Corporate Social Responsibility Ethical Index And The Financial Performance In The Egyptian Banking Sector

Abstract

The objective of the study is to investigate the relationship between corporate social responsibility ethical index adopted in financial institutions and their financial performance. The sample of the study is the financial institutions listed on Egypt stock exchange in the period from 2007-2014. The data are collected from annual reports issued by banks and central bank of Egypt. In order to determine the attributes of banking ethical index six factors are suggested: transparency, reliability, honesty, compliance, guarantees social responsiveness. A questionnaire was developed and distributed to the sampled banks with a kind of high response rate (85%). The results show that 50 % of the Egyptian banks adopted about 55% of ethical bank policies while the other half adopted only about 11 % of ethical activities-The study uses the complete case regression analysis to model the relationship between the high ethical banking index as a censored variable and financial performance. The results indicated that high ethical index banks reported a positive significant impact on banks financial performance.