COVID-19 Effect on Corporate Social Responsibility (CSR) Activities: A Comparison Between Islamic and Conventional Banks of Bangladesh
Öz
The Coronavirus pandemic, or COVID-19, has caused a structural shakeup in the economy and healthcare throughout the world. Businesses faced a plunge in profit numbers, if not losses. Despite the crisis, many firms have contributed to society to help the economy survive and recover from the crisis. The objective of the study is to evaluate the CSR contribution by Islamic and conventional banks of Bangladesh pre-COVID and during COVID years.The study used both parametric and non-parametric techniques to compare the CSR ratios, profitability, and asset growth before and during the COVID years. The findings revealed that Islamic banks outperformed conventional banks in terms of CSR contribution both before and during the COVID years despite conventional banks being more profitable than Islamic banks. The central bank also made necessary changes to CSR guidelines for the CSR funds of banks for essential sectors such as healthcare, education, and disaster management.It can be concluded that Islamic banks, supposedly driven by ethical consideration of religion, indeed outperformed the conventional banks in Bangladesh. The experience of this systemic pandemic may guide both policymakers and institutions to tackle the worst effects of man-made or natural disasters through CSR efforts.
JEL Classification: G21, M14, P51
Anahtar Kelimeler
Corporate Social Responsibility, CSR, COVID, Bangladesh, Islamic Banks, Participation Banks, Conventional Banks.
Kaynakça
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