Impact of Corporate Social Responsibility on Financial Performance of Ethiopian Commercial Banks: A Case Study of Wegagen Bank S.C

The integration of fundamental elements of corporate social responsibility (CSR) into financial institutions and banking policies and procedures is essential for mitigating compliance-related risks. This research explores how corporate social responsibility influences the financial performance of Wegagen Bank S.C., a commercial banking institution in Ethiopia. This study investigates the impacts of corporate social responsibility on the financial performance of Wegagen Bank S.C., a commercial bank in Ethiopia. Utilizing an explanatory research design, this study employs quantitative and qualitative methods. Data was collected via purposive sampling by using questionnaires and interviews for primary data, and document reviews for secondary data. Statistical analysis, conducted using SPSS version 20, included tools such as correlation, regression, percentages, and trend analysis. The findings highlight a range of CSR activities conducted by the bank, demonstrating a affirmative link between corporate social responsibility initiatives and financial performance. Challenges identified include limited research, implementation difficulties, and credibility issues. Opportunities include enhancing the corporate image, increasing deposits, attracting foreign currency, and acquiring new customers.