A comparison of participation and conventional banks in terms of corporate social responsibility

Conducting its activities with awareness of corporate social responsibility has become an important measure that differentiates a business from others. The present study aimed to determine the current state of the concept of corporate social responsibility in Türkiye and to compare banks in terms of the corporate social responsibility activities they have done so far, and to determine how their levels of corporate social responsibility were related to their banking performance. The study sample was comprised of conventional and participation banks. The data related to the dependent and the independent variables in the study was obtained from the selected banks' policy statements and the Banks Association of Türkiye and analysed through the methodology of panel data analysis. A total of three models were created to statistically explain the relationship between the indicators of social responsibility in the banking sector and indicators of performance. The logarithms of the variables of indicators of banking performance and those of social responsibility were included in the analyses, which indicated a positive significant relationship between the two variables. Fragility in terms of the indicators of social responsibility was significantly greater within individual banks than inter-bank fragility. The Delta homogeneity test was conducted on the Model 1, Model 2, and Model 3 created to determine how conventional and participation banks' social responsibility activities influenced their performance. The null hypothesis in the test assumed that all slope coefficients would be the same against cross-sectional units, while the alternative hypothesis assumed there would be differences in slope coefficients. The homogeneity test results indicated that the null hypothesis, which suggested that all of the slope coefficients of the three models that were created to determine the effects of the social responsibility activities on conventional and participation banks' performance would be the same against cross-sectional units, could not be rejected, which points to the fact that the slope coefficients were homogenous in all three models.