Impact of Corporate Social Responsibility Practices on the Financial Performance of Microfinance Institutions in Togo | Chapter 7 | New Innovations in Economics, Business and Management Vol. 10

Two objectives of microfinance are to reduce poverty (social performance) and to guarantee long-term profitability (financial performance). Microfinance institutions (MFIs) also have a social duty to its stakeholders in addition to these two factors. MFIs are among the numerous businesses that are becoming more interested in corporate social responsibility (CSR) policies. Many advantages, including as employee recruitment and loyalty, customer retention, and brand reputation, are promoted; nevertheless, CSR also results in higher expenses. The primary goal of this paper is to evaluate how Togolese MFIs' CSR activities affect their financial performance (FP). A sample of 60 Togolese MFIs was analysed using principal component analysis and partial least squares methods. Using the return on assets as a benchmark (ROA), The findings show that CSR positively and significantly affects MFIs' financial performance in the areas of customers, workers, and the community, but negatively and significantly affects their environmental performance. Given the general increase in interest in environmental concerns, educational initiatives and governmental regulations must be established and put into place to alter the perception that environmental efforts and costs are unimportant.

Author(s) Details:

Akouvi Gadedjisso-Tossou,

Faculty of Economics and Management, University of Lome, Lome, Togo.

Curwitch P’ham Bodjona,

Faculty of Economics and Management, University of Lome, Lome, Togo.

Maman Tachiwou Aboudou,

Faculty of Economics and Management, University of Lome, Lome, Togo.

Jean-Pierre Gueyie,

School of Management, University of Quebec in Montreal, Montreal, Quebec, Canada.

Please see the link here: https://stm.bookpi.org/NIEBM-V10/article/view/7412