Assessing the Nexus between Social Responsibility, Environmental Initiatives, and  Profitability: A Sustainable Finance Perspective of the Universal Banks in the Philippines

Denise Marie C. Aneslagon; Lance Bill B. Lim; Mae Ann S. Tomongha; Jeanica Eivey R. Legaspi; Abba Jamiah  P. Limbaga; Jeah S. Casayas; Dale Q. Talaboc

doi:10.56868/ijmt.v2i1.40

Authors

Denise Marie C. Aneslagon School of Business and Management, University of San Jose - Recoletos, Cebu City, 6000, Philippines
Lance Bill B. Lim School of Business and Management, University of San Jose - Recoletos, Cebu City, 6000, Philippines
Mae Ann S. Tomongha School of Business and Management, University of San Jose - Recoletos, Cebu City, 6000, Philippines
Jeanica Eivey R. Legaspi School of Business and Management, University of San Jose - Recoletos, Cebu City, 6000, Philippines
Abba Jamiah P. Limbaga School of Business and Management, University of San Jose - Recoletos, Cebu City, 6000, Philippines
Jeah S. Casayas School of Business and Management, University of San Jose - Recoletos, Cebu City, 6000, Philippines
Dale Q. Talaboc School of Business and Management, University of San Jose - Recoletos, Cebu City, 6000, Philippines https://orcid.org/0009-0008-7815-943X

DOI:

https://doi.org/10.56868/ijmt.v2i1.40

Keywords:

Universal Banks, Return on Equity, Social Responsibility Projects, Environmental Projects, Regression Analysis

Abstract

This study examines the impact of social responsibility and environmental projects on the profitability of 10 Universal Banks in the Philippines within the context of the Bangko Sentral ng Pilipinas (BSP) through sustainable finance framework. The research adopts a quantitative approach and analyzes data from 2019 to 2021 using exploratory data analysis and regression analysis was used to capture any evolving trends or shifts in the relationship between banks' engagement in these projects and their financial performance. The study found that the number of social responsibility and environmental projects undertaken by Universal Banks did not exhibit a statistically significant impact on their profitability during this period (2019-2021). However, the study emphasizes the broader value of these initiatives, as they contribute to sustainability, promote corporate social responsibility, and align with global trends towards a more environmentally conscious and socially responsible business landscape. The research suggests that banks should continue to invest in social and environmental projects for their substantial societal and ecological impacts, aligning with the evolving needs and expectations of customers, investors, and the broader community.