The Influence of CSR Practices on the Financial Performance of Microfinance Institutions in Togo

  •  Akouvi Gadedjisso-Tossou    
  •  Curwitch P’ham Bodjona    
  •  Maman Tachiwou Aboudou    
  •  Jean-Pierre Gueyie    


Microfinance pursues a dual objective: reduce poverty (social performance) and ensure lasting profitability (financial performance). However, beyond these two performances, microfinance institutions (MFIs) have a social responsibility (CSR) towards their stakeholders. The main objective of this article is to measure the influence of the CSR practices of Togolese MFIs on their financial performance. The analysis is conducted over a sample of 60 Togolese MFIs, using the principal component analysis and generalized least squares techniques. The results show that CSR through the dimensions customer, employees and community positively and significantly impact on the financial performance of MFIs when measured by ROA, while the environment dimension has a negative significant influence.

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