Examining the Relationship between Social Responsibilities, Banking Characteristics and Operating Efficiency: A Study of Commercial Banking in Vietnam

This study empirically investigates the relationship between social responsibility and social responsibility aspects on the operating efficiency of Vietnamese commercial banks from 2017 to 2021.The findings demonstrate that the regulatory function of bank characteristics such as ownership structure, asset size, and stock market listing affect the relationship between social responsibility and bank performance.The results also emphasize that the regulatory role of bank characteristics such as asset size, ownership structure and listing on the stock exchange, which impacts on the relationship of social responsibility and performance in order to help managers have corporate governance on social responsibility as a long-term investment activity to be deployed more aggressively in small banks.More specifically, the more information banks disclose about social responsibility, the greater their operational efficiency, particularly in regards to products, the environment, consumers, partners, the community and society, and managers.For banks with smaller-than-average asset sizes, the more CSR information banks disclose, the greater their operational efficiency.In addition, the same findings are observed in the case of large institutions, where the greater the disclosure of corporate social responsibility, the greater the effectiveness.Meanwhile, the efficacy decreases as the deposit-to-capital ratio rises.This enables bank managers to adapt their business strategies to the actual circumstances of their entities so as to achieve sustainable development objectives.