Relationship between Corporate Social Responsibility and Bank Performance of Listed Banks in Vietnam

Abstract

The good implementation of social responsibility by businesses not only helps the bank to develop sustainably but also contributes to the sustainable development of society. This research aims to investigate the relationship between social responsibility and commercial bank performance in Vietnam, specifically, to determine the magnitude and trend of factors' impact on profitability. Then, provide implications for solutions to strengthen the bank's social responsibility initiatives while also increasing the bank's profitability. The research investigated the impact of corporate social responsibility on bank performance in Vietnam by collecting secondary data from 17 banks listed on two exchanges, HOSE and HNX, from 2015 to 2020 in Vietnam. The findings show that most banks in Vietnam are giving more and more attention to corporate social responsibility activities, with all banks paying special emphasis to human resource activities. Quantitative research results have shown that bank performance is related to financial leverage, bank size, and social responsibility activities related to human resources. Three groups of related solutions have been proposed to increase the bank's performance from the research results. The research novelty lies in the relationship between corporate social responsibility and bank performance of listed banks.