IMPACT OF CORPORATE SOCIAL RESPONSIBILITY ON THE PROFITABILITY OF THE BANKS IN NIGERIA (A STUDY OF UBA OSOGOBO,OSUN STATE)

This study examines the impact of Corporate Social Responsibility (CSR) practices on the profitability of United Bank for Africa (UBA) in Osogbo, Osun State. Through both quantitative and qualitative methods, the research investigates whether CSR initiatives—such as community development, education sponsorships, health outreach, environmental protection, and employee welfare—affect the bank’s financial performance, focusing particularly on measures like profit after tax, return on equity (ROE), and net profit margin.Data for this study were collected from UBA Osogbo branch records and the bank’s annual reports over a period of seven years (2018–2024). Interviews were also conducted with bank managers and key stakeholders to understand perceptions and priorities regarding CSR activities. Using regression analysis, the study finds that while some CSR expenditures temporarily reduce net profit in the short term (due to the cost burden), over the long term these CSR investments are associated with improved profitability metrics. Specifically, CSR initiatives in community development and environmental protection are positively correlated with ROE and customer retention, which in turn boost profits. However, CSR spending in areas with lower immediate visibility (e.g. internal employee welfare) shows weaker direct impact on profitability.The findings suggest that CSR can be both a cost and an investment: managers must strategically choose CSR projects that deliver both social impact and financial return. The study recommends that UBA Osogbo adopt a CSR strategy aligned closely with its core business operations, measure CSR outcomes more rigorously, and communicate its CSR efforts more transparently to stakeholders to maximize profitability benefits.