Abstract
Aim: CSR has played an essential role in entities’ financial performance, especially in the banking sector. Therefore, the main intent of the researcher was to assess the role of CSR expenditure on the stock performance of the UK, specifically in the banking sector.
Method: The secondary quantitative method has been deployed to assess the stock performance of the banking sector. However, information was derived from annual reports and yahoo finance for 10 famous banks in the UK, covering the period of 2019 to 2021. For data analysis, descriptive statistics, correlation analysis, Hausman, and GLS fixed effect models were used through using Stata software.
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In the present era, the concept of CSR (i.e. corporate social responsibility) is witnessing a rising trend in different economic sectors. CSR is generally formed on a philanthropy basis to be a part of an organisation which aims to improve the productivity of the workplace and contributes towards increasing the well-being of stakeholders as well as the working environment (Raja & Guru, 2021). It shows that organisations adopt CSR measures in their business plans to sustain organisational goals. From the researchers’ viewpoint, CSR plays a significant role in economic growth and is now adopted by both non-banking and banking organisations across the world (Singla et al., 2021). Different studies have been conducted to highlight the significance of CSR activities in improving the overall performance of the banking sector (Siueia, Wang & Deladem, 2019). The UK banking sector is also boosting its performance by adopting resilience measures to overcome the pandemic-induced economic shock that affects its productivity (Bojko, 2022). In the present scenario, it can be observed that the importance of CSR expenditure is increasing in banking firms worldwide, and the UK banking sector is also incorporating CSR measures to overcome the economic shock.
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