Corporate Social Responsibility And Financial Performance Of Small And Medium Financial Institutions In The Cape Coast Metropolis: The Moderating Role Of Firm Reputation

Abstract

This study assessed the effects of corporate social responsibility (CSR), firm reputation on the performance of small and medium financial institutions in Cape Coast. The study further examined the moderating effect of firm reputation in the relationship between corporate social responsibility and the performance of small and medium financial institutions. The study utilised the stakeholder and agency theory. The study followed the descriptive research design. The study used the structured questionnaire as a quantitative data collection tool and a semi structured interview guide as a qualitative data collection tool. Again, the study used the SPSS (Version 24.0) to produce descriptive statistics and the Smart PLS (3.0) to determine the reliability and validity of the measurements, structural models and data analysis. The study again, targeted 346 customers from small and medium financial institutions in the Cape Coast Metropolis. In addition to the respective specific research objectives, the findings indicate that CSR has a statistically significant contribution to explaining the dependent variable financial performance. Again, it was found that firm reputation affects financial performance. This indicates that firm‘s reputation has contributed to increasing bank performance. Finally, the study concluded that although firm reputation has a low moderation role on the relationship between corporate social responsibility and the financial performance. The study recommended that by emphasizing direct impact, strengthening implementation and measurement, engaging stakeholders, and promoting internal awareness, these institutions can enhance the effectiveness of their CSR efforts and potentially achieve improved financial performance.