Impact of Corporate Social Responsibility on Firm Reputation and Financial Performance: The Moderating Role of Servant Leadership

Ahmad Nabi Ahmadzai, Faizan Ahmad, Muhammad Imran, and Muhibullah Zamani

Impact of Corporate Social Responsibility on Firm Reputation and Financial Performance: The Moderating Role of Servant Leadership

Ahmad Nabi Ahmadzai, Faizan Ahmad, Muhammad Imran, and Muhibullah Zamani

Volume 6 Issue 3 | Sep 2023

DOI: 10.31841/KJEMS.2023.146

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Abstract

This study investigates the influence of corporate social responsibility (CSR) on firm reputation and financial performance within Afghanistan's banking industry, utilizing the frameworks of stakeholder theory and contingency theory. To gauge the perceptions of CSR, reputation, and performance among a sample of 200 employees from both private and public banks, a questionnaire survey was administered. The collected data was subjected to quantitative analysis. The findings reveal that socially responsible actions undertaken by bank employees exert a significant and positive impact on the bank's reputation and financial performance. Moreover, the study demonstrates that the relationship between CSR and financial performance, as well as CSR and firm reputation, is moderated by servant leadership. These results highlight how businesses that actively participate in social activities and adopt a servant leadership style can enhance their public image and financial performance.
Keywords: Corporate Social Responsibility, Firm Reputation, Firm Financial Performance, Servant Leadership, Banking sector.