The Relationship of Corporate Social Responsibility Programs and the Financial Performances of Philippine Government Banks

Abstract

Corporate social responsibility is a company’s obligation to be accountable in all its operations and activities. In the banking industry, they emphasize corporate social responsibility through programs as not just only a part of some promotion or advancement but also as an obligation to their stakeholders as well as to the environment. Moreover, the stakeholders’ interests at banks are a straight stake in financial performance. This study aims to assess and determine the relationship of corporate social responsibility programs of a Philippine government bank to its financial performances. The respondents of the study were the selected one hundred twenty (120) employees and beneficiaries of Land Bank of the Philippines and documentary data were also utilized. To answer and analyze the problems the following tools were used: frequency and percentage, weighted mean, z-test, and Pearson product-moment correlation (r). Findings revealed that the corporate social responsibility programs of Land Bank of the Philippine such as education, environmental, and health are properly executed. It was also determined in the study that the financial performances of Land Bank of the Philippines in terms of Return on Equity (ROE) and Return on Assets (ROA) have significant correlation on its corporate social responsibility programs. The lack of employees assigned to undertake corporate social responsibility programs and limited sponsors are slight problems encountered by Land Bank of the Philippines. Findings revealed that the corporate social responsibility programs of Land Bank of the Philippine such as education, environmental, and health are properly executed. In terms of education program, the granting of financial assistance and scholarships, providing school supplies, developing interactive computer-based e-learning modules, and integrating public school facilities to their beneficiary schools and communities are implemented. Likewise, on the environmental program: cleaning rivers, planting trees and involving in the national greening program and on health: dental medical mission, providing free general check-ups and medicines and bloodletting are also implemented.