CSR Disclosure and Financial Performance of Philippine Private Domestic Commercial Banks

Abstract

This study aimed at finding out the level of CSR practices and CSR disclosure performance of Philippine private-domestic commercial banks. It described the relationship between CSR Disclosure Performance with Financial Performance in terms of the bank’s profitability measured by ROA and ROE across the years 2014- 2018. The banks’ CSR Disclosure Performance is measured by the Indicators in GRI Sustainability Reporting Standards 2016 specifically, Economic, Environmental and Social. Bank’s Financial Performance is assessed using the common profitability ratios ROA and ROE. The study concludes that Philippine Commercial Banks include their CSR Disclosure in their Annual Reports and there is noticeably a lack of clear and systematic reporting. Although all the commercial banks disclose on their Economic CSR, the Environmental CSR is negligible, and the general CSR Performance score is evidently low. Bank’s profitability is significantly low and is showing a decreasing trend across 2014 to 2018. In terms of significance, the computed probability values are lower than .05 level of significance, hence the banks CSR disclosure on Economic and Environmental aspects are not significant determinants of the bank’ s Profitability as proxied by ROA and ROE. The Environmental aspect was not statistically tested due to lack of disclosed data.