengthening governance frameworks, expanding social inclusion initiative, and adopting sustainable environmental practices. This research contributes to the growing literature on CSR and financial performance by offering empirical evidences as well as practical-insights to banks, regulators, as well as stakeholders aiming to foster sustainable growth and long-term value creation in the banking sector.