Abstract

Corporate social responsibility (CSR) has the potential to make positive contributions to the development of society and businesses. Organizations are beginning to see the benefits from setting up strategic CSR agendas.

The increasing attention to CSR is based on its capability to influence firm’s long term performance, especially financial performance. The objective of this study is to assessed corporate social responsibility and its relationship to financial performance. Specifically, the study seeks to examine the extent to which CSR affect the ROA examine the extent to which CSR affect the EPS and to examine the extent to which CSR affect ROCE of commercial banks in Cameroon.

In order to achieved these objective a sample of selected commercial banks in Cameroon were sample using secondary data on the relationship between CSR and financial performance. Data was analysed using SPSS (21.0), were descriptive statistics such as mean, median, standard deviations was calculated. Inferential statistics such as correlation and regression analysed was conducted to test for the null hypothesis.

Findings shows that there is negative and significant relationship between return on assets (ROA) and CSR disclosure. The study also observed a positive and insignificant relationship between earnings per share and CSR disclosure.

The study also found a positive and significant relationship between return on capital employed (ROCE) and CSR disclosure. It was concluded that CSR and financial performance have a significant relationship with each other. Thus it was recommended that the government should through the regulatory authorities compel financial institutions to embark on corporate social responsibility.

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