EFFECTS OF CORPORATE SOCIAL RESPONSIBILITY ON FINANCIAL PERFORMANCE OF MICROFINANCE BANKS IN RWANDA: A CASE OF UNGUKA BANK PLC (2012-2021)
Abstract
This study established the effects of corporate social responsibility on financial performance of microfinance banks in Rwanda: A case study of Unguka Bank Plc undertaken within period of 2012-2021. The specific objectives were to analyze indicators of financial performance of Unguka Bank Plc and to assess the relationship between corporate social responsibility and financial performance of Unguka Bank Plc. Data was collected by using documentary analysis where quantitative technique was employed. Data was gathered from Unguka Bank Plc financial statements, archives and integrated reports and the data was analyzed by using regression and correlation analysis with the help of Stata to get relevant information. Findings showed that the indicators of financial performance of Unguka Bank Plc were good as indicated by both ratios such ROE and ROA among others. The researcher found that there is a strong positive relationship between CSR and financial performance of Unguka Bank Plc. Corporate social responsibility has statistically significant and strong effect on financial performance of Unguka Bank Plc with p-value is 0.0002 and R-Square of 91.47%. The researcher recommended that Unguka Bank Plc should increase amounts invested in corporate social responsibility and integrate corporate social responsibility as part of its core business in order to improve its indicators of financial performance.
Key words: Corporate Social Responsibility and financial performance
CITATION: Nibasumba, F., & Tumusherure, W. (2022). Effects of corporate social responsibility on financial performance of microfinance banks in Rwanda: A Case of Unguka Bank Plc (2012-2021). The Strategic Journal of Business & Change Management, 9 (4), 1710 – 1727.
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DOI: http://dx.doi.org/10.61426/sjbcm.v9i4.2519
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